PhysicsX hits $2.4B valuation after raising $300M to bring AI to manufacturing

A company that started with a handful of ex-Formula 1 engineers now sits at a $2.4 billion valuation. PhysicsX, the London-based AI startup focused on industrial simulation, closed a $300 million Series C round on June 8, cementing its position as one of the most valuable private companies working at the intersection of artificial intelligence and physical engineering.

The round was led by Temasek, Singapore’s sovereign wealth fund, with new money from M&G Investments and Intrepid Growth Partners. Existing backers including NVIDIA, Applied Materials, Atomico, General Catalyst, July Fund, NGP, Radius, and Siemens all came back to the table. The round was oversubscribed.

What PhysicsX actually does

PhysicsX builds AI models informed by physics that compress simulation processes that might take hours or days into seconds. The company’s AI-native platform spans aerospace, automotive, semiconductors, energy, and materials science.

Founded in 2019 by engineers and physicists from Formula 1 racing, PhysicsX has deep roots in high-performance numerical modeling.

The growth numbers behind the valuation

The company reported that its recognized revenue doubled year-over-year. Its booked revenue tripled over the same period. Customer count more than doubled within the past year. The team itself has grown past 300 employees, roughly twice its size from 12 months ago.

What this means for investors watching the AI space

Traditional simulation software companies like Ansys, which Synopsys agreed to acquire, and Dassault Systemes have dominated engineering simulation for decades. PhysicsX is arguing that physics-informed AI models can leapfrog those legacy tools in speed without sacrificing accuracy.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.