The rallying cry of “atoms, not bits!” — a phrase that reflects Silicon Valley’s increasing focus on physical manufacturing in contrast to digital products — escalated last week with news that Jeff Bezos is assembling a $100 billion fund to consolidate and automate factories.

However, automating factories is not solely a hardware issue. It is becoming increasingly reliant on advanced software and AI applications, and this transition is transforming the firms developing the infrastructure of the physical manufacturing sector.

Karthik Gollapudi, the CEO of Sift, a company based in El Segundo, California, whose tools facilitate the design and manufacturing of intricate machinery like spacecraft and automobiles, is sensing substantial changes on the horizon. He noted that these developments have altered his company’s direction in the past six months.

Gollapudi and his co-founder, CTO Austin Spiegel, launched the company in 2022 after their experience developing software tools at SpaceX that handled the enormous volume of telemetry data — real-time performance metrics streamed from sensors on physical components — during testing, production, and launch.

While most companies creating advanced machines utilize standard database tools or develop their own Python scripts, Sift identified the chance to offer businesses a top-tier solution. Their clients include United Launch Alliance, a prominent US rocket manufacturer, as well as other defense contractors, robotics, and power grid management startups.

Nonetheless, Gollapudi indicates that the onset of AI tools for data examination prompted a shift in his company. The tailored workflows that used to differentiate the company’s signature offerings have become essential in a landscape dominated by AI and deep learning models. Yet, the company’s talent in managing data infrastructure has unexpectedly gained significance.

“Our long-term vision of how we expected this to unfold over five years is actually materializing this year,” Gollapudi informed TechCrunch. 

This entails managing the significant data flow from modern software-heavy machines. Certain vehicles that the company collaborates with feature over 1.5 million sensors transmitting data simultaneously, in various formats and time intervals. 

The objective of organizing and archiving that data for AI usage is key for the company—”much of the value lies in making that machine-readable,” Gollapudi stated. For AI agents to make manufacturing decisions or analyze test data to identify potential issues, Sift aims to ensure that the data is accessible to them.

Jeff Dexter, the VP of software at Astranis, a satellite company utilizing Sift to oversee testing, manufacturing, and operations, remarked that robust data infrastructure is crucial for businesses like his that might conduct 10 million automated software tests daily. 

“Eventually, it becomes a situation where it’s costing us millions of dollars every month just to retain data,” Dexter expressed. “It’s essentially a question of whether this million dollars is well spent? With solutions like Sift, I don’t have to be concerned about the volume of data present.”

Gollapudi mentioned to TechCrunch that Sift secured a $42 million Series B in 2025 at a post-money valuation of $274 million, led by StepStone with contributions from GV (Google’s venture division), Riot Ventures, Fika Ventures, and CIV.

Dispute-tracking fintech Glimpse revealed on Wednesday that it has secured a $35 million Series A funding round, spearheaded by Andreessen Horowitz, with contributions from 8VC and Y Combinator.

Founders Akash Raju, Anuj Mehta, and Kushal Negi, who attended Purdue together, initially focused on a startup that specialized in Airbnb product placements. This venture was launched in 2020, but by 2024, the team shifted to a completely new concept: Glimpse, a platform designed to assist retailers in automating their financial deduction procedures. 

Last year, it completed a $10 million funding round, led by 8VC following the business pivot, which at that time was referred to as a Series A round. Now, they are designating the recent $35 million as a Series A and reclassifying their previous Series A as a seed round. To date, the company has garnered $52 million, including funds raised prior to their pivot.

“We ultimately recognized that we were missing product-market fit and opted for a significant pivot,” Raju stated regarding the earlier, unsuccessful initiative. “During this journey, we gained insight into the back-office operations of brands and the complexities of retail sales, which ultimately inspired us to create Glimpse as it stands today.”

They connected with their lead a16z investor through a shared founder acquaintance. “We developed a robust partnership as we expanded the business. We’re truly thrilled to collaborate with them in this next phase of growth,” he added.

Deductions represent the amounts a retailer detracts from what they owe a brand when processing an invoice. This is a standard practice and generally operates as follows: a brand bills the retailer, and the retailer compensates the brand. If the amount paid is less than the billed total, a justification is provided, such as if the goods were found to be damaged. 

Some deductions are legitimate, while others are deemed invalid; these invalid deductions can be burdensome to track and manage behind the scenes. “These inaccuracies are surprisingly prevalent,” Raju noted as the company’s CEO, adding that “a brand might send inventory correctly but still encounter charges for a short shipment.” 

“Teams typically log into various retailer systems, gather scattered documents, assess line items, reconcile with internal records, and manage disputes from start to finish. This challenge arises due to fragmented, unstructured data and siloed workflows across diverse systems and teams,” he described how the process generally unfolds.

If the brand fails to settle every invalid deduction, it may result in “consistent revenue leakage,” he remarked. 

Glimpse asserts it streamlines this process by examining deductions, identifying invalid ones, and filing disputes, thus aiding businesses in reclaiming funds they might have overlooked or lost. The platform’s AI agents access a retailer’s portal, retrieve and centralize all essential documents, and then categorize each deduction, Raju explained. Subsequently, the AI agents validate each adjustment against internal data (such as supply chain records and marketing calendars) to ascertain which deductions are legitimate and which are not. 

The company reported that it collaborates with over 200 retail brands, including Suave and its lip balm product Chapstick. 

“When discrepancies are detected, Glimpse automatically initiates disputes, monitors the process, applies recovered funds, and synchronizes everything back to the brand’s ERP,” Raju stated, emphasizing that the product connects across multiple systems. Besides the core enterprise resource planning financial software, it integrates with promotional calendars and retail platforms, significantly shortening the process to just days, he noted.

Despite Glimpse’s automation, Raju mentioned that his company maintains human oversight, “primarily to ensure outcomes,” he explained, like “following up on disputes to facilitate resolution and cash recovery, as well as ensuring quality control on critical activities such as classification and data extraction.”

The system becomes more adept each time a deduction is handled, continuously optimizing its classification, validation, and resolution processes. “In the long run, this fosters a compounding data advantage, where each new integration and client enhances the system’s intelligence and overall efficacy throughout the network,” he claimed. 

Others are also addressing invalid deductions with software solutions, like Revya and Confido.

“Our ambition is to serve as the AI infrastructure for CPG and retail brands, and this funding will assist us in advancing that ambition,” he concluded. 

Trucking startup Harbinger remains a relatively recent player in the market, yet the adaptability of its electric vehicle platform has enabled it to secure another client in a distinct sector. This time, Harbinger’s chassis will serve in emergency vehicles for the 70-year-old company Frazer.

The two firms disclosed on Wednesday that Frazer will manufacture ambulances based on the hybrid variant of Harbinger’s platform, as well as larger mobile healthcare units. Frazer will also engage with Harbinger’s newly launched energy storage division, introduced earlier this year in collaboration with Airstream.

This agreement exemplifies how companies like Harbinger are achieving success with electric and hybrid vehicles, despite challenges in the passenger vehicle market within the United States. Grounded, another Detroit-based startup, announced this week that it partnered with Colgate to create a small fleet of mobile dental care units.

The secret to Harbinger’s achievements lies in its versatile platform, according to co-founder and CEO John Harris in an exclusive conversation with TechCrunch. The straightforward truck chassis can be adjusted in length based on customer specifications, and Harbinger can integrate a range-extending combustion engine if needed. Although Harbinger has only been around for a few years, this singular platform now supports RVs (built with THOR Industries), FedEx delivery vans, a smaller box truck model, and ambulances, assisting the company in raising over $300 million to date.

“When you consider the step van and RV applications, we have three wheelbases, four different GVWR [gross vehicle weight ratings], and about four powertrain options, with four, five, [or] six battery packs, along with the hybrid across all of it. We maintain 99.5% parts commonality,” said Harris. “That’s the game changer.”

Frazer CEO Laura Griffin remarked to TechCrunch that transitioning to Harbinger’s hybrid powertrain — mainly electric but utilizing the gas engine to recharge the battery — was an obvious choice as it reduces her customers’ overall ownership costs and boosts their operational availability.

“We’re always on the lookout for innovations that can enhance the experience for our end users, typically municipalities, 911 services, and hospitals,” she stated. “They’re doing it in comparison to other medium-duty chassis, so it fulfills all of our requirements.”

Griffin indicated that Frazer will procure the battery-powered auxiliary power units from Harbinger, deploying them on both the new hybrid emergency vehicles and existing combustion models. These will substitute standard generators and enable first responders (or users of the mobile healthcare units) to power medical equipment in the field without draining a vehicle’s battery or combustion engine.

“In the rear of an emergency vehicle, like an ambulance, you can visualize there’s a significant amount of equipment, and all of the latest sophisticated tools tend to rely on power,” Griffin explained. “So we’re in search of abundant clean power sources that don’t have to be attached to the chassis.”

Harris anticipates this will develop into a lucrative business regardless of how many hybrid vehicles Frazer acquires, as the auxiliary power units remain valuable across various powertrains.

“It will lead to a quicker growth trajectory, since there are thousands of ambulances,” he stated. He is also exploring other sectors, particularly in Harbinger’s home state of California, where there are stricter regulations against gas generator usage.

“There’s considerable interest from individuals expressing that they don’t want a generator six feet from an operator for 12 hours a day; they’d prefer to save money with batteries and are eager to reduce emissions,” he noted.

The aspirations of countries and wealthy individuals regarding space call for improved power sources, and a new startup established by two PhDs from Stanford might have the solution. 

Arinna, launched by CEO Koosha Nazif and CTO Alex Shearer, announced on Wednesday that it has secured a $4 million seed funding round to create ultrathin solar panels from a novel material developed during their doctoral studies. 

The funding round was spearheaded by Spacecadet Ventures, with involvement from Anorak Capital and Breakthrough Energy Foundation; the company chose not to disclose its valuation.

Arinna, named after the Hittite deity of the sun and pronounced similarly to arena, anticipates having its initial products tested in orbit by the end of this year. Following the successful qualification of their photovoltaics in space, the company aims to construct a facility capable of producing the material at megawatt scale by 2028.

“We are developing qualification panels to send to our initial clients that will illustrate that these two-dimensional photovoltaics possess the efficiency and resilience to withstand space conditions,” Shearer stated. “We plan to substantiate this at a larger scale over the coming year, while simultaneously refining the necessary processes to manufacture each layer of our photovoltaic cells in a roll-to-roll format.”

Arinna specializes in solar cells tailored for spacecraft. In the era before SpaceX, when most satellites were custom-made, spacecraft utilized expensive yet durable solar panels made from rare earth materials. With the advent of mass-produced satellites, lower-cost silicon panels are now being employed, albeit they deteriorate faster due to cosmic radiation.

Instead, Arinna’s innovation is grounded in a new material — transition metal dichalcogenides, or TMDs, which are atomically thin semiconductors developed only in recent decades. The ultrathin solar technology from Arinna enables extremely flexible cells that the company asserts are both less expensive and more resilient than traditional space solar panels.

“Over the years, much of the solar advancement has been about squeezing out marginal percentage gains on familiar, existing technologies,” Ben Gaddy, a materials scientist and senior director at Breakthrough Energy, remarked to TechCrunch. “This represents a completely distinct category of materials.”

Nazif and Shearer crossed paths at Stanford while engaged in their doctoral studies. Nazif focused on materials that could be repurposed to fabricate photovoltaic cells akin to traditional semiconductors, while Shearer worked on methods for large-scale production of those cells. “Koosha was the visionary, and I’m the builder,” Shearer humorously noted.

The company anticipates its photovoltaics will be significantly more flexible than traditional panels and 32% more efficient. Furthermore, according to Shearer, Arinna’s technology will not necessitate protective coverings, can endure for 15 years in orbit, and can be produced in a matter of weeks.

These enhancements would be substantial advancements over current technology, provided the company successfully navigates its orbital testing campaign this year without unexpected challenges and can fulfill its mass production objectives. 

“From my experience with all the space companies we’ve backed, power poses a significant barrier, a bottleneck,” remarked Wiz Khuzai, a general partner at Spacecadet Ventures who led the funding round, to TechCrunch. “[Arinna] is set to unlock the next generation of power solutions in space.”