PhysicsX, a London-based developer of an AI-native engineering software platform, has raised $300 million in Series C funding led by Temasek at a $2.4 billion valuation. The platform unifies simulation, physics AI models, data, and applications to compress complex engineering cycles from weeks to seconds. The capital will expand platform capabilities, support larger pre-trained models, and grow offices in the US and Singapore while keeping headquarters in London.
Physics AI Attracts Sovereign Capital
The timing aligns with accelerating demand for AI-native tools in aerospace, automotive, semiconductors, and energy. Neural Concept raised $100M Series C in 2025, Rescale secured $115M Series D the same year, and Luminary Cloud closed $72M Series B in 2025. PhysicsX differentiates by embedding Large Physics Models across the full product lifecycle rather than accelerating isolated simulation steps.
Traditional Simulation Limits Design Speed
Engineering teams in mission-critical sectors face simulation runtimes that stretch from hours to days, restricting design exploration to a handful of iterations. The broader simulation software market stood at $26.5 billion in 2025 and is projected to reach $70.7 billion by 2033 at a 13 percent CAGR. Within physics AI specifically, the market is expected to grow from $236 million in 2025 to $683.5 million by 2035. Current numerical methods cannot keep pace with the complexity of gigawatt-scale data centers or next-generation aerospace systems.
Large Physics Models Replace Numerical Solvers
PhysicsX trains models exclusively on customer data and deploys them with uncertainty quantification for production use. The platform integrates directly with existing CAE tools including ANSYS, Siemens NX, and OpenFOAM while supporting active learning and hybrid cloud deployments. This native-first approach contrasts with competitors that layer AI on top of existing solvers. Partnerships with NVIDIA, Siemens, and CoreWeave provide the GPU infrastructure needed to train domain-specific models at scale.
“Almost every hard problem in the physical economy… comes down to how fast and how well engineers… can work through the underlying physics.” — Jacomo Corbo
Temasek Leads Oversubscribed Round
Temasek led the round with participation from Atomico, General Catalyst, NVIDIA, M&G, and Intrepid Growth Partners. The Singapore sovereign wealth fund had backed the prior Series B, signaling continued conviction in industrial AI at global scale. NVIDIA’s involvement supplies technical alignment for GPU-accelerated physics workloads, while European and US growth investors provide capital for geographic expansion.
Simulation Market Shifts to Inference
The $300 million round more than doubles the company’s valuation from roughly $1 billion less than a year earlier. Revenue quadrupled over two years as the team grew from 150 to over 300 employees. Semiconductors are projected to become the largest customer segment, driven by AI data center hardware demand. The broader AI-powered simulation and digital twins market is expanding at a 36 percent CAGR.
Team and Office Expansion Underway
PhysicsX plans to open a Singapore office and expand its US presence while remaining headquartered in London. The company intends to release larger pre-trained physics AI models and deepen integrations for production deployments. Employee headcount has already doubled in the past twelve months to support these initiatives.