Atomic Industries Closes $17M Seed to Exascale America's Industrial Base

<h1>Atomic Industries Closes $17M Seed to Exascale America's Industrial Base</h1> <p>In a significant move towards integrating artificial intelligence with physical manufacturing, Atomic Industries has successfully closed a $17 million seed funding round. This funding is earmarked to advance AI in the critical field of tool and die making, aiming to modernize and enhance America’s industrial capabilities.</p> <h2>The New Paradigm: Bits and Atoms Intertwined</h2> <p>The article begins by referencing Peter Thiel’s famous distinction between companies dealing in "bits" (software, digital services) and "atoms" (hardware, manufacturing). However, it posits that this distinction is becoming increasingly irrelevant as a new wave of startups, including Atomic Industries, seamlessly blend both. These companies view digital and physical realms not as separate, but as interconnected tools for innovation.</p> <h3>Atomic Industries: Automating Tool and Die Making</h3> <p>Atomic Industries, founded in 2019, is tackling the complex and crucial process of tool and die making. This process is fundamental to manufacturing a vast array of products, from everyday consumer goods to intricate aircraft components. Tool and die makers are described as akin to alchemists, transforming raw materials into precisely engineered tools. The complexity arises from the unique geometry of each product and the need for generalized intelligence, honed over millennia of human evolution.</p> <h4>AI as a Design Engine</h4> <p>The company’s approach centers on developing an AI software stack designed to function as an ultra-efficient design engine for tools and molds. This AI acts as a translation layer, converting customer manufacturing requirements into the precise specifications for the tools that will produce them. This is particularly suited for the physics-based problem-solving inherent in tool and die design, which is rigidly constrained by product geometry.</p> <h5>CEO Aaron Slodov’s Vision</h5> <p>Atomic CEO and co-founder Aaron Slodov highlights the immense value and difficulty of innovating in the "world of atoms." He states, "In my estimation, the world of atoms is worth 100x more than the world of bits as an industrial (and soon to be space-faring) society." Slodov emphasizes the crucial need to bring the pace of innovation in the physical world closer to that of the digital world, noting the high valuations of companies that successfully merge technology with physical products.</p> <h2>"AI in the World of Atoms"</h2> <h3>Training the AI: From Liability to Teacher</h3> <p>The core of Atomic’s applied AI software stack is analogous to training a human apprentice. Initially, an apprentice is a liability, but over time, they evolve from student to teacher. Atomic aims to build an AI that surpasses human limitations, particularly the inherent inaccuracies in human estimations.</p> <h4>Rigorous Testing and Design for Manufacturability (DFM)</h4> <p>To achieve this, Atomic is starting by focusing on specific areas of die design that can be rigorously tested against industry-standard simulation tools. The startup is initially working with products that are in the later stages of design, where the Design for Manufacturability (DFM) process is largely complete. The long-term goal is to integrate this AI earlier in the product design cycle, providing near real-time feedback to product designers.</p> <h3>Funding and Expansion</h3> <p>The company has secured a significant $17 million in seed funding. The round was led by Narya, with co-leading participation from 8090 Industries and Acequia Capital New Industrials. Additional investors include Porsche Ventures, Yamaha Motor Ventures, Toyota Ventures, and Impatient Ventures, supported by Phaedrus, SaxeCap, Zack Nathan, Tyler Knight, and the CWRU Alumni Fund. Falon Donohue, a partner at Narya, will join Atomic’s board.</p> <p>This funding follows a $3.2 million pre-seed round raised just over 18 months prior. Atomic was also part of the Y Combinator W21 cohort.</p> <h4>State-of-the-Art Testbed Facility</h4> <p>With the new capital, Atomic is establishing a state-of-the-art testbed facility in Detroit. This facility will be crucial for building out its AI manufacturing capabilities. Slodov notes the strategic importance of the Midwest for tool-making talent, stating, "the best talent for tool making is the Midwest, [and] we are leaning in heavily to this DNA."</p> <h4>Future Investments: Supercomputer and Headcount</h4> <p>Beyond the physical facility, the funding will be used to increase headcount across software, operations, and manufacturing teams. A significant portion will also go towards building an in-house supercomputer. Slodov explained that the company’s extensive high-performance computing and machine learning needs make building their own infrastructure more cost-effective than outsourcing to cloud services like AWS.</p> <h2>Catalyzing America’s Industrial Future</h2> <p>While Atomic’s immediate focus is on the specialized trade of tool and die making, its broader ambition is to accelerate a new era for America’s industrial base. The potential payoff is immense, envisioning a future where factory workers have productivity multipliers similar to software engineers, leading to faster and more cost-effective mass production.</p> <h3>The Vision: Supercharged Productivity</h3> <p>Slodov paints a picture of factory workers equipped with advanced AI tools, significantly boosting their productivity and compensation. This technological infusion aims to create a new industrial base capable of propelling the nation into the future. The ultimate question posed is: "Imagine being able to spin up factories that could mass produce anything, at a fraction of speed and cost. What would you build? Where would you build?"</p> <h2>Key Takeaways:</h2> <ul> <li><strong>AI in Manufacturing:</strong> Atomic Industries is pioneering the use of AI in the physical manufacturing sector, specifically tool and die making.</li> <li><strong>Bits and Atoms Integration:</strong> The startup embodies the trend of merging digital technology with physical processes.</li> <li><strong>$17M Seed Funding:</strong> The company secured significant seed funding led by Narya, indicating strong investor confidence.</li> <li><strong>Detroit Facility:</strong> A new testbed facility in Detroit will be established to advance AI manufacturing capabilities.</li> <li><strong>Supercomputer Investment:</strong> Atomic plans to build an in-house supercomputer to handle its extensive AI compute needs.</li> <li><strong>Vision for Industrial Base:</strong> The ultimate goal is to enhance America’s industrial competitiveness through AI-driven automation and productivity.</li> </ul> <h2>Topics Covered:</h2> <ul> <li>Atomic Industries</li> <li>Hardware</li> <li>Narya Capital</li> <li>AI in Manufacturing</li> <li>Industrial Automation</li> <li>Tool and Die Making</li> <li>Venture Capital</li> <li>Startup Funding</li> <li>Machine Learning</li> <li>Robotics</li> <li>Future of Manufacturing</li> <li>AI Software Stack</li> <li>Design Engine</li> <li>Physics-based Problem Solving</li> <li>Supercomputer</li> <li>High-Performance Computing</li> <li>Detroit</li> <li>Midwest Talent</li> <li>Smart Factories</li> <li>Advanced Manufacturing</li> <li>AI Applications</li> <li>Manufacturing AI</li> <li>AI Hardware</li> <li>AI Startups</li> <li>US Industrial Base</li> </ul> <h2>Image:</h2> <p><img src="https://techcrunch.com/wp-content/uploads/2023/12/testbed-91.jpg?w=1024" alt="Atomic Industries, laptop on table top" /></p> <p><em>Image Credits: Atomic Industries (opens in a new window)</em></p>