Two former Tesla executives, Michael Rossiter and Neal Suidan, have co-founded a new startup called Atomic, which aims to revolutionize supply chain management using artificial intelligence. The company has secured $3 million in seed funding from DVx Ventures, led by former Tesla president Jon McNeill, and Seattle-based Madrona Ventures.

Rossiter and Suidan, who both played key roles in Tesla's supply chain operations, drew inspiration from their experiences at the electric vehicle manufacturer. In 2018, Tesla struggled to scale up production of the Model 3 sedan, with CEO Elon Musk admitting that the company was weeks away from collapse. This near-death experience prompted Rossiter and Suidan to develop a new approach to supply chain management, which they have now brought to life with Atomic.

Atomic's AI-powered platform is designed to streamline inventory planning and reduce costs for businesses. By deploying its agentic AI with customers, Atomic claims to have already helped pilot customers cut inventory levels in half while maintaining a 99% in-stock rate. This balance is critical, as excess inventory can tie up working capital and increase risk, while insufficient stock can lead to lost sales and revenue.

According to McNeill, Atomic's early customers have seen inventory cost reductions of 20% to 50% across various industries, including consumer packaged goods, food and beverage, and apparel. The company's software pulls information from source documents, enabling inventory planners and supply chain teams to quickly simulate multiple scenarios, a process that would normally take hours or days.

Rossiter and Suidan pride themselves on their ability to get up and running with customers quickly, thanks to a flexible data model that can be applied to a wide range of businesses. This adaptability is crucial in today's uncertain market, where existing supply chain solutions are often ill-equipped to handle volatility.

Atomic's founders are not the first Tesla alumni to start their own ventures. Former CTO JB Straubel founded Redwood Materials, while former SVP Drew Baglino launched Heron. However, Atomic stands out for its focus on applying the lessons learned at Tesla to a specific industry problem, rather than simply leveraging skills and expertise in a new context.

Rossiter and Suidan's vision for Atomic is ambitious, with plans to support every company that sells physical goods. Their experience in building an end-to-end supply chain orchestration system from scratch at Tesla has given them a unique perspective on the challenges and opportunities in this space. As they look to scale Atomic, they are poised to make a significant impact on the supply chain management landscape.

In a market where uncertainty is the new norm, Atomic's AI-driven approach to supply chain management is well-positioned to help businesses navigate the complexities of inventory planning and optimization. With its $3 million seed funding in place, the company is set to accelerate its growth and make a meaningful difference in the industry.