Unlock the Editor\u2019s Digest for free<\/p>\n
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/p>\n
London-based artificial intelligence start-up PhysicsX has raised $135mn from investors, valuing it at almost $1bn, as it becomes the latest company to benefit from a surge of interest in defence technology. <\/p>\n
The six-year-old start-up, founded by two former Formula 1 engineers, uses AI<\/a> to better design products across the manufacturing and defence industries, such as engine and drone components. <\/p>\n The deal, which has seen it attract funding from Siemens and Singapore state-backed Temasek, comes amid a flood of investor appetite for defence groups<\/a> as a highly charged geopolitical environment spurs nations all over the world to increase military spending. <\/p>\n \u201cWe\u2019ve seen a real inflection and an increased appetite to engage from customers in Europe\u2009.\u2009.\u2009. certainly in aerospace and defence, but also in sectors like automotive and in materials,\u201d PhysicsX co-founder and chief executive Jacomo Corbo told the Financial Times. <\/p>\n \u201cThat this is happening across these industries at the same time reflects, I think, a general European and western awakening that it\u2019s time to\u00a0reindustrialise,\u201d he added. <\/p>\n PhysicsX, which has signed deals with Rio Tinto and Leonardo Aerospace, employs more than 150 people between London and New York.<\/p>\n Corbo \u2014 who met co-founder Robin Tuluie when they both worked for the Renault F1 team \u2014 said the start-up was aiming to capitalise on renewed demand from European and North American companies looking to maximise manufacturing efficiency. <\/p>\n \u201cOne of the things which has changed in Europe is there has been an uptick, an expectation that orders will increase, and this has led to a more aggressive stance in R&D,\u201d he said.\u00a0\u201c[Companies] are looking to change the way they do engineering which is tied to spending with us.\u201d<\/p>\n The deal, which also included backing from Atomico and Applied Materials, will take total funding raised to $175mn and value it at just under $1bn, according to a person familiar with the matter. <\/p>\n