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

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.

The New Paradigm: Bits and Atoms Intertwined

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.

Atomic Industries: Automating Tool and Die Making

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.

AI as a Design Engine

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.

CEO Aaron Slodov’s Vision

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.

"AI in the World of Atoms"

Training the AI: From Liability to Teacher

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.

Rigorous Testing and Design for Manufacturability (DFM)

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.

Funding and Expansion

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.

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.

State-of-the-Art Testbed Facility

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."

Future Investments: Supercomputer and Headcount

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.

Catalyzing America’s Industrial Future

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.

The Vision: Supercharged Productivity

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?"

Key Takeaways:

AI in Manufacturing: Atomic Industries is pioneering the use of AI in the physical manufacturing sector, specifically tool and die making.
Bits and Atoms Integration: The startup embodies the trend of merging digital technology with physical processes.
$17M Seed Funding: The company secured significant seed funding led by Narya, indicating strong investor confidence.
Detroit Facility: A new testbed facility in Detroit will be established to advance AI manufacturing capabilities.
Supercomputer Investment: Atomic plans to build an in-house supercomputer to handle its extensive AI compute needs.
Vision for Industrial Base: The ultimate goal is to enhance America’s industrial competitiveness through AI-driven automation and productivity.

Topics Covered:

Atomic Industries
Hardware
Narya Capital
AI in Manufacturing
Industrial Automation
Tool and Die Making
Venture Capital
Startup Funding
Machine Learning
Robotics
Future of Manufacturing
AI Software Stack
Design Engine
Physics-based Problem Solving
Supercomputer
High-Performance Computing
Detroit
Midwest Talent
Smart Factories
Advanced Manufacturing
AI Applications
Manufacturing AI
AI Hardware
AI Startups
US Industrial Base

Image:

Atomic Industries, laptop on table top

Image Credits: Atomic Industries (opens in a new window)