Augment Acquires AI Startup Merlin to Tap $8T Wholesale Distribution Market

Key Details Augment, a supply chain AI platform backed by $110 million in capital, has acquired Merlin, an artificial intelligence startup specializing in wholesale distribution. The move allows Augment to integrate Merlin's technology into Augie, its flagship AI platform, expanding beyond freight brokers and carriers into the massive wholesale distribution sector. Why It Matters Wholesalers operate large private fleets and ship significant volumes of full truckload and less-than-truckload freight. The U.S. wholesale distribution industry is valued at over $8 trillion and typically relies on legacy systems, spreadsheets, and fragmented platforms that slow order fulfillment and create operational complexity. What's Changing Augment's expanded platform translates unstructured inputs like emails, PDFs, and phone orders into structured system actions across the full quote-to-cash cycle. This includes order entry, supplier interactions, and freight coordination. Merlin founder Alex Moazed will lead wholesale distribution efforts alongside co-founders Nick Johnson and John Schumacher, formerly head of AI at Grainger. Data Security Focus Augment emphasized that customer data remains proprietary and is not used to train shared AI models, with AI learning isolated within each enterprise. The platform is already operational at distributors including Ewing Outdoor Supply, Insco Distributing, Brooks Safety Solutions, and Reece.