Ex-Tesla team raises $12.5M to put supply chains on autopilot

Atomic, a startup formed by former Tesla planners, has closed a $12.5 million Series A round to scale its agentic supply chain software that simulates scenarios to decide optimal inventory levels and locations. The Boston-based company emerged from stealth last year and says its software can both recommend actions and autonomously execute decisions for customers. The approach traces back to tooling the founders developed during Tesla’s 2018 Model 3 production ramp, when manual spreadsheets could not keep pace with rapidly changing planning needs. Atomic’s product now addresses similar complexity by modelling the many possible decisions in a supply chain and using AI to find efficient paths through that decision space. Investors in the new round include Klass Capital and Madrona Venture Group, and the company was incubated at DVx Ventures, founded by Jon McNeill, a former Tesla president who sits on Atomic’s board. Atomic also added longtime Tesla planning director Jeff Goodrich as its chief technology officer and third co-founder. Customers reported quick onboarding and measurable operational effects. Atomic says annual recurring revenue has increased fivefold since the start of the year, and the company counts large-scale users such as DoorDash — which Atomic’s backers say runs around 90% of its purchasing through the platform across hundreds of sites — and HelloFresh. For food-focused clients, Atomic’s software is used to reduce waste and spoilage, while the company is also working with consumer packaged goods, mobility and manufacturing customers.