U.S.-based Gather AI has closed a $40 million Series B funding round to expand its Physical artificial intelligence (AI) Platform, a system that uses autonomous drones and AI-powered cameras to give warehouse operators real-time visibility into their inventory.
The round was led by Smith Point Capital Management, a VC firm founded by former Salesforce co-CEO Keith Block, and brings Gather AI’s total funding to $74 million since the company launched in 2017.
What the Gather AI Platform Solves
Gather AI’s core product sits at the intersection of computer vision, machine learning, and drone hardware. Rather than building specialized equipment from scratch, the company installs its proprietary software onto consumer-grade drones and cameras already attached to material handling equipment like forklifts, pallet trucks, and auto pickers, all of which are already operating inside a warehouse.
These devices continuously scan aisles, read barcodes, lot codes, and expiration dates, log inventory counts, and flag damaged goods or misplaced stock. The data then feeds directly into a customer’s existing warehouse management system (WMS) and ERP platforms with no additional infrastructure required. The company calls this “dock-to-dock intelligence.”
According to Gather AI, customers achieve 99.9% inventory accuracy, reduce manual labor tied to cycle counts by up to 80%, and see a return on investment within six months of deployment.
For large-scale logistics operations, the gap between what a warehouse management system says is happening and what is physically occurring on the floor has long resulted in costly errors. Traditional systems depend on manual scans and scheduled cycle counts, which create delays, inaccuracies, and blind spots that ripple into fulfillment, labor planning, and customer service.
“For too long, supply chains have operated with a fundamental blind spot: they couldn’t see what was actually happening on the floor,” Sankalp Arora, CEO and Co-Founder of Gather AI said in an announcement. “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.”
Funding Round and Investors
Smith Point Capital’s Block acknowledged he understood the company’s direction quickly when the two sides met at a logistics conference last year. “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,” Block said.
Alongside Smith Point, the round included participation from Bain Capital Ventures, Tribeca Venture Partners, Bling Capital, Dundee Venture Capital, XRC Ventures, and The Hillman Company.
The company reports that bookings grew 250% over the past year and that its operational footprint doubled over the same period. Gather AI currently employs about 60 people and serves enterprise customers across logistics, manufacturing, food and beverage, retail, aerospace, and automotive sectors.
The platform is now the operational standard as it provides services to major logistics and manufacturing enterprises, including GEODIS, NFI Industries, Kwik Trip, Axon, dnata, Barrett Distribution, and Langham Logistics.
What the New Capital Will Fund
Gather AI plans to use the Series B funding to expand deployments to hundreds of additional facilities across North America, Europe, and Asia.
The company is also investing in predictive capabilities designed to move the platform beyond real-time visibility toward anticipating inventory problems before they affect operations, what Arora describes as a move from reactive to proactive warehouse management. Engineering and customer success teams will also be scaled to support enterprise-wide rollouts.
