Key Highlights

  • ASI raised USD 325 million in a Series C round at a USD 3 billion valuation, led by Spark Capital.
  • A 12-year, USD 875 million Federal Aviation Administration contract from June covers air traffic management systems.
  • A five-year, USD 99 million U.S. Army contract signed in October covers military command systems.
  • Proceeds go to deployments in energy, logistics and military settings, plus Boston research and engineering hires.

Round Led by Spark Capital

ASI, a Boston-based AI startup, said on Tuesday it raised USD 325 million in a funding round valuing the company at USD 3 billion, amid growing investor appetite for AI software used in real-world applications. The Series C round was led by Spark Capital, with participation from affiliates of Citadel Securities, Meritech Capital and Craft Ventures, among others. Energy Impact Partners and Andreessen Horowitz also took part. The company's previous disclosed round was a USD 34 million Series B in late 2023 led by Andreessen Horowitz, with Spark Capital among the participants.

Software for Physical Systems

ASI develops simulation and monitoring software that helps operators forecast disruptions hours, days or weeks in advance across complex systems such as air traffic, power grids and military operations. Founder and CEO Phillip Buckendorf said the broader technology industry has spent hundreds of billions teaching AI to manipulate words and generate text, while ASI is focused on AI systems that can manage and control physical assets.

Customers include Alaska Airlines, Delta Air Lines and United Airlines, along with the U.S. Air Force, according to trade reports. National Grid applies the technology to grid planning and operations. Alaska has reported a 3 Percent to 5 Percent cut in fuel burn on long-haul flights using the company's flight-planning platform.

Government Contracts and Use of Proceeds

The company secured a five-year, USD 99 million U.S. Army contract in October and a 12-year, USD 875 million Federal Aviation Administration contract in June. They cover military command systems and air traffic management, respectively. The Army work supports command-and-control modernization, including the Next Generation Command and Control program.

The FAA award funds two air traffic management systems, including one that replaces the agency's Traffic Flow Management System. A cloud platform in the package flags airspace conflicts before they occur, extending the prediction window from about 15 minutes to two hours. Deployment begins in fall 2026, with full rollout targeted for 2028.

ASI said it is using the proceeds to expand deployments in energy, logistics and military environments and to add to its research and engineering teams in Boston. The company is headquartered in Boston, with offices in Washington, Denver and Europe.