UK firm PhysicsX hits £1.8bn valuation in funding round

TL;DR:

• London-headquartered PhysicsX has been valued at £1.8bn ($2.4bn) in a Temasek-led funding round.
• New backers M&G Investments and Intrepid Growth Partners join existing investors including Nvidia, Siemens and Atomico.
• The firm has doubled recognised revenue and headcount over the past year, reaching more than 300 staff.

A British “physics AI” company has joined the UK’s small club of high-value AI scale-ups, with PhysicsX valued at £1.8bn ($2.4bn) in its latest round. The firm builds AI models that predict physical behaviour in seconds rather than hours, letting engineers in aerospace, defence, energy, semiconductors and automotive evaluate far more design options at speed.

Backing for British deep tech

The round is led by Singapore’s Temasek — which first invested in 2025 — with new participation from M&G Investments and Intrepid Growth Partners, alongside existing investors including Applied Materials, Atomico, General Catalyst, Nvidia and Siemens. The breadth of strategic backers reflects where the technology sits: at the heart of slow, expensive simulation workflows that constrain hardware development. Co-founder and chief executive Jacomo Corbo said “almost every hard problem in the physical economy” comes down to how fast engineers can work through the underlying physics, and that the financing will fund larger “Large Physics Models”.

The growth metrics underline genuine commercial traction rather than hype: PhysicsX says it has doubled recognised revenue, tripled booked revenue and more than doubled its customer count over the past year, with the team passing 300 people. Headquartered in the UK with offices in London and New York and a growing Bay Area presence, it is the kind of homegrown firm UK ministers are anxious to retain.

Looking forward

The valuation lands on the same day as a government push to keep AI start-ups in Britain through strategic chip purchasing, underscoring the policy stakes around scale-ups like this one. PhysicsX’s focus on industrial engineering — rather than chatbots — also marks a more defensible niche as investors grow wary of speculative AI bets. The challenge is converting frontier research into broad adoption across conservative engineering sectors, where procurement cycles are long and trust in simulation is hard-won.