Gather AI Raises $40M Series B to Scale Physical Intelligence for the Global Supply Chain
Gather AI has closed a $40 million Series B round that feels less like a routine growth raise and more like a marker that Physical AI is graduating into a core layer of industrial infrastructure. The round is led by Smith Point Capital Management, with participation from Bain Capital Ventures, Tribeca Venture Partners, Bling Capital, Dundee Venture Capital, XRC Ventures, and new investor The Hillman Company. With this round, total funding reaches $74 million, a figure that neatly tracks the company’s shift from promising pilot deployments into something that looks a lot like an emerging system of record for warehouses.
The timing matters. Over the past year, Gather AI has doubled its operational footprint and grown bookings by 250%, which is not a vanity metric in logistics, where expansion usually arrives slowly and painfully. Its platform has quietly become operationally embedded at large-scale players like GEODIS, NFI Industries, Kwik Trip, Axon, dnata, Barrett Distribution, and Langham Logistics. These are not experimental warehouses playing with novelty tech; they are environments where small accuracy gains ripple directly into margin protection, service levels, and working capital.
At the heart of the pitch is a problem everyone in supply chain management knows too well but rarely articulates cleanly: the physical-digital divide. Digital systems insist inventory is in one place, while the warehouse floor tells a different story, usually discovered too late and at great expense. Missed shipments, excess safety stock, labor wasted on recounts, and constant firefighting are symptoms of this gap. Gather AI positions itself as continuous physical intelligence, not periodic audits, and that distinction matters. Instead of reconciling reality after the fact, the system observes it in real time and flags bottlenecks before they metastasize into failures.
What makes this Physical AI rather than another vision system bolted onto forklifts is the training substrate. While most AI platforms digest text, images, or logs scraped from the internet, Gather AI’s models are trained on millions of proprietary warehouse images. That dataset allows autonomous robots to see, count, and verify both static and moving inventory in chaotic, sensor-hostile environments where barcodes are obscured, pallets shift, and humans improvise. It’s messy reality, not a lab demo, and that’s exactly where most automation projects die. Here, it’s where the learning happens.
The operational outcomes are concrete enough to make CFOs lean forward. Customers report up to 99.9% inventory accuracy, reductions of manual counting effort by as much as 80%, productivity improvements approaching 5x, and payback periods under six months. That last number quietly explains the growth curve. In an industry allergic to long, speculative ROI narratives, a sub–six-month return reframes AI from “innovation budget” to line-item efficiency lever. Warehouses stop being opaque cost centers and start behaving like intelligent nodes that actively optimize cash flow and reliability.
Keith Block, founder and CEO of Smith Point Capital Management and former Salesforce co-CEO, frames the ambition bluntly: this is not just better inventory counting, it’s a foundational intelligence layer for the modern supply chain. That language is familiar from cloud and SaaS history, but here it lands differently because the system of record is no longer purely digital. It’s anchored to what is physically present, moving, and changing by the minute. Sankalp Arora, Gather AI’s CEO and co-founder, pushes the idea further, describing a shift from real-time visibility to full autonomous orchestration. The subtle but important claim is that the real value isn’t finding problems faster, but preventing them entirely, nudging Physical AI from “useful” into “indispensable.”
The new capital will fund expansion into hundreds of additional facilities worldwide and accelerate the development of predictive capabilities that move inventory management from reactive correction to proactive control. Engineering and customer success teams are scaling in parallel, a signal that the company expects enterprise-wide rollouts rather than isolated site deployments. Recognition from CB Insights and the Inc. Power Partner Award adds external validation, but the more telling indicator is geographic momentum as Gather AI deepens its footprint across North America, Europe, and Asia.
Looking ahead, the company plans to showcase its platform at Manifest and MODEX throughout 2026. Trade shows aside, the larger story is that Physical AI is no longer being sold as a futuristic add-on. With capital, customers, and measurable ROI aligned, Gather AI is making a credible case that the warehouse itself can finally be observed, understood, and operated with the same precision the digital world has taken for granted for decades. That’s a quiet revolution, but in logistics, quiet revolutions tend to be the ones that actually stick.