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

      **TL;DR** London-based PhysicsX has secured $300 million in a Series C funding round led by Temasek, achieving a valuation of $2.4 billion, more than double in less than a year. Founded by former Formula 1 engineers, the AI startup dramatically reduces engineering simulation times from days to seconds and is rapidly expanding in the AI data centre hardware sector.

      PhysicsX, located in London, has raised $300 million in a Series C round guided by the Singaporean sovereign wealth fund Temasek, elevating its valuation to $2.4 billion, more than double the value it achieved in its Series B round last year, which was just below $1 billion.

      The funding round saw high demand, with additional participation from new investors M&G Investments and Intrepid Growth Partners, and existing investors such as Nvidia, Applied Materials, Atomico, General Catalyst, and Siemens increasing their investments.

      **About PhysicsX**

      PhysicsX has developed an AI-driven engineering platform that substitutes traditional physics simulations, which can take from hours to days, with AI models that provide results in mere seconds. This technology is applicable across various sectors including aerospace, automotive, semiconductor manufacturing, energy, and materials production, successfully shortening aircraft design timelines from months to days.

      The platform merges rapid AI-enhanced physics inference with numerical simulation to expedite product development, mitigate risks, and enhance performance. PhysicsX refers to their methodology as “Large Physics Models,” drawing a parallel to the large language models fueling chatbots, but tailored to the physical laws governing the behavior of engines, turbines, and chips under pressure.

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

      **Data Centres as a Growth Driver**

      Interestingly, the company’s expansion is being fueled by the current AI surge. The demand for engineering simulation that PhysicsX provides is significant in the infrastructure required for building and operating data centres, gas turbines, compressors, and cooling systems.

      “We are currently very limited on the supply side," Corbo told the Financial Times, noting that the company has to manage its deployment to existing customers due to high demand. He indicated that semiconductors are expected to be PhysicsX’s largest industry sector this year.

      This situation is noteworthy: an AI company whose primary clients are those constructing the physical infrastructure needed by other AI firms. Every data centre cooling system, chip package, and power turbine integrated into the AI supply chain presents an opportunity for PhysicsX.

      **Scaling and Remaining in London**

      The Series C funding will be utilized for expansion into the US and establishing a new office in Singapore, Temasek’s home base. PhysicsX has grown its workforce from 150 to 350 employees over the last year and has more than quadrupled its revenue in two years. Despite its plans for global expansion, Corbo stated that the company will continue to be based in London, characterizing the city as an “excellent location” for building a global enterprise.

      The $2.4 billion valuation positions PhysicsX among the top AI startups in the UK, following companies like ElevenLabs and Ineffable Intelligence. It was ranked second in Sifted’s first AI 100 list, which highlights Europe’s most promising AI startups.

      The larger implication is that European deep tech can achieve valuations typical of frontier technology when it addresses a significant industrial bottleneck. PhysicsX is not focused on creating chatbots or coding aids but is developing the simulation framework that industries producing AI's physical infrastructure rely on. In a market predominantly interested in software, the company facilitating quicker hardware design is truly experiencing a significant moment.