ASI has raised $325 million in a Series C round that values it at $3 billion, the Boston AI company announced on Tuesday. Its software models air traffic, power grids and military operations hours, days and weeks ahead. The aim is to let operators act before problems spread.
Spark Capital led the round. Affiliates of Citadel Securities, Meritech Capital, Craft Ventures, Energy Impact Partners and Andreessen Horowitz also took part. The company used to go by the name Air Space Intelligence, Bloomberg reported. Gradient, which led its pre-seed round, congratulated the team on X.
Huge congratulations to @AirSpaceIntel on raising $325M at a $3B valuation led by @sparkcapital @Citadel @MeritechCapital! We’re thrilled to have led the pre-seed @GradientVC from the beginning and continue to be blown away by @pbuckendorf and team 🚀
“While the broader tech ecosystem spent hundreds of billions teaching AI to manipulate words and generate text, ASI is deeply focused on AI systems that can manage and control physical assets,” said Phillip Buckendorf, ASI’s founder and chief executive.
The FAA contract
In June, the Federal Aviation Administration gave ASI an $875 million contract to manage US air traffic with AI. ASI beat Palantir and Thales, which had been competing for the contract, Bloomberg reported. The deal runs for 12 years, according to Reuters.
The system combines weather, flight paths and controller staffing to predict congestion and suggest ways to cut delays. The FAA started using it in September, at first only around Washington. It plans to expand it across the country.
ASI says it is one of only four technology companies founded since 2000 to win a federal programme of record of that size.
“Instead of relying on research work that might take five to 10 years, the government is acquiring proven capability,” Buckendorf told Bloomberg Television.
Army, airlines and the grid
The US Army gave ASI a five-year, $99 million contract in October for its next generation command and control programme. The company says it supported more than 4,000 US Air Force operators during Operation Epic Fury.
Delta Air Lines, Alaska Airlines and United Airlines use its systems. The utility National Grid uses them to plan and run its electricity network. ASI has also worked with Joby on managing electric air taxi skies.
The new money will take ASI further into energy, logistics and military field operations. It will also grow its research and engineering teams in Boston. ASI is part of a wave of US defence and aerospace start-ups drawing investors, Bloomberg reported. This month, Anduril opened an employee share sale at a $90bn valuation.