While investors spent much of the spring concerned that frontier AI models from companies like Anthropic and OpenAI would consume the software industry, Dave Clark was closing a funding round for exactly the kind of enterprise software those models are supposedly going to replace.

Auger, the supply chain technology startup founded in Bellevue, Wash., by the former Amazon executive, has raised $50 million in Series B funding led by Eclipse, with existing investor Oak HC/FT also participating in the new round.

The round brings total funding to $150 million for the company, which has grown to about 130 employees and counts Meta’s virtual and augmented reality division, sports merchandise giant Fanatics, and consumer products maker Kimberly-Clark among its customers.

Clark’s view is that general-purpose AI can generate insights but can’t handle deeply specialized domains like running a supply chain. Making financial and operational decisions and executing them at the scale of big companies requires systems built on strong supply chain expertise — what Auger calls its ontology, essentially a detailed map of how supply chains actually work.

“Many a pure technology company died on the hill of supply chain over the last decade,” said Clark, the company’s CEO, in an interview this week. “You really need to understand the complexity and the contextual requirements.”

Auger sits on top of a company’s existing systems — ERP, warehouse management, transportation management, and demand planning tools — and unifies the data into a single operating layer. Rather than replacing those systems, it connects them, using AI agents and traditional optimization models to make decisions and execute them automatically, as much as possible.

For example, in a recent demo at the company’s Bellevue office, Clark showed how the system would handle a supplier missing a delivery commitment when there isn’t enough product to go around. Auger identifies the shortfall, determines which customers get priority, reallocates inventory, and pushes the updated plan back to the company’s existing systems.

Most supply chain software, Clark said, generates alerts and waits for a person to act. Auger is designed to make routine decisions on its own and flag the exceptions for human review.

“We’re not really a tool,” he said. “We’re really the new employee.”

At Fanatics, the sports merchandise company, Clark said about 85% of decisions in the process Auger manages are happening autonomously, with a goal of reaching the mid-90s soon. In addition to the customers it has named so far, Clark said another eight to 10 companies are in contract negotiations or pilot programs.

Clark spent 23 years at Amazon, rising to lead the company’s worldwide operations and later its worldwide consumer business. He left in 2022 and became CEO of Flexport, the freight forwarding startup, but that tenure lasted less than a year amid a turbulent period for the company.

He launched Auger in 2024 with a team that includes Leigh Anne Clark, his wife, who serves as co-founder and president of the company’s fashion and beauty division, focused on an industry Clark describes as one of the most wasteful supply chains outside of groceries.

Clark moved back to the Seattle area from Texas to tap the region’s talent pool, and raised a $100 million Series A from Oak HC/FT. The company quickly assembled a C-suite drawn heavily from Amazon’s senior ranks, along with leaders from Johnson & Johnson, Microsoft, and Salesforce, spanning supply chain operations, AI, data science, and product development.

In March, Auger was named a premier supply chain partner on Microsoft Fabric, the tech giant’s data platform. Auger’s product is built on Azure, and Microsoft sales reps can earn commission on Auger deals. Clark said the partnership has generated engagement but is still early.

Clark said Auger went out for the Series B early, before the company needed it, to avoid the distraction of fundraising during what he expects to be a busy fall of customer onboarding.

With the investment, Eclipse partner Jiten Behl joined the Auger board, which also includes Clark, president and CFO Alex Ceballos, and Oak HC/FT’s Matt Streisfeld.

Auger hasn’t disclosed revenue or other financial metrics, but Clark said the valuation was roughly double the level set by Auger’s initial round. “We didn’t shoot for the crazy astronomical valuation,” he said. “We sat at a place that we felt really comfortable with.”

That pragmatic approach extends to how Auger operates. In Bellevue, the company works out of an office it subleased after Microsoft vacated the space. Auger kept the desks, monitors, and chairs the tech giant left behind, furnishing its new offices for next to nothing.

But Clark’s ambitions for the company are anything but modest. He said Auger’s goal is to have half of U.S. GDP flowing through its platform by 2030, with revenue exceeding $1 billion.

“That requires a pretty steep curve to get there,” he said. “We’re not playing small.”

Venice.ai, a privacy-focused AI startup with strong Seattle ties, has raised $65 million in its first outside funding, valuing the 2-year-old company at $1 billion. 

The company positions itself as a private and unrestricted alternative to mainstream AI services, offering access to a range of open-source and commercial AI models. Venice says it doesn’t log or store users’ prompts and responses on its servers, keeping conversations on people’s own devices. It also strips out many of the content filters built into competing tools. 

The Series A round, announced Wednesday morning, was led by Dragonfly, a crypto-focused investment firm, with participation from North Island Ventures, Coinbase Ventures, Archetype, Morgan Creek, Liquid2 Ventures and Seattle-based Founders’ Co-op. 

The company was founded in 2024 by crypto entrepreneur Erik Voorhees, its CEO. Voorhees founded the crypto exchange ShapeShift and has long argued against heavy government regulation of cryptocurrency.

Seattle tech veteran and serial entrepreneur Jesse Proudman is Venice’s president, CTO and co-founder. The two met as classmates at the University of Puget Sound in Tacoma.

“We want Venice to be thought of in the consumer landscape on the same terms as a ChatGPT or an Anthropic,” Proudman said in an interview. “We want people to open their phones and have our app sitting alongside those apps.”

The case for privacy comes from how people are starting to use AI. As chatbots become go-to tools for sensitive matters — medical questions, legal issues, job negotiations, relationship advice — users hand over intimate details that accumulate in the databases of companies like OpenAI and Anthropic. 

That data, Proudman said, is only as safe as the company holding it.

“It only takes one breach, one disgruntled employee who is going through that data, a government subpoena, a change in government policy — and then all of that data no longer is private to you,” he said. “It can be health records, it can be legal questions, it can be job negotiations, it can be relationship advice.”

Venice’s answer is to create no central trove to breach or subpoena in the first place.

Marketing AI with fewer restrictions can make Venice more useful in some cases, but it also raises the misuse questions that lead mainstream services to build in guardrails in the first place. Proudman said Venice includes some safeguards to prevent abuse and illegal activity. 

The company nonetheless bills itself as an “AI safety company,” casting the surveillance of users’ thoughts — rather than the content of their prompts — as the greater danger. 

Proudman is based in Seattle, where he has spent more than two decades starting and selling technology companies. He founded cloud-computing company Blue Box, which IBM acquired in 2015, and crypto trading startup Strix Leviathan, acquired by hedge fund Parataxis in early 2025. Strix spun out Makara, a crypto investing startup, in 2021, and Betterment acquired Makara the following year. 

Proudman spent about three years as a VP at Betterment, where he started moonlighting on Venice in 2024 — building it nights and weekends before leaving to go full-time.

Venice says it reached 3 million users in April and turned profitable in the first quarter. 

“That hockey stick that we always hear about, and that I’ve spent 25 years trying to build companies to find, finally manifested,” Proudman said. 

Venice makes money through consumer subscriptions and paid access to its developer API. It also has its own cryptocurrency, the VVV token, which developers can buy and lock up to reserve a share of the company’s computing capacity instead of paying per use.

Proudman said Venice will use the funding to build its own data center infrastructure — owning the GPUs that power its service rather than renting computing capacity — and to invest in growth as it tries to establish itself as a mainstream consumer brand. 

The company has grown to about 45 employees, up from roughly 15 people a year ago, with six in Seattle. It operates as a remote team and doesn’t currently have an office. 

Whether Venice expands its Seattle footprint long-term may hinge on state politics. Proudman has publicly opposed Washington’s new 9.9% “millionaires tax” — a state income tax on household income above $1 million that was signed into law in March and takes effect in 2028 — and said he won’t stay in the state if it does. 

He’s pinning his hopes on a repeal campaign that backers are trying to get on the November ballot. 

“I love it here … Seattle is a unique and phenomenal place to build a company, and I’ve been building companies here my entire life,” Proudman said. “I want to see us continue to be competitive against the Bay Area.”