M&G : Catalyst strategy invests in UK AI company PhysicsX to accelerate growth in engineering and industrial sectors

London, 8 June 2026 - M&G's Catalyst strategy (Catalyst) has invested in UK-headquartered PhysicsX, which applies advanced physics AI to industrial engineering and manufacturing. Its technology is transforming how complex physical systems are designed, built and operated and is accelerating hardware innovation across the industries that underpin the global economy. M&G has invested as part of a $300 million Series C financing round alongside leading global industrial and technology players, valuing the company at approximately $2.4 billion dollars.

Based in East London's tech district, PhysicsX works with major multi-national companies, helping engineers to rethink how complex products and systems are designed, tested and brought to market, supporting innovation across the real economy. The company is deploying its AI-native simulation software stack to enable faster design cycles and more efficient processes across advanced industries. This includes optimising the performance of aircraft and vehicles, speeding up semiconductor equipment manufacturing, designing efficient data centre infrastructure, and helping energy and materials companies optimise production and reduce waste.

The latest financing round will support PhysicsX as it expands its product offering, deepens relationships with global clients and grows its international footprint, including the continued development of larger and more capable physics AI models.

M&G's Catalyst is a global strategy investing into technology-led businesses with proven models and global scale potential, focusing on themes including climate, infrastructure, healthcare and financial inclusion. Catalyst is backed by M&G's £134 billion With Profits Fund¹, alongside other major investors including the British Business Bank, highlighting the role of patient capital in supporting high-growth UK companies and broader economic development.

Jacomo Corbo, Co-Founder and CEO of PhysicsX, said: "For decades, the pace of industrial innovation has been limited by how quickly engineers can work through the underlying physics - physics AI removes that constraint. We are enabling more reliable, efficient - and entirely new - ways of doing engineering, manufacturing, and production. Our Series C financing lets us put that capability in the hands of more engineers globally."

Niranjan Sirdeshpande, Head of Catalyst at M&G Investments, said: "PhysicsX connects UK technological capability with global industries, applying physics AI to industrial sectors to benefit real economies. It is an exciting example of how industrial AI is reshaping entire sectors and how the PhysicsX platform is fundamentally changing how complex systems are engineered, manufactured and operated, delivering faster design cycles and efficiency gains across industries. For investors, this reflects our focus on backing businesses with both strong commercial momentum and the ability to drive real-world impact at scale."