Funding

Noetive Raises $41M to Deploy Self-Learning AI in Manufacturing and Supply Chains

The industrial AI startup launched today with backing from Eclipse Ventures and others, deploying autonomous agents that improve over time by learning from factory floors and logistics operations.

·3 min read
Noetive launches with $41M to bring self-improving AI to factories and logistics
Noetive launches with $41M to bring self-improving AI to factories and logistics

Noetive, an industrial artificial intelligence company, announced its formal launch today with $41 million in seed funding. The startup's platform observes how manufacturing plants and freight operations function in real time, and it already counts design partners across manufacturing, logistics, energy and data center sectors.

Most existing AI systems "were designed for information work living on the internet," according to Chief Executive Amir Frenkel. Operating a factory or distribution network requires managing materials, equipment, staff and supply chains in constant flux. Noetive contends that operational decisions still depend on fragmented data sources that lack the coordination needed to optimize an entire enterprise.

The company's core offering is what it terms an "intelligence of record"—a self-improving AI model it calls a brain. Agents built on this foundation layer onto existing customer systems and tackle complex operational challenges from end to end. Each real-world deployment strengthens the underlying model. A custom multimodal sensing pod that Noetive manufactures feeds physical conditions into the system.

Steuben Foods Inc., a food and beverage producer, serves as an early partner. Chief Executive Menachem Katz noted that production planning has traditionally consumed significant time because minor adjustments cascade throughout operations. With Noetive reading both Steuben's internal data and real-time factory conditions, Katz reported that work "that once happened monthly and took a week of planning now happens daily and takes minutes."

Frenkel spent nearly a decade as a vice president at Meta Platforms Inc. and previously held senior positions at Alphabet Inc. and Amazon.com Inc. The founding team draws from those same organizations and from Fortune 500 companies, with members who have contributed to foundation model research.

The capital will fund research into self-improving AI systems for physical operations. The company is conducting field trials with a selected group of design partners and is actively hiring AI researchers and full-stack engineers to grow its workforce.

Eclipse Ventures led the funding round. Bloomberg reported in April that the firm had recruited Frenkel from Meta to serve as its first chief AI officer. Noetive was incubated within Eclipse afterward, with the venture firm assisting in assembling the founding team.

Additional investors participating in the round include Craft Ventures Management, The Westly Group, Swish Ventures, Factory, Incite Ventures, Gigascale Capital, Operator Partners and Liquid 2 Ventures. Matt Rogers, co-founder of Nest, established Incite Ventures. Mike Schroepfer, former Chief Technology Officer at Meta, founded Gigascale Capital. Individual backers comprise 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 stated that 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.