Dexterity's Bet on Robots That Can Handle an Unstructured World

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Overview

Michael Patrick Perry, Dexterity's VP of Marketing, returned to the Manufacturing Happy Hour podcast for a third appearance. Host Chris recorded the conversation on January 9, 2024, at the company's Redwood City headquarters, the day before a listener event at Bare Bottle Brewing. The central question was what has changed in robotics in the two-plus years since their last conversation. Perry's answer is that the industry is moving from robots that can go places to robots that can manipulate the physical world. They argue that a software-first approach is what lets one robot system spread across many warehouse tasks and many kinds of customers.

19 min read

From Mobility to Manipulation

Chris opened with a theme from their earlier conversations: Perry's attraction to transformational change. Perry had worked on drones at DJI and on the quadruped Spot at Boston Dynamics. They described both of those revolutions as being about mobility. Robots could reach places that previously seemed inaccessible, whether through the air or across rough terrain.

Dexterity, in Perry's framing, sits at the front of the next shift: robots that physically interact with the world, touching and moving things. The company's idea combines multiple levels of intelligence so that a robot doesn't just pick something up and drop it off. It can solve problems, and when it fails, it tries again with a new approach, for example by working out how to stack items stably. Perry said this was still fairly new in the industry two years ago. Only in 2023, they said, did more companies begin taking a similar approach. They pointed to Tesla's Optimus as an example of the same idea. A robot in an unstructured world has to do more than walk through it; it also has to decide things like which plant to water and how much. Perry described those decisions as far more complicated than what robots could previously handle.

Why the Robots Stack Boxes Like Bricks

Before recording, Chris toured the facility and watched robots loading a truck. He asked why the boxes were being stacked the way they were. Perry explained that the robots build interlocking "T" junctions, laying boxes the way bricks are laid, rather than stacking them in single columns.

The reasoning is practical. When a truck starts and stops, columns of boxes tend to fall over, and a heavy box on top of a smaller one can crush it. Brick-style layering spreads the weight and makes the wall more stable, so it doesn't collapse on itself in transit. Perry noted that anyone trained to load trucks learns this as standard operating procedure. If you simply told a robot to stack boxes in a trailer as densely as possible, it might default to columns. Because Dexterity knows the customer's requirements, it can train its AI to solve the problem in that specific way, so the robot fits into the customer's existing workflow.

A Startup Speakeasy in a Strip Mall

Chris noted that Dexterity's headquarters is an unusual startup location. The company has taken over much of a strip mall. It started in an old auto shop, and the interview itself took place in a former dollar store. The company has expanded into a former Kmart for testing and engineering, and it also occupies an old indoor-soccer equipment store. Perry said families still sometimes show up looking for shin guards and have to be sent a few blocks down. The space next door used to be an antique clock repair shop, which Perry found fitting since the team tinkers with older robots there. Chris called the setup a "startup speakeasy": from outside it doesn't look like a startup office until the door with the Dexterity "D" opens.

Headcount has grown with the space. Perry said the company had about 100 people at the time of their first conversation, around when Dexterity had just raised its Series B, and is now "pushing 260," spread across the U.S. and now also in Japan and Taiwan.

Bread Packing as a Deliberate Stress Test

Asked how the business itself has scaled, Perry went back to the company's first success in bread manufacturing and distribution. They said Dexterity chose bread packing because it was one of the hardest tasks the team could imagine, a way to stress the full scale of the robotic system.

Bread packing requires much more than picking and placing. Items must be handled delicately. Perry joked that robots "love to turn bread into pancakes." Dexterity's sense of touch lets the robot pick up one, two, or three loaves at a time, place them in a tray, and gently nudge them so the tray space is filled. Fleets of robots work together on rails, moving up and down and coordinating so they don't block each other. When one robot can't pick something up alone, two robots work together on bimanual manipulation. Perry described all of these as pieces of the Dexterity AI platform: vision systems, touch sensing, planning, stacking, and more. That first build brought them together.

One Technology Core, Many Warehouse Applications

The company then took those individual components and recombined them for other tasks. Perry described how:

  • Package induction: The vision capability and the dual-robot collaboration are used to have two robots grab messy flows of packages and place them onto a sorter belt at 2,000 picks per hour.
  • Palletizing: The next version of the stacking and tray-optimization logic is used to build pallets.
  • Truck loading: Perry said "a lot of that same code" is what the company used to start working out how to load trucks.

The result, in Perry's account, is a core technology that now covers everything from inbound to outbound in the warehouse distribution cycle. What excites them most is the difference from the early days. The bread system was bespoke to one customer and its particular challenges. Now the same solutions are deployed at multiple customers across industries. Perry said the palletizing/depalletizing system is running with a retailer, a third-party logistics provider, and a manufacturer. According to Perry, it gets up and running at a customer site in about 48 hours because it doesn't require much integration. It learns alongside the customer's system as it goes into production and ramps to full production capacity within about a month.

Perry put the timeline at roughly three and a half years, with the first bread system installed around 2020. They tied this directly back to Chris's opening question: the transformation, as they see it, comes from taking a software-first approach. The hardware is largely available already: six-degree-of-freedom robotic arms, camera systems (which Perry said have been somewhat harder to obtain recently), powerful and affordable GPUs, suction and pneumatic grippers, and force sensors. Unlocking all of those components through one software framework, they argued, is what drives rapid change.

Surprises: More Verticals, and Robots That Do Whole Jobs

Chris recalled an earlier story from Perry's time at Boston Dynamics. Spot had been expected to serve utility applications, and it turned out to be well suited to manufacturing inspections. He asked whether anything comparable had surprised them at Dexterity.

Perry was careful about what they could share, but named two things. First, the number of verticals where the technology applies has far exceeded expectations. The team originally pictured manufacturers doing end-of-line work, third-party logistics providers in the middle, and retailers getting goods to customers. Looking "beyond the horizon," Perry said, there are many other verticals where it could help with material-handling challenges. They deliberately left that vague.

The second surprise is a shift from single-task automation to what Perry called full-task automation. Depalletizing on its own means grabbing an item from a pallet and moving it to a conveyor, over and over. Adding barcode scanning during depalletizing adds more value. Late last year, Dexterity introduced a print-and-apply solution. In a warehouse, this job can take one to three people, or one person doing three tasks: depalletize items, apply labels (sometimes with a handheld gun), and repalletize. Because the system can both depalletize and palletize and do other steps in between, Dexterity built one robot system that depalletizes, applies a label, and repalletizes, at what Perry described as basically human parity in speed.

Perry acknowledged this might sound like a boring example. What makes it notable, they said, is that one robot does three tasks. Normally you'd expect robots plus conveyance and several other pieces of equipment to be needed. Here the solution is one robot and a labeler. Chris connected this to the software point: three tasks handled by one robot, where in the past it might have taken three robots each repeating a single task.

Decision-Making Versus "Dumb Automation"

Chris noted that the truck-loading robots use an algorithm to decide where each package should go. Perry agreed and contrasted this with what they called "quote unquote dumb automation." That kind of automation just does what it's told. It can work if every box has a known size, shape, and weight, but it requires heavy upstream optimization for the roughly 3,000 packages going into a trailer. Some companies are investing in that kind of full end-to-end automation transformation. Perry said most companies lack the capex for it. The question Dexterity is trying to answer is how robots can slot into an existing workflow without the customer spending tens or even hundreds of millions of dollars.

What "Democratizing Robotics" Means in Practice

Chris brought up the mission of founder and CEO Samir, who had been on the show before, to democratize robotics. Perry said many initial customers, or at least those who have spoken publicly about the work, include some of the largest names in parcel distribution and retail. What excites those customers is the same thing Perry sees as exciting for the industry: flexible automation that fits into existing workflows without customers changing what they do to accommodate it. The system can move from one site to another week to week, or even within the same shift.

Perry laid out the implications. Deployment times are much shorter, and there is much less upfront investment in infrastructure, software integration, and the other things traditional automation usually needs. That in turn opens up brownfield sites and much smaller companies that can't afford tens of millions of dollars for an automation project. Such a company can deploy a point solution for the single most painful task in its warehouse within 24 to 48 hours instead of gutting the warehouse. Chris summarized the two drivers as quick deployment and flexibility.

Building a Brand for the Right Audience

Chris then turned to Perry's marketing role, asking how Dexterity has grown as a brand since Perry joined in 2021. Perry turned the question around, saying Chris's outside perception mattered more. Flooding your own channels with your message, they said, mostly means hearing your own echo back. Chris said he hadn't heard of Dexterity before first speaking with Perry, but now sees the company around the industry regularly and regards it as a key player in robotics and warehousing.

Perry said the brand has been a challenge compared to their previous employers. Boston Dynamics and DJI were "the easiest cold call in the world." Anyone asked whether they want to talk robots with Boston Dynamics says yes. Dexterity isn't in that position, and Perry has considered whether it needs to be. Given the company's focus on executing with the resources and investment it has, and on being judicious with them, Perry concluded it's less important to be in front of everybody than in front of the right people. The strategy is to build targeted awareness among the people who stand to benefit most from the technology right now. The hope is that success eventually lifts the brand as a whole.

Chris praised the name "Dexterity" as a one-word description of what the company does: giving robots more dexterity. Perry said the engineers think of it that way. From a marketing perspective, though, Perry hopes the message is that Dexterity doesn't sell robots or software. It gives customers the flexibility to do whatever task matters most in their operation. The business outcome is the dexterity to get the job done.

AI in Marketing: Custom Experiences and the "Blinking Cursor"

Asked for advice for marketing-minded manufacturing leaders, Perry pointed to the AI revolution. They said it affects every industry, marketing and sales included. The shift they see is away from "spray and pray" and toward understanding the customer and creating a custom brand experience for them. Dexterity can produce messaging materials, microsites, emails, and even internal newsletters for specific customers that explain how the company can help them. It can also equip internal champions at those customers to tell the rest of their organizations about the partnership.

Perry contrasted this with five years ago. Distribution was already frictionless, but creating each individual piece of content was hard. Now it's possible to show how the offering applies to a particular customer's workflow and to build a custom site that stack-ranks what matters most based on that customer's priorities.

On personal use of AI tools, Perry described the "blinking cursor problem," staring at a blank page. AI provides a first draft. Perry said it's sometimes not even a great one and they end up rewriting everything. But it lets them start in "editing brain" rather than "creating brain," and they said their creating and critical brains often conflict too much to work quickly. For scaling custom messaging, or even writing a press release, that saves significant time. Chris said he'd adopt the term. He described using AI as an idea generator for podcast episode titles, especially when recalling an interview weeks later, while noting that the output often feels generic and "a little robotic" and needs editing. He still finds editing easier than creating from scratch.

"Sense, Think, Move": How Dexterity Uses AI in Its Robots

Turning to AI in the product, Perry noted that the company's website is dexterity.ai "for a reason." They stressed, though, that Samir and the founding engineers would say AI is not a silver bullet on its own. It works well alongside traditional controls and standard computer vision approaches. Combining those pieces is what solves complicated problems.

The palletizing robot illustrates this. Random boxes arrive, and the robot doesn't know which box is coming until it arrives. It still has to build a neat pallet from big and small boxes. Part of that is a vision problem: dimensioning the box and the pallet and finding empty spaces. Part is a force-control problem: understanding how heavy an item is when picked up, and how much force to apply when placing it and nestling boxes together for good density. Chris noted this is the kind of thing human touch has traditionally handled.

Perry said that until fairly recently, AI was often deployed as a single approach, such as a stacking algorithm without vision, without touch, or without direct communication with the arm's motor controllers to move smoothly from conveyor to pallet. Reaching fast, efficient motion at human parity requires everything working together.

Asked for a one-sentence answer he could give over a beer, Perry said Dexterity uses multiple AI approaches to solve the "sense, think, move" set of problems a robot must handle to tackle complex tasks. They then expanded on it. Sensing includes looking at and touching the world and drawing on other sensors distributed around the warehouse. Thinking means problem-solving, such as working out how to stack items and finding empty slots. Moving means translating that plan into motion as smoothly and efficiently as possible. Tackling just one of these, Perry said, gets you part of the way to something useful. Human-level flexibility requires all three working together.

Next: Mobile Manipulation

Looking ahead, Perry said the palletizing/depalletizing system keeps growing in capability and that new capabilities would be shown at MODEX that year. They called the team's work "truly phenomenal." The bigger theme brought the conversation back to its opening. After the breakthroughs in mobility and then in manipulation, Perry believes the next big breakthrough will be mobile manipulation: one robot system that can perform different tasks at different stations in a warehouse, doing one job at station A and another at station B. Dexterity has started teasing this with its truck loader. Perry predicted this is where the industry's next breakthrough will be and called Dexterity's approach game-changing.

Named Customers and a Partner Ecosystem

When Chris asked what he hadn't covered, Perry named two changes. First, in the last conversation they had to be cryptic about deployments, but several are now public. According to Perry, FedEx has announced work with Dexterity on truck loading. Sagawa, which Perry described as one of Japan's largest parcel companies, has announced a similar truck-loading program. UPS has announced work with Dexterity on small-package induction and sortation. VF Corp, which Perry said makes Supreme and The North Face, is using the palletizing/depalletizing system. Perry called these "just the tip of the iceberg."

Second, Dexterity has focused on deploying directly with large customers, offering a white-glove, soup-to-nuts setup experience. Perry said that approach has been a constraint on democratizing the technology. Over the past year, a major focus has been enabling an ecosystem of traditional system integrators, naming Dematic, DCS, and JR Automation. These integrators already have experience in the space and can get a Dexterity system running at a customer site without Dexterity staff being there alongside them. Perry said this expands the number and profile of companies Dexterity can work with.

Chris framed partnerships as the next step in the scaling story traced throughout the conversation, from bread packing to many applications and from a strip-mall office to 260 people. He suggested it would be a main topic in a future follow-up. Perry closed by promising to see him for a fourth appearance.