Nvidia Backs AI Manufacturing Startup PhysicsX with $100M Commitment

AI startup PhysicsX secured a $20 million funding extension from Nvidia, with rights for the chip giant to invest up to $80 million more in the next round. The deal continues Nvidia's aggressive European startup investment strategy.

PhysicsX builds AI software that rapidly designs components for manufacturing projects across defense, aerospace, and other industries. The London-based company has become one of Europe's most talked-about startups recently.

The company announced the UK's largest defense tech raise in June, pulling in $135 million at a nearly $1 billion valuation. Atomico, General Catalyst, and Temasek backed that Series B round.

Nvidia invested in the extension at the same valuation four months later, according to a source familiar with the deal. The additional commitment gives Nvidia significant exposure to PhysicsX's future growth.

Former Formula 1 engineers Jacomo Corbo and Robin Tuluie founded the startup in 2019. Their AI models simulate how materials and engineering designs perform under different conditions. Manufacturers use the software to iterate designs quickly, cutting physical testing costs substantially.

Annual recurring revenue doubled over 12 months to reach $25 million, the source told Sifted. Defense and aerospace generate most revenue, though the company also serves semiconductor, materials, automotive, and energy sectors.

Customers include mining giant Rio Tinto, plus manufacturing companies Applied Materials and Siemens. The defense focus aligns with growing European military technology investment.