The use of artificial intelligence* continues to moo-ve at an astonishing speed.

Farmers around the world have more or less done things the same way for centuries – but agriculture is the latest industry to be transformed by AI, with the introduction of a “cowgorithm*” that improves efficiency in unexpected ways.

New Zealand-based company Halter has put “smart collars” on cows that allow farmers to control cattle movement via an app.

Farmers have long relied on dogs for help driving cattle across their land, through narrow gateway and into the milking sheds – but that job may eventually be replaced by AI. Picture: file image/NCA

In a development sure to have cattle dogs chasing their tails, the solar-powered collars not only record health information like digestion* and fertility cycles* but also deliver sound and vibration signals direct to the animal.

The herd can be called in for milking at the tap of a button and fences are replaced by digitally-created boundaries, restricting the livestock* to certain parts of a paddock to control land use.

Farmers can set paddock boundaries from their phone. Picture: Halter

Halter was founded in 2016 but recently made waves on social media over reports that world-famous entrepreneur* and investor Peter Thiel – who was famously the first outside investor in Facebook in 2004 – was stepping up financing efforts for the company.

Thiel is one of the high profile “bunker billionaires*” to have chosen New Zealand as his backup plan. He has held New Zealand citizenship since 2011, owns land in Queenstown and has invested in several local start-ups.

Avatar director James Cameron attended the Australasian premiere of Avatar Fire and Ash in Wellington on December 13, 2025. He relocated to New Zealand permanently in 2020 at the height of the Covid pandemic. Picture: Marty Melville/AFP

Bloomberg and other media agencies reported last weekend that the new funding round led by Thiel’s venture capital* firm Founders Fund, would double Halter’s valuation* to more than $2 billion USD.

Cows wear solar-powered AI-driven collars. Picture: Halter

Halter has begun expanding into Australia after reportedly overcoming animal welfare concerns. The collars do deliver electric pulses, but at a fraction of the strength of an electric fence, for example.

But most of the expected demand for the collar is in the US.

American beef prices have soared as the US cattle herd shrinks to its smallest size in 75 years.

The beef industry is big business but current US challenges also impact Australian livestock farmers, including years of drought, rising costs and an ageing workforce. Picture: Fiona Goodall/Getty Images

The decline has been driven by years of drought, rising costs and an ageing ranching workforce.

Experts have suggested rebuilding herds would take years, meaning beef prices were likely to remain high.

Peter Thiel is reportedly doubling down on Halter. Picture: AP Photo/Rebecca Blackwell/file

According to US Department of Agriculture data, the average price of beef in American supermarkets climbed from about $19 per kilogram in February 2025 to $22.31 per kilogram a year later.

The increase has in turn driven up beef prices in Australia, because of the better return* on exported* meat.

Halter’s stated goal was straightforward — fewer workers, lower costs and more efficient land use.

The move to driving cattle remotely represents a major shift in centuries of established farming practices. Picture: file image/NCA

The company’s strategy was part of a broader push toward “precision agriculture”, where technology is used to modernise farming.

But the sector has struggled in recent years, with a wave of start-ups* collapsing and investors pulling back the reins amid high costs and slow take up.

If the latest round closes as expected, it would signal renewed confidence that AI can succeed in farming — an industry where many tech bets have so far fallen short.

– original report with Fox News

Trained Australian cattle dogs could soon have a lot more time on their paws if the smart collars take off. Picture: file image/NCA