UK AI start-up PhysicsX is on the cusp of achieving a near-$1 billion valuation after successfully raising $135 million from investors. This significant funding round underscores a burgeoning interest in defence technology and advanced manufacturing solutions, propelled by a shifting geopolitical landscape and a renewed focus on industrial efficiency across Europe and beyond.
AI Innovator PhysicsX Secures Major Investment
PhysicsX, a London-based artificial intelligence start-up, has secured $135 million in its latest funding round, bringing its valuation close to $1 billion. Founded six years ago by two former Formula 1 engineers, Jacomo Corbo and Robin Tuluie, the company specialises in using AI to optimise product design in manufacturing and defence sectors, including engine and drone components.
Strategic Investors and Market Trends
The funding round saw participation from notable investors such as Siemens and Singapore state-backed Temasek, alongside Atomico and Applied Materials. This investment reflects a broader trend of increased investor appetite for defence and industrial technology companies, driven by a heightened geopolitical environment and a global push for reindustrialisation and manufacturing efficiency.
PhysicsX's technology is designed to help companies "do more with less," addressing a global need for increased efficiency.
European Reindustrialisation and Defence Spending
Jacomo Corbo, co-founder and CEO of PhysicsX, highlighted a significant "awakening" in Europe and the West towards reindustrialisation. He noted an increased engagement from customers in aerospace, defence, automotive, and materials sectors, indicating a more aggressive stance on research and development as companies seek to modernise their engineering processes. This aligns with a general uptick in expected orders and a desire to enhance manufacturing capabilities.
Growth and Global Reach
PhysicsX currently employs over 150 people across its London and New York offices. The company has already secured deals with major industry players like Rio Tinto and Leonardo Aerospace, demonstrating the applicability and demand for its AI-driven solutions. Despite pressures for UK start-ups to relocate, PhysicsX remains committed to its London headquarters, emphasising the significant opportunity within the European industrial base.
Broader Investment Landscape
The PhysicsX deal follows other substantial investments in the European defence tech sector. Recently, German defence tech group Helsing announced a €600 million funding round, valuing it at €12 billion. Similarly, European drone manufacturers Quantum Systems and Tekever were both valued at over €1 billion last month, signalling a robust and expanding market for innovative defence and industrial technologies.
