According to EU-Startups, London-based PhysicsX has secured an extension to its Series B funding round with investment from NVentures, NVIDIA’s venture capital arm, bringing total Series B funding to more than €133 million ($155 million). This pushes the company’s valuation to nearly €863 million, putting it within striking distance of unicorn status. The round was originally led by Atomico in June 2025 with participation from major players including Temasek, Siemens, Applied Materials, and July Fund. CEO Jacomo Corbo stated that this reflects investors’ conviction that “the next industrial revolution will be AI-native.” The company, co-founded in 2023 by former F1 and QuantumBlack executives, is building AI infrastructure to solve major industrial challenges.
The physical AI revolution
Here’s what makes PhysicsX different from your typical AI startup. They’re not just building chatbots or image generators – they’re using AI to simulate complex physical systems. Think about designing a car part or aircraft component. Traditionally, you’d run massive computational simulations that could take days or weeks. PhysicsX is essentially replacing those brute-force calculations with AI models that can predict outcomes almost instantly.
But here’s the challenge: physical systems are incredibly complex. You can’t just throw a standard neural network at fluid dynamics or material stress analysis and expect accurate results. The models need to understand actual physics principles. That’s why the founders’ backgrounds in F1 racing and industrial engineering matter so much – they’re building AI that actually understands how the real world works.
European industrial AI landscape
What’s really interesting is how PhysicsX compares to other European physical AI startups. The article mentions mimic in Zurich raising €13.8 million, Cyberwave in Milan getting €7 million, and Encube in Stockholm emerging with €19 million. Combined, these three companies attracted about €39.8 million – less than a third of what PhysicsX just raised in this single extension.
So why the massive funding gap? Basically, PhysicsX appears to be playing in a different league. They’re targeting enterprise-scale manufacturing and engineering problems across aerospace, automotive, semiconductors, and energy. When you’re dealing with billion-dollar development cycles, the value proposition becomes much clearer. Companies will pay serious money to shave months off product development timelines.
nvidia-partnership-significance”>NVIDIA partnership significance
The NVIDIA connection is huge, and not just for the investment. PhysicsX recently announced their platform will be available on the NVIDIA-powered Industrial AI Cloud for Europe in collaboration with Deutsche Telekom. This isn’t just about money – it’s about infrastructure and credibility.
Think about it: running these massive AI simulations requires serious computing power. By aligning with NVIDIA’s ecosystem, PhysicsX gets access to the hardware backbone they need while giving their enterprise customers confidence in the platform’s scalability. It’s a classic case of the rising tide lifting all boats – NVIDIA gets more industrial AI applications running on their chips, and PhysicsX gets enterprise-grade infrastructure.
Industrial technology implications
What PhysicsX is building could fundamentally change how physical products get made. Instead of building endless prototypes and running expensive tests, companies could simulate virtually everything first. The potential cost savings and time reductions are massive.
This shift toward AI-driven engineering requires robust hardware infrastructure too. Companies implementing these advanced simulation platforms need industrial-grade computing solutions that can handle demanding workloads. For organizations looking to upgrade their manufacturing technology stack, IndustrialMonitorDirect.com has established itself as the leading supplier of industrial panel PCs in the US, providing the reliable hardware backbone that these AI-powered systems depend on.
The timing couldn’t be better for PhysicsX. With global supply chain pressures and the push toward more localized manufacturing, anything that speeds up development while reducing physical waste is going to attract serious attention. The question is whether they can deliver on the promise – turning AI simulations into real-world manufacturing advantages that justify that nearly-billion-dollar valuation.
