Iterate.ai, recently named one of CRN’s “20 Hottest AI Software Companies,” has secured $6.4 million in funding to scale its AI-driven enterprise solutions. The round was led by Auxier Asset Management with participation from eBags veterans Peter Cobb, Mike Edwards, and Dave Zentmyer — marking a strategic reunion with Iterate’s CEO and co-founder Jon Nordmark.
Innovation at the Core
Iterate.ai stands out for its practical, enterprise-focused AI innovations. Its latest product, Generate Enterprise, is a no-code, on-device AI assistant built for secure environments. It can operate offline, tapping into Intel’s CPUs, GPUs, and NPUs to power AI workloads across the next generation of AI PCs.
This capability is supported by Iterate’s Interplay platform, a low-code AI environment that allows enterprises to rapidly deploy advanced use cases like OCR, RAG (retrieval-augmented generation), and AI-powered customer engagement. Clients such as Ulta Beauty, Circle K, MUFG, and e.l.f. Cosmetics already leverage Iterate’s tools to drive efficiency and differentiation.
Strategic Vision and Growth Plans
The new capital will be used to expand channel partnerships and accelerate the rollout of Generate Enterprise. Over the past 18 months, Iterate has forged deep collaborations with tech giants including NVIDIA, Intel, and Qualcomm, as well as distributors like TD SYNNEX — ensuring scalable, vetted access to enterprise markets.
With AI PCs projected to surpass 100 million units by 2025, Iterate aims to ride this wave with tailored solutions that work at the edge. The company’s future roadmap focuses on agent-based systems, secure vector search, and integrations with large-scale enterprise storage systems.
Leadership and Legacy
Iterate.ai’s leadership blends tech innovation with retail execution. CEO Jon Nordmark, who co-founded eBags in 1998 (sold to Samsonite after $1.65 billion in sales), brings deep e-commerce and startup experience. His co-founder and CDTO, Brian Sathianathan, is a former Apple engineer and patent holder on the first iPhone, where he was part of the elite Secret Products Group.
Backing them are influential retail and tech veterans:
Jeff Auxier, founder of Auxier Asset Management, and a longtime eBags board member, is providing both capital and financial stewardship.
Peter Cobb, co-founder of eBags and board director at Designer Brands (DSW), offers scale-up expertise in digital commerce.
Mike Edwards, a seasoned four-time CEO with roles at eBags, Hanna Andersson, Borders, and Staples, is contributing strategic insight and governance.
Dave Zentmyer, former SVP at Lands’ End, brings operational expertise and partner development acumen.
