Ex-Tesla Engineers Raise $12.5 Million to Automate Supply Chain Decisions With AI

Atomic, a supply chain automation startup founded by former Tesla employees, has raised $12.5 million in a Series A round as it expands its AI-powered platform to automate inventory planning and operational decisions.

The Boston-based company was founded by Michael Rossiter and Neal Suidan, who developed an early version of its technology while working on Tesla’s Model 3 production ramp in 2018. The system was created after traditional spreadsheets struggled to keep pace with rapidly changing production planning needs.

AI Platform Moves Supply Chain Decisions Beyond Spreadsheets

Atomic’s software analyses supply chain scenarios, determines how much inventory companies need, and recommends or automatically makes decisions based on changing conditions.

The company says its approach is designed to help businesses manage complex supply chain decisions by using AI to evaluate possible actions and select the best available option.

Atomic has moved from early pilot programs to working with larger customers, including companies such as DoorDash and HelloFresh. The company’s annual recurring revenue has increased significantly since the beginning of the year, according to Jon McNeill, a former Tesla president and founder of DVx Ventures, where Atomic was incubated.

Former Tesla Leaders Join Expansion Effort

Klass Capital and Madrona Venture Group led the Series A round, bringing Atomic’s total funding to more than $15 million. The company has also added Jeff Goodrich, Tesla’s former planning director, as chief technology officer and a third co-founder.

Atomic said its AI platform has evolved from providing recommendations to making autonomous decisions for customers. McNeill said DoorDash is using the platform across hundreds of locations to support purchasing decisions.

The company is expanding beyond food-related supply chains into areas including consumer packaged goods, mobility, and manufacturing. Atomic says its AI system is designed to adapt to different operating models across industries.

Focus on Autonomous Business Operations

Atomic’s investors highlighted the company’s ability to deploy quickly with new customers and adapt to existing decision processes. The platform can identify decision rules teams use, including processes that may not be formally documented.

Rossiter said the company wants to help businesses move supply chain operations away from spreadsheets and toward software that can support faster planning decisions.