Warehouse operations can make or break an organization. That problem is at the heart of Gather AI’s latest funding round. The Pittsburgh-based startup announced it has raised $40 million in Series B financing, led by Smith Point Capital Management, the firm founded by former Salesforce co-CEO Keith Block.
The raise brings Gather AI’s total funding to roughly $74 million and positions the company to accelerate global deployment of what it calls a “Physical Intelligence Platform” for logistics.
Unlike the wave of AI tools focused on text, forecasting or optimization layers, Gather AI is aimed squarely at the physical world. Its platform uses computer vision and machine learning to continuously capture and interpret what is happening inside warehouses, from pallet locations to inventory accuracy, using existing cameras, drones and mobile equipment. That data is then fed back into enterprise systems, giving operators a real-time view of conditions that are typically inferred through periodic scans or manual counts.
For many large logistics operations, that gap between system data and physical reality has become costly. Traditional warehouse management systems depend heavily on human inputs and scheduled cycle counts, creating delays and inaccuracies that ripple through fulfillment, labor planning and transportation. Gather AI’s approach replaces those snapshots with continuous verification, reducing the need for manual inventory checks while improving accuracy.
The company says customer adoption has accelerated rapidly over the past year, with bookings up 250% and deployments expanding across major logistics providers, retailers and industrial operators.
“For too long, supply chains have operated with a fundamental blind spot: they couldn’t see what was actually happening on the floor,” said Sankalp Arora, CEO and Co-Founder of Gather AI. “This funding allows us to expand from real-time visibility to full autonomous orchestration. Our customers aren’t just finding problems faster. They’re preventing them entirely. That shift from reactive to proactive is what transforms Physical AI from a nice-to-have into the operating system for modern logistics.”
Customers including GEODIS, NFI Industries and dnata are using the platform to reduce labor-intensive inventory processes and address errors before they escalate into missed orders or downstream disruptions.
Investors are betting that this type of “physical AI” will become foundational infrastructure for modern logistics networks. “Gather AI is redefining how the physical world gets measured, understood, and operated,” said Keith Block, Founder and CEO of Smith Point Capital Management.“What Sankalp and his team have built isn’t just a better way to count inventory; it’s a foundational intelligence layer for the modern supply chain. We believe Gather AI will become the system of record for every warehouse, factory, and yard, and we’re thrilled to help accelerate that future.”
According to Gather AI, customers typically see a return on investment in under six months, driven by labor savings, higher inventory accuracy and fewer service failures. In some facilities, manual inventory work has been reduced by as much as 80%, while accuracy levels exceed 99%.
With the new funding, Gather AI plans to expand deployments across hundreds of additional sites globally while investing in predictive capabilities that move beyond visibility into anticipation, identifying issues before they affect service or inventory positioning.
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