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Noetive launches with $41M to bring self-improving AI to factories and logistics

Noetive launched with $41 million to bring self-improving AI to factories and logistics, and early partners are using it.

Chief Executive Amir Frenkel said in the launch announcement that most AI products to date "were designed for information work living on the internet." Running a plant or a distribution network means coordinating materials, machinery, labor and suppliers that never stop changing, he said. Noetive said the decisions tying those together still depend on data from siloed systems that were never built to coordinate an entire business.

Noetive describes its answer as an "intelligence of record." At the core is a self-improving AI model the company calls a brain. Agents built on the model run on top of tools a customer already has and take on difficult operational problems end to end, according to Noetive. Each deployment is intended to make the model more capable. Physical conditions reach it through a multimodal sensing pod that Noetive designs itself.

Food and beverage manufacturer Steuben Foods Inc. is an early partner. Its chief executive, Menachem Katz, said production planning has always been one of the most time-consuming parts of running the business because even small changes ripple across the operation. Noetive now reads both Steuben's system data and conditions on the factory floor, Katz said. He said work "that once happened monthly and took a week of planning now happens daily and takes minutes."

Frenkel worked at Meta Platforms Inc. as a vice president for nearly a decade and has also held leadership roles at Alphabet Inc. and Amazon.com Inc. The rest of the team comes from those companies and from Fortune 500 businesses, and includes researchers who have worked on foundation models. The funding will pay for research into self-improving AI for physical operations, Noetive said. Field testing happens with a curated group of design partners, and the company is recruiting AI researchers and full-stack engineers.

Eclipse Ventures led the round. Bloomberg reported in April that Eclipse had hired Frenkel from Meta as its first chief AI officer. Noetive took shape inside Eclipse, with the firm helping recruit the founding team. Other backers include Craft Ventures Management, The Westly Group, Swish Ventures, Factory, Incite Ventures, Gigascale Capital, Operator Partners and Liquid 2 Ventures. Nest co-founder Matt Rogers founded Incite, and Gigascale was started by former Meta Chief Technology Officer Mike Schroepfer. Individual investors include Meta Chief Technology Officer Andrew Bosworth, Airbnb Inc. Chief Technology Officer Ahmad Al-Dahle and the three co-founders of Decart.AI Inc.

Eclipse founder and Chief Executive Lior Susan said the $30 trillion physical economy "has largely been left behind" by AI. "We saw an enormous opportunity to change that, and built Noetive to go after it," he said.