Nominal raises $240 million at $3 billion valuation

Austin-based AI hardware startup Nominal has announced a $240 million Series C funding round, bringing its valuation to approximately $3 billion. The investment round was led by Lightspeed Venture Partners and co-led by Insight Partners, with participation from several existing and new investors.

Nominal develops an intelligence platform designed for engineering teams to design, test, and validate complex physical systems, such as aircraft, nuclear reactors, and smart factories. The software aims to connect data from sensors, simulations, and test rigs to help engineers understand physical system behavior, a task the company notes is distinct from generating text or code.

The company has seen rapid valuation growth, rising from a $1 billion valuation during a Series B extension in March to its current $3 billion mark. Nominal’s technology has attracted interest from the defense sector, with reports indicating that Anduril is a customer and the US Air Force selected the company for a $71.2 million Strategic Funding Increase programme in October.