Limitless Labs raises $20M to scale physical AI for precision manufacturing and CNC automation

AI has transformed how people write code, create content, and analyze data. Manufacturing remains a different challenge.

Factories still depend on experienced CNC programmers who spend years learning how to machine complex aerospace, defense, medical, and industrial parts. Much of that expertise lives in the heads of veteran machinists and engineers, creating a growing problem as the workforce ages and skilled labor becomes harder to replace.

That challenge has attracted investors to Limitless Labs, a Tel Aviv-based AI startup building what it calls a Physical AI platform for manufacturing.

Today, Limitless Labs announced it has raised $20 million in a Series A funding round co-led by Dell Technologies Capital and Square Peg. Existing investors Grove Ventures, Meron Capital, and Kinetica also participated in the financing.

The funding comes as manufacturers face mounting pressure to preserve decades of engineering knowledge. According to industry data cited by the company, nearly a quarter of the U.S. manufacturing workforce is 55 or older, and 409,000 manufacturing jobs remain unfilled. The shortfall could reach 1.9 million positions by 2033.

The fresh capital will support the company’s U.S. expansion efforts and continued development of its Physical AI Foundation Model. Limitless Labs plans to grow its commercial organization, invest in research and development, and advance its long-term goal of closed-loop CNC automation.

Founded in 2024 by David Priev, Assaf Peleg, and Shahaf Finder, Limitless Labs has raised $27.3 million to date. The company is headquartered in Tel Aviv and is expanding its presence in the United States as manufacturers seek ways to preserve expertise, reduce programming bottlenecks, and bring more automation into production environments.

The bet behind Limitless Labs is straightforward: if AI can learn how factories actually make parts, it could help manufacturers scale knowledge that today remains trapped in spreadsheets, workflows, and the experience of a shrinking pool of experts.

Israeli AI Startup Limitless Labs Raises $20M After Helping Manufacturers Cut CNC Programming Time by 50%

Limitless Labs is tackling that problem with software that operates directly inside the CAD/CAM systems engineers already use. The platform helps manufacturers capture programming knowledge, standardize best practices, and automate portions of CNC programming that have traditionally required significant manual effort.

Since emerging from stealth, the company says it has moved from pilot projects to production deployments with customers including Blue Origin, Cadillac F1, Sandvik, and Iscar. According to Limitless Labs, its software can reduce CNC programming time by up to 50%.

“The manufacturing world doesn’t just need more automation, it needs a better way to capture and scale the expertise that still lives inside the heads of a relatively small number of experienced machinists,” said David Priev, Co-founder and CEO of Limitless Labs. “We built Limitless Labs to work inside the CAD/CAM systems manufacturers already use, helping teams standardize best practices, reduce programming bottlenecks, and free senior programmers to focus on the hardest work, without giving up control. We believe the next major AI platform will be built for the physical world, and that starts with giving manufacturers a way to scale their best knowledge across every new part and every new engineer.”

At the center of the platform is the company’s Physical AI Foundation Model. Unlike large language models trained primarily on text and software code, Limitless Labs says its model is trained on manufacturing-specific data, including CAD geometry, machining operations, and the physics of metal cutting.

That model powers the company’s CAM Agent, which works inside software platforms such as Mastercam, Siemens NX, and PTC Creo. When engineers upload a CAD file, the agent can identify features, recommend tools, sequence operations, generate toolpaths, and assist with creating machine-ready programs.

Investors see the company as part of a broader shift in enterprise AI from digital workflows to industrial operations.

“Limitless Labs represents the next wave of enterprise AI, moving beyond digital workflows and into the physical world of precision manufacturing,” said Yair Snir, Managing Director at Dell Technologies Capital. “Their unique foundation model and the caliber of their production deployments gave us conviction that this team is building the defining platform for AI in manufacturing.”

The company’s progress has impressed some of its earliest backers.

“Eighteen months ago, we backed Limitless Labs’ vision that agentic AI could transform the factory floor,” said Lior Handelsman, General Partner at Grove Ventures and Co-Founder of SolarEdge. “What the team has achieved since then has exceeded expectations. They are combining deep technical innovation with practical software in a way that could reshape how the world’s most critical parts are made.”

Limitless Founders David Priev, Assaf Peleg, and Shahaf Finder (Image credit: Limitless Labs)