PhysicsX raises $300M at $2.4B valuation to bring AI to engineering simulation
What's the deal? London-based PhysicsX has raised $300M in a Series C led by Singaporean sovereign wealth fund Temasek, more than doubling its valuation to $2.4B in under a year. New backers M&G InvestmentsDealroom has a profile for this one. Try Dealroom → and Intrepid Growth PartnersDealroom has a profile for this one. Try Dealroom → joined the oversubscribed round, while existing investors Nvidia, Applied MaterialsDealroom has a profile for this one. Try Dealroom →, Atomico, General Catalyst, and SiemensDealroom has a profile for this one. Try Dealroom → all increased their stakes.
Founded in 2019 by former Formula 1 engineers Jacomo CorboDealroom has a profile for this one. Try Dealroom → and Robin TuluieDealroom has a profile for this one. Try Dealroom →, PhysicsX builds an AI platform that replaces conventional physics simulations — which take hours or days — with models that deliver results in seconds. It calls these "Large Physics Models," applied to the equations governing how engines, turbines, and chips behave under stress.
The company emerged from stealth in 2023 with a $32M Series A. It has since grown from 150 to 350 employees.
Why now? The AI boom is fuelling PhysicsX's growth in an unusual way. The physical infrastructure required to build and run data centres — gas turbines, cooling systems, semiconductor fabrication — creates massive demand for the engineering simulation it accelerates.
"Right now, candidly, we are very supply-side limited," chief executive Corbo told the Financial Times, adding that the company is having to moderate its rollout because of demand. He said semiconductors are expected to become PhysicsX's largest industry segment in 2026.
What could go wrong? PhysicsX's growth is tightly coupled to the AI infrastructure buildout. Any slowdown in data centre construction or semiconductor investment could dampen demand. The company also faces the challenge of scaling a deeply technical product across multiple industries — aerospace, automotive, energy, chipmaking — each with its own requirements and validation standards.
Being "supply-side limited" is a good problem to have, but it also means the company risks losing customers if it can't deliver fast enough.
The signal: PhysicsX reflects a growing trend of AI companies that serve the physical world rather than the digital one. While most AI investment has flowed into chatbots and software copilots, a wave of startups is applying machine learning to engineering, manufacturing, and industrial design. The $2.4B valuation places PhysicsX among the UK's most valuable AI startups, alongside the likes of ElevenLabs.
The irony is rich: an AI company whose biggest customers are the firms building the hardware that other AI companies need. Every chip package, cooling system, and power turbine feeding the AI supply chain is a potential deployment. The fresh capital will fund US expansion and a new Singapore office, though Corbo said PhysicsX would remain headquartered in London.
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