AI-powered industrial robotics startup Dexterity raises $95M

Dexterity Inc., a startup that develops industrial robots powered by artificial intelligence agents, has raised $95 million in funding to enhance its technology.

Bloomberg reported the investment today. The round, which included contributions from Lightspeed Venture Partners and Sumitomo Corp., reportedly gives Dexterity a post-money valuation of $1.65 billion. That’s up from the estimated $1.4 billion the company was worth following its previous raise in 2021.

Redwood City, California-based Dexterity develops robots that can automate merchandise processing tasks at facilities such as logistics warehouses. The company says that its systems are powered by hundreds of AI agents that each focus on a relatively narrow task. An AI agent is a neural network that can perform actions with little to no human input.

According to Dexterity, the agents that power its robots are coordinated by a software system dubbed Arbiter. The system prevents so-called edge case errors, mistakes that an AI makes when it encounters an unfamiliar situation or task. Arbiter also promises to mitigate other issues such as hallucinations.

According to Bloomberg, Dexterity is currently developing an industrial robot dubbed Mech. The machine features two robotic arms and a mobile base that allows it to move between different sections of an industrial facility.

On its website, Dexterity states that Mech can carry more than 130 pounds. The system has an arm span of more than 16 feet that allows it to perform complex merchandise processing tasks. An e-commerce company, for example, could use a fleet of Mechs to load and unload delivery trucks.

Dexterity optimized the robot for demanding environments. According to the company, Mech can operate at temperatures ranging from 32 to 122 degrees Fahrenheit with up to 90% humidity. The system also lends itself to use in altitudes of up to 5,000 feet.

Dexterity is promising a mean time between failures of 10 years. When a malfunction occurs, fixing the Mech is relatively simple because some components can be swapped in the field. That speeds up the troubleshooting workflow, which in turn allows companies to recover from robot outages faster.

Dexterity provides its robots alongside a digital twin platform. Customers can use the software to simulate the factories, fulfillment centers and other locations where they’ve deployed automation equipment. Dexterity says that such simulations make it easier to measure the productivity impact of robotic arms.

Bloomberg reported today that the company will use its new funding to enhance its technology and hire more employees. The investment comes a few weeks after word emerged that Figure AI Inc., a competing robotics startup, is seeking to raise $1.5 billion at a $39.5 billion valuation. The company offers a humanoid robot called the Figure 02 that includes custom AI models developed in collaboration with OpenAI. 

Photo: Dexterity