ATLANTA, GA, USA, May 27, 2025 – Toolpath, the company creating AI tools that optimize the machining business, announced closure of a strategic investment round led by industrial machine tool manufacturer and strategic partner Kennametal Inc. (NYSE: KMT). Existing Toolpath partner ModuleWorks also invested, deepening its partnership toward the eventual integration of the full range of ModuleWorks functionalities into the Toolpath platform. Additional investors in this round include Leaders Fund.
Investment by this group of manufacturing industry leaders validates Toolpath’s innovative approach to providing accessible, functional AI technologies that increase efficiencies, reduce mundane work, and solve real-world problems that are common in the machining business.
Toolpath’s software integrates AI into the CAM process, optimizing tool selection and toolpath strategies. Our platform intelligently analyzes machining processes and the parts a process will make, providing manufacturers insights to make better decisions about which jobs to quote, estimate costs accurately, and optimize machining operations. Our approach addresses critical workflow steps, from initial job evaluation to machining plan, including tooling and operations. Toolpath’s applied AI and proprietary Part Comprehension Engine empowers professionals at critical stages of the machining business, enhancing their work rather than replacing it—much like the auto-pilot has supported and reshaped the role of pilots in aviation.
“This partnership represents a bold step in our digital transformation journey,” said Carlonda Reilly, Chief Technology Officer of Kennametal. “Toolpath’s platform amplifies our industry-leading application engineering expertise through its intuitive, intelligent software. It’s a smart, scalable solution that brings the power of AI to the shop floor in a practical and impactful way.”
“The industry-leading caliber of these investors underscores that our AI-powered tools bring genuine, immediate value to machining businesses and manufacturers,” said Al Whatmough, Toolpath CEO. “Enabling shops to use modern technology to improve results for their customers, while increasing productivity and profits, is a vision we have in common with all our investors. It’s fantastic to all be rowing in the same direction.”
“Deepening our partnership with Toolpath reflects our shared commitment to accelerating innovation in AI-driven manufacturing software,” said Dr. Yavuz Murtezaoglu, Founder & Managing Director of ModuleWorks. “By combining our proven machining technologies with Toolpath’s advanced AI platform, we’re able to deliver powerful solutions into users’ hands faster. This investment naturally extends our mission to advance the manufacturing ecosystem through open collaboration, cross-industry partnerships, and software innovation.”
“Toolpath has shown itself to be effective and efficient at producing practical AI technology that solves the time-intensive, day-to-day challenges that bog down manufacturing,” said Stephen DeBacco, Managing Partner at Leaders Fund. “We find it truly inspiring to see Toolpath’s solutions in action, cutting hours of work down to minutes so machinists, estimators and CNC programmers can focus on the fine points of a project that really make a difference that customers see in the end product.”
This investment will fuel Toolpath continuing to expand its platform to assist shop owners, estimators and CNC programmers, as well as integrate it with existing, industry-leading tools, and take those tools to market.
About Toolpath
Toolpath is an AI-focused start-up focused on new solutions for the manufacturing industry. Our mission is to help manufacturers achieve greater efficiency and profitability through the practical application of artificial intelligence, machine learning, and decades of real-world experience. For more information, visit https://toolpath.com.
About Kennametal
With over 85 years as an industrial technology leader, Kennametal Inc. delivers productivity to customers through materials science, tooling and wear-resistant solutions. Customers across aerospace and defense, earthworks, energy, general engineering and transportation turn to Kennametal to help them manufacture with precision and efficiency. Every day approximately 8,400 employees are helping customers in nearly 100 countries stay competitive. Kennametal generated $2 billion in revenues in fiscal 2024. Learn more at kennametal.com. Follow @Kennametal: Instagram, Facebook, LinkedIn and YouTube.
About ModuleWorks
ModuleWorks is at the forefront of digital manufacturing software, playing a key role in enabling the efficient production of increasingly complex parts in an environmentally sustainable way. As a strategic partner to leading CAD/CAM vendors, CNC control makers, machine tool builders and cutting tool manufacturers, ModuleWorks develops software that powers solutions throughout the manufacturing industry which contributes to 16% of global GDP worth $16 trillion per year.
Founded in 2003, ModuleWorks has grown to over 250 employees and already invested 2000 person-years of software development in toolpath and simulation technologies that form the core of manufacturing processes. In the CAD/CAM area alone, ModuleWorks has a market share of 90%, enhancing the performance and quality of over 500,000 installed seats of CAD/CAM and CNC software worldwide. With a comprehensive portfolio of cutting-edge software components and the capacity to address emerging and niche technologies like AI, cloud, automation, additive, robotics and digital dentistry, ModuleWorks is committed to shaping the future of digital manufacturing with its partners, empowering the industry to Get There Faster.
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