Iterate.ai Secures $6.4M to Bring Secure, Scalable AI to the Edge of the Enterprise

Iterate.ai, a fast-growing player in the enterprise AI space, just brought in a $6.4 million round of funding, led by Auxier Asset Management. Joining in were some well-known names—Peter Cobb, Mike Edwards, and Dave Zentmyer—who previously served as board members at eBags, an online retailer co-founded by current Iterate CEO Jon Nordmark. Their ongoing partnership speaks to the trust and long-term vision these leaders share from their eBags days.

What sets Iterate apart is how early the team saw the significance of artificial intelligence for business. Back in 2015, well before AI was the industry buzzword, they had already rebranded with “.ai” in their name. That’s not just a marketing move—they’ve been building real, practical tools all along. Two of their headline products are Generate Enterprise and Interplay. Generate is a privacy-focused AI assistant that runs directly on user devices, while Interplay is a patented drag-and-drop development platform for building AI workflows.

Peter Cobb, one of the investors, highlights that Iterate’s strength lies in delivering useful technology—not just “AI” for the sake of it, but AI that solves genuine day-to-day enterprise problems. For instance, Generate can work offline without the cloud, a big deal for industries with sensitive data or unreliable internet. By handling AI processing on devices like AI PCs or point-of-sale terminals, companies can reduce costs, increase privacy, and cut latency—a real advantage for healthcare, government, and retail.

Interplay, meanwhile, is designed for building AI solutions, not just simple chatbots. These workflows can include automated decision-making, tap into company databases, or integrate with existing APIs. The platform is deeply versatile, supporting a wide range of machine learning models, and it incorporates a vector database for enhanced search capabilities and RAG (Retrieval-Augmented Generation) pipelines. This technical backbone is overseen by co-founder and CTO Brian Sathianathan, who was part of Apple’s original iPhone team.

Investors like Mike Edwards, with experience at eBags and Staples, point out Iterate’s rare grasp of enterprise needs—offering AI tools that deliver measurable return on investment, as seen with customers like Ulta Beauty, FUJIFILM, and Circle K. Dave Zentmyer, another industry veteran, emphasizes Iterate’s achievements in collaborating with major technology partners such as NVIDIA, Qualcomm, and TD SYNNEX, which cements the company’s ability to deliver at scale.

With growing pressure on businesses to keep data private and comply with national data sovereignty laws, Iterate’s architecture stands out: their platforms can be fully deployed on-premises, use air-gapped setups, and put role-based access controls front and center. That means companies keep direct control over AI operations—a significant departure from cloud-only systems. And since not every use case needs or wants to rely on the cloud, this flexibility is increasingly valuable.

Analysts expect over 100 million AI PCs to ship by 2025, reflecting the rapid move toward edge-native AI systems. That’s a trend that fits neatly with what Iterate has been building: AI tools that are secure, fast, and can be integrated directly into companies’ existing environments.

All these developments come together with Iterate’s broader philosophy: open models, modular architecture, and enterprise-controlled AI. With this $6.4 million investment, the company is poised to push even harder, aiming to make artificial intelligence truly accessible, secure, and seamlessly woven into the backbone of modern business.

To read the original article, visit: Unite.AI.