PhysicsX secures $300 million at a valuation of $2.4 billion for AI-based physics simulation technology.

      **TL;DR** London-based PhysicsX secured $300 million in a Series C funding round led by Temasek, elevating its valuation to $2.4 billion, more than doubling in under a year. The AI startup, founded by Formula 1 veterans, streamlines engineering simulations from days to seconds and is rapidly expanding in the AI data center hardware sector.

      PhysicsX, located in London, has obtained $300 million in a Series C round spearheaded by Temasek, Singapore's sovereign wealth fund, thereby raising its valuation to $2.4 billion—more than twice its valuation from a year prior when it was just under $1 billion during its Series B. The round saw high demand, with Temasek, which first invested in PhysicsX during the 2025 Series B, being joined by new investors M&G Investments and Intrepid Growth Partners. Existing supporters like Nvidia, Applied Materials, Atomico, General Catalyst, and Siemens all increased their investments.

      **What PhysicsX does**

      PhysicsX develops an AI-native engineering platform that transforms traditional physics simulations, which can take hours or days, into AI models that provide results in seconds. This technology is employed in various industries, including aerospace, automotive, semiconductor manufacturing, energy, and materials production, and has successfully shortened aircraft design cycles from months to days. The platform merges rapid AI-driven physics inference with numerical simulation to expedite product development, minimize risk, and enhance performance. PhysicsX term this method “Large Physics Models,” drawing a parallel to large language models used in chatbots, but utilizing the physical equations that dictate the behavior of engines, turbines, and chips under stress.

      Founded in 2019 by Jacomo Corbo and Robin Tuluie, both former Formula 1 engineers, the company emerged from stealth in 2023 with a $32 million Series A, led by General Catalyst. Corbo previously served as chief scientist and co-founder of QuantumBlack, which is McKinsey’s AI division, while Tuluie held the position of head of R&D at Renault (Alpine) F1 and vehicle technology director at Bentley Motors.

      **Data centers as the growth engine**

      Surprisingly, the growth of PhysicsX is being driven by the AI surge itself. The demand for infrastructure to construct and operate data centers, gas turbines, compressors, and cooling systems, alongside semiconductor fabrication, significantly fuels the necessity for the engineering simulations that PhysicsX accelerates. “Currently, we are quite constrained on the supply side,” Corbo mentioned to the Financial Times, noting that the company is having to manage its rollout to existing clients due to high demand. He anticipates that semiconductors will become the largest segment for PhysicsX this year.

      This situation is unusual, as PhysicsX, an AI firm, has its primary customers being those constructing the physical infrastructure that other AI companies rely on. Each data center cooling system, chip package, and power turbine contributing to the AI supply chain presents an opportunity for PhysicsX’s technology.

      **Scaling and staying in London**

      The Series C funding will facilitate expansion into the US and the establishment of a new office in Singapore, Temasek’s home base. PhysicsX has grown its workforce from 150 to 350 employees over the past year and has more than quadrupled its revenue in the last two years. Despite its global aspirations, Corbo emphasized that the company will remain headquartered in London, calling the city a “wonderful place” for building a global business.

      With a valuation of $2.4 billion, PhysicsX ranks among the UK’s most valuable AI startups, trailing only companies such as ElevenLabs and Ineffable Intelligence. It secured second place in Sifted’s inaugural AI 100, a list recognizing Europe’s most promising AI startups. This reflects a broader trend indicating that European deep tech can achieve top-tier valuations when its technology resolves significant industrial challenges. Unlike companies developing chatbots or coding assistants, PhysicsX is focused on creating the simulation layer essential for firms constructing the physical infrastructure for AI. In a landscape fixated on software, the company that accelerates hardware design is experiencing a notable moment.