PhysicsX has raised $135 million in funding, pushing its valuation close to $1 billion. The London-based AI startup, founded by ex-Formula 1 engineers, uses AI to improve design in manufacturing and defense, including engine and drone parts.
The round attracted heavy hitters like Siemens and Singapore’s state-backed Temasek. It reflects growing investor interest in defense tech amid rising global military spending.
PhysicsX CEO Jacomo Corbo said the company sees a surge in demand across aerospace, defense, automotive, and materials sectors. 
“We’ve seen a real inflection and an increased appetite to engage from customers in Europe . . . certainly in aerospace and defence, but also in sectors like automotive and in materials,”
Jacomo Corbo stated.“That this is happening across these industries at the same time reflects, I think, a general European and western awakening that it’s time to reindustrialise,” he added.
PhysicsX, which employs 150+ people between London and New York, has deals with Rio Tinto and Leonardo Aerospace. The company’s total funding is now $175 million with backers including Atomico and Applied Materials.
The funding surge mirrors moves by other European defense startups. German Helsing recently raised €600 million, reaching a €12 billion valuation, while drone firms Quantum Systems and Tekever clocked valuations above €1 billion last month.
Atomico partner Laura Connell called PhysicsX’s rise a sign of a “tipping point” in tech development.
“Yes, there’s a . . . geopolitical element to what’s going on in Europe, but there is also a broader global conversation about fundamentally how do we do more with less,”
Laura Connell said.
Corbo emphasized PhysicsX’s commitment to staying European-based despite startup migration pressures to the US.
“We see a massive opportunity and imperative for our technology across the European industrials base, and we’ve high conviction that this is the right time to build a company like ours out of Europe,”
Jacomo Corbo added.
