“We’re Not Just Automating Warehouses—We’re Driving the Future of Smart Robotics” – Inside OSARO’s Global AI Revolution

Derik Pridmore and Michael Kahane co-founded OSARO in 2015 with a vision to reshape industrial automation by tackling some of the most tedious and physically demanding tasks in logistics. They saw the potential of artificial intelligence to optimize warehouse operations and solve inefficiencies within the sector. By integrating AI-driven robotics, OSARO aimed to automate key processes like piece-picking and fulfillment, offering a new level of precision and efficiency to businesses worldwide.

Launched in the tech hub of San Francisco, OSARO quickly expanded its focus beyond local boundaries. From its early days, the company concentrated on using reinforcement learning, a branch of AI that allows robots to improve their performance through trial and error. This innovative approach was ahead of its time, as many in the logistics industry were only beginning to recognize the potential for AI to automate complex, repetitive tasks. As businesses began seeking out ways to optimize operations, OSARO’s technology attracted attention for its ability to address real-world challenges in warehouse settings.

Robotics-as-a-Service (RaaS) Model

OSARO’s Robotics-as-a-Service (RaaS) offering provides a flexible, scalable solution for businesses seeking to automate without making large upfront investments. With an annual fee that covers access to robotics technology, maintenance, and support, OSARO’s RaaS model allows companies to scale their automation efforts as needed. The service offers predictable costs, expert guidance, and continuous updates, making it an attractive option for businesses aiming to future-proof their operations.

OSARO’s RaaS solution is designed to meet a range of needs, from piece-picking in e-commerce to depalletizing in warehouses. Their robots use AI-powered vision and control software to handle complex tasks and adapt to new SKUs without manual reprogramming.

The Zenni Optical Collaboration

One of OSARO’s most successful implementations has been with Zenni Optical, a leading online eyeglass retailer. In 2023, Zenni deployed three OSARO Robotic Bagging Systems at its Novato facility, achieving an 80% increase in throughput, with robots processing up to 410 eyeglasses per hour. The accuracy rate improved to 99.9%, reducing errors from 20 per 100,000 to fewer than 3 per 100,000.

The collaboration resulted in a 50% boost in overall productivity, with the system reducing processing steps from five to two. OSARO’s robots, powered by the company’s SightWorks software, seamlessly integrated with Pregis Sharp automated bagging machines, Cognex scanners, and other components, demonstrating their versatility in complex fulfillment environments.

Building AI-Driven Robotics

At the core of OSARO’s success is its AI-powered technology, particularly the OSARO SightWorks™ machine-learning vision and control software. This system enables robots to identify, pick, and place items with remarkable accuracy, whether dealing with fragile goods or awkwardly shaped packages. From e-commerce fulfillment centers to large industrial warehouses, OSARO’s robots are built to handle the complex logistical problems that arise in these environments. One of the company’s standout innovations has been its piece-picking solutions, designed to handle high SKU inventories and intricate packaging, significantly improving warehouse efficiency.

Another key advancement is OSARO’s goods-to-robot (G2R) applications, which streamline warehouse operations by automating the transfer of items to robots for picking and sorting. These solutions help businesses reduce errors, increase speed, and better manage large volumes of products.

Funding the Future

OSARO’s unique approach to AI and robotics quickly caught the attention of investors. Just months after its founding, OSARO secured its first significant backing from Pegasus Tech Ventures, through a fund co-managed with Japan’s Innotech Corporation. This early investment allowed the company to grow its team, enhance research and development, and validate its technology in real-world industrial environments.

By August 2021, OSARO had completed a Series C funding round led by Octave Ventures, raising $30 million and bringing its total funding to $67.5 million. Other key investors included J17 Capital, Tomales Bay Capital, and Founders Fund. This funding has been instrumental in driving OSARO’s global expansion and continued technological advancements.

Strategic Partnerships and Global Expansion

A major factor in OSARO’s rise has been its ability to form strategic partnerships. Early on, the company partnered with Innotech Corporation, which began testing OSARO’s technology in Japan. This collaboration proved pivotal, leading to OSARO’s entry into the Japanese market and validating its robotics systems in real-world applications.

In 2024, OSARO strengthened its global footprint by partnering with Canon U.S.A. The partnership brought together Canon’s advanced sensor technology and OSARO’s AI-driven robotics to create a robotic bagging solution for fulfillment centers. This system, integrating Canon’s force-torque sensors with OSARO’s pick-and-place software, is designed to automate labor-intensive processes, improving both efficiency and safety.

Innovating Warehouse Operations

Among OSARO’s most impactful innovations is its Robotic Depalletization System. This technology addresses one of the most hazardous warehouse tasks—unloading heavy, mixed-case pallets. By using OSARO’s advanced AI-driven SightWorks™ software, robots can assess and handle boxes of various shapes and sizes, automating a labor-intensive and error-prone process. According to Pridmore, this solution not only improves warehouse safety but also delivers up to 40% cost savings compared to manual labor. As industries face ongoing labor shortages, particularly for high-risk jobs like pallet unloading, OSARO’s technology provides a timely and valuable solution.

Another key offering is OSARO’s Robotic Kitting System, which automates the assembly of product kits—a process that is in high demand for subscription services. Whether handling cosmetics or health products, the system enhances efficiency by streamlining what has traditionally been a manual, error-prone process.

Patented Technology and Comprehensive Support

In addition to its core products, OSARO holds multiple patents, including for Reinforcement Learning Using Confidence Scores and Computerized Imitation Learning from Visual Data with Multiple Intentions. These patents reinforce OSARO’s leadership in the AI and robotics space, showcasing the company’s commitment to continuous innovation.

To ensure the success of its clients, OSARO also introduced Hypercare™, a comprehensive customer support program that offers real-time assistance and continuous optimization of robotic systems. This proactive approach helps businesses navigate the transition to full automation, reducing risks and enhancing long-term outcomes.

Looking Ahead

OSARO’s journey is far from over. With plans for global expansion and a focus on developing more applications for its AI-driven platform, the company is well-positioned to lead the next generation of industrial automation. As Brent Barcey, OSARO’s SVP of corporate development, notes, “Our partnerships with companies like Canon have unlocked new opportunities for growth. We’re not just automating warehouses—we’re driving the next wave of smart, scalable automation solutions.”

From its San Francisco roots to deploying robots across seven countries and five continents, OSARO has become a global force in AI-powered robotics. With its focus on innovation, strategic partnerships, and robust customer support, OSARO is poised to continue reshaping the logistics landscape for years to come.