Temasek-backed startup PhysicsX hits US$2.4 billion valuation to provide AI for manufacturing

Published Mon, Jun 8, 2026 · 03:38 PM

[LONDON] PhysicsX, a British startup that develops artificial intelligence models for manufacturing components like jet engines and semiconductors, has raised US$300 million at a valuation of roughly US$2.4 billion, competing in a crowded field that includes Amazon.com founder Jeff Bezos.

Singapore investment company Temasek led the Series C financing into PhysicsX, the London-based company said on Monday (Jun 8). Intrepid Growth Partners and M&G Catalyst joined as new investors alongside earlier backers, including chip firms Nvidia and Applied Materials. The company was valued at almost US$1 billion at its last funding round.

A growing number of companies are trying to apply the latest advances in AI to heavy-duty industry, pitching it as a way to cut manufacturing time and costs. That rank includes Project Prometheus, a new AI lab from Bezos, which closed a US$10 billion funding round in April. Several others are developing AI “world models” designed to make better robots that could, for example, work in assembly plants.

PhysicsX focuses on software that lets aerospace and automotive firms design, test and assemble parts. The company provides an AI model that predicts how physical objects behave, which it says makes the process much faster than conventional simulation software for engineering. Increasingly, PhysicsX is selling to semiconductor firms; chief executive officer Jacomo Corbo said the sector will be its largest segment by the end of the second quarter.

The startup, which last raised funds 12 months ago, needs more cash to expand its staff in part because of a roughly six-month backlog of customer demand, according to Corbo. “That’s a little untenable for us,” he said. Customers include Applied Materials, Siemens and Stellantis.

Corbo said revenue will be “close to US$50 million” for the year and the company aims to more than double the figure in 2027. BLOOMBERG