PhysicsX, a London-based AI-driven engineering software company, has raised US$135 million in a series B funding round.

The round was led by Atomico, with participation from Temasek, Siemens, Applied Materials, July Fund, and existing investors including General Catalyst, NGP, Radius Capital, Standard Investments, and Allen & Co.

This brings the company’s total funding to nearly US$170 million.

The funds will be used to expand globally and boost the adoption of its enterprise software across industries such as aerospace, automotive, semiconductors, materials, and energy.

PhysicsX was co-founded by Robin Tuluie, who previously worked with Renault and Mercedes F1 teams, and Jacomo Corbo, former chief scientist at QuantumBlack.

The company aims to integrate AI into the entire engineering lifecycle, tackling complex challenges in advanced manufacturing and hardware innovation.

🔗 Source: PhysicX

🧠 Food for thought

1️⃣ AI in manufacturing faces an adoption paradox despite massive market potential

PhysicsX’s substantial $135 million Series B highlights the enormous financial interest in manufacturing AI, with the sector projected to grow at a remarkable CAGR of 51.5% to reach $17.9 billion by 20281.

Despite this potential, a significant adoption gap persists, as 63% of manufacturers remain in early stages of AI integration, with 43% citing high upfront costs as a major barrier2.

The technical challenges are also notable, with 47% of manufacturers identifying data fragmentation as a critical obstacle to effective AI implementation2.

This creates an opportunity for specialized firms like PhysicsX, as their focus on industrial-specific AI can address the unique challenges manufacturing faces compared to consumer or enterprise software.

The investment reflects a growing recognition that specialized expertise, such as PhysicsX founders’ backgrounds in Formula 1 racing and engineering, is crucial for bridging theoretical AI capabilities with practical manufacturing applications.

2️⃣ Manufacturing AI requires cross-disciplinary expertise to deliver practical value

PhysicsX’s founding team exemplifies a critical success factor in industrial AI—the combination of deep domain expertise (Formula 1 engineering) with AI capabilities (former Chief Scientist at QuantumBlack).