One of the country’s fastest-growing AI startups moves HQ to Midtown
A startup that’s making waves by using artificial intelligence to optimize machinery systems has planted its flag in the heart of Atlanta’s innovation district.
Tractian, which has amassed a $720 million valuation after being founded in 2019, signed a lease to move its headquarters to the Coda building at Technology Square, the company’s CEO told The Atlanta Journal-Constitution. The move triples Tractian’s office footprint in the city, a notable expansion that brings another fast-growing technology company to Midtown in search of young talent.
Igor Marinelli, a University of California, Berkeley graduate, co-founded Tractian along with fellow Brazilian natives Leonardo Vieira and Gabriel Lima. But as they got the startup off the ground, the trio became enticed by Atlanta’s engineering talent.
“Georgia Tech was where we hired the first people of the company,” said Marinelli, now Tractian’s CEO. “That made Atlanta very interesting for us, so I moved from the Bay Area to here.”
The Coda tower, which opened in 2019, was designed as an anchor for tech startups and companies looking for direct access to Georgia Tech students and graduates. It’s succeeded in attracting a wave of tech firms to Midtown, ranging from innovation centers to office towers bearing Fortune 500 logos.
Nathan Williams, a director at Atlanta-based tenant representative firm Scotland Wright Associates, said tech companies have historically been a cornerstone of Midtown’s office market. But that waned after the COVID-19 pandemic popularized remote and hybrid work schedules, leaving Atlanta with an unprecedented glut of unwanted office space.
Williams and Michael Tucker, CEO of Scotland Wright, represented Tractian in the Coda lease signing, adding the deal could represent that the tides are turning.
“One of the biggest industries that has been affected by COVID in terms of office utilization has been the tech industry,” Williams said. “So this (Tractian deal) is a testament to how that’s kind of coming back.”
Tractian describes itself as an “industrial copilot,” developing software and hardware that uses AI to monitor heavy machinery and equipment to look for inefficiencies. Its clients include Kraft Heinz, Hyundai, John Deere, Bosch and some well-known Atlanta attractions.
“We monitor all the chilled water pumps, HVAC, water treatment systems and the life systems of the Georgia Aquarium,” Marinelli said. “… We are fine-tuning heavy machinery essentially to provide more throughput, less down time and more predictability.”
Forbes magazine listed Tractian as one of the 50 fastest-growing privately held AI companies in 2024 after it received a $120 million investment from Sapphire Ventures. Tractian has raised $200 million since 2020, according to Forbes.
Tractian currently employs about 500 workers split between North and South America. Roughly 50 employees are currently based in metro Atlanta, with other U.S. workers based in Austin, Texas; Chicago; Houston; and Raleigh, North Carolina.
The company signed a 10-year lease for the sixth floor at Coda, which is nearly 22,000 square feet. Tractian currently occupies 7,000 square feet at the 201 17th St. NW office tower in Atlantic Station. Scotland Wright’s project management division will oversee the build-out of Tractian’s Coda space, aiming to open this fall.
Marinelli said the Coda lease includes the option to expand to additional floors, representing a long-term bet on Atlanta’s engineering and computer science talent. His ambitions are to become the next Emerson Electric Co., a stalwart Fortune 500 company that focuses on industrial systems and efficiency.
“AI can impact physical operation space in a big (way) and help front-line people have a better career and better life,” Marinelli said. “Those two things can coexist.”
There have been many high-profile corporate layoffs in recent months, some of which have been blamed at least in part on AI integration, raising questions about the technology’s impact on white collar workers.
But Williams said companies on the forefront of AI innovation like Tractian show it has job creation potential.
“AI, in my opinion, will certainly have a very positive effect in terms of real estate and office utilization,” he said. “Although there might be certain jobs that AI takes away, it’s also going to create a lot of jobs, and a lot of those need to be in-person.”
About the Author
Zachary Hansen, a Georgia native, covers economic development and commercial real estate for the AJC. He's been with the newspaper since 2018 and enjoys diving into complex stories that affect people's lives.
