Prometheus raises $12 billion to build physical AI systems

Prometheus, a startup operating in physical AI—a sector focused on artificial intelligence applications in the physical world—has raised $12 billion at a $41 billion valuation. The company, co-founded by Jeff Bezos and Vik Bajaj, the former co-founder of Google’s life sciences unit Verily, is building what it calls an “artificial general engineer.” This software is designed to automate the design and manufacturing of complex physical systems, ranging from jet engines to drug compounds. Proponents of physical AI argue that the sector is inherently more defensible than pure software because the physical world creates competitive moats that code alone cannot.

The transaction marks the second funding round for Prometheus since its launch late last year. According to CNBC, the startup previously secured an initial raise of $6.2 billion. The newly raised $12 billion came from a group of investors, including:

• Jeff Bezos
• JPMorgan Chase
• Goldman Sachs
• BlackRock

Although the startup’s software is designed to automate large swaths of engineering work, Bezos argues that the resulting productivity gains will not lead to widespread job losses. Instead, he contends that these advancements will result in what he calls “labor scarcity”—his term for a world where the demand for human workers outpaces the supply. This position puts him at odds with other prominent voices in the technology industry who predict widespread unemployment. Bezos argues that the economic shift will instead raise living standards by significantly increasing productivity. As co-founder, Bezos stated, “People who today have two-earner households, they’ll become one-earner households. Maybe some people who are working overtime will stop working overtime.”

Prometheus currently has 150 employees distributed across its offices in San Francisco, London, and Zurich, while keeping the specifics of what it has built under wraps. The scale of the startup’s workforce stands in sharp contrast to Amazon, where Bezos serves as executive chairman and remains the largest individual shareholder. Amazon employs more than 1.5 million people worldwide. Under CEO Andy Jassy, Amazon has recently laid off tens of thousands of people as the company has accelerated its own automation push.

Why it matters

At $41 billion, Prometheus is one of the most richly valued AI startups ever funded, representing a massive bet on the defensibility of physical AI over pure software. Investors and founders argue that the physical world creates competitive moats that code alone cannot replicate.