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GrayMatter, a Los Angeles-based startup that tackles tough problems in manufacturing with AI-powered robots, has raised $45 million in a Series B funding round. This brings the total capital raised by the company to $70 million. The round was led by Wellington Management, with multiple new and existing investors participating.
Although robotic automation has been around for quite some time, with companies like Apple integrating it into their assembly lines, GrayMatter is innovating with “physics-informed AI.” This technology allows robots to self-program and manage high-mix, high-variability manufacturing environments. Since its launch in 2020, GrayMatter has grown significantly.
Traditional robots struggle with the variety and variability of parts in manufacturing. GrayMatter’s technology bridges this gap, helping companies that face up to two-year production backlogs. The company’s CEO and co-founder, Ariyan Kabir, highlighted that their solution addresses these high-mix manufacturing challenges.
The U.S. manufacturing industry is valued at $2.5 trillion but faces significant backlogs due to a shortage of skilled workers. There are around 3.8 million unfilled jobs, causing delays in meeting delivery deadlines. Even when workers are available, quality can be inconsistent. Kabir, who was part of the University of Southern California’s Center for Advanced Manufacturing, observed these issues firsthand.
In response, Kabir founded GrayMatter, focusing on robotic solutions for labor-intensive tasks such as surface treatment and finishing for a wide range of products—from football helmets to aerospace equipment. The company provides smart robotic cells where robots utilize its proprietary physics-informed AI, called GMR-AI, to perform tasks like sanding, buffing, and coating. Unlike traditional robots that need specific programming for each job, GrayMatter’s robots program themselves from high-level task descriptions, adapting their process parameters based on performance to execute tasks autonomously. This self-programming takes only a few minutes, after which the robots produce highly consistent results quickly. These cells also monitor their health to minimize failure risks.
GrayMatter’s physics-informed AI augments existing manufacturing process models and knowledge with experimental data to deliver precise results. It uses known physics-based models as constraints, ensuring the AI system doesn’t learn anything contradictory. For example, if increasing pressure on a sanding tool should increase deflection, the system enforces this constraint to avoid unnecessary testing.
Since its inception, GrayMatter has deployed twenty custom-made smart robotic cells across various sectors, including aerospace, defense, specialty vehicles, marine, metal fabrication, sports equipment, and furniture. These cells have processed over 7.5 million square feet of product surface area.
GrayMatter’s technology has become a critical part of the operations for many companies, driving a significant shift in manufacturing processes. According to Kabir, the company’s solutions work 2-4 times faster than manual operators and reduce consumable waste by 30% or more. For instance, one enterprise using their technology for sanding RV caps reduced the time needed from one hour to just six minutes per part.
Looking ahead, GrayMatter plans to use the new funding to expand its LA team and develop next-gen AI robotic cells for more use cases. The company aims to deliver on a strong product roadmap and meet growing customer demand by investing in go-to-market strategies, operations, product development, and engineering.
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