ASI raises $325 million at a $3 billion valuation

ASI Inc. has raised $325 million in Series C funding, valuing the AI infrastructure software company at $3 billion. The company plans to use the money to expand its work in aviation, defense and energy.

Spark Capital led the round. Citadel Securities, Craft Ventures, Meritech Capital, Energy Impact Partners and Andreessen Horowitz were among the other participants.

Formerly known as Air Space Intelligence, ASI builds AI models that simulate physical systems and possible future conditions. Its software helps customers plan operations involving air traffic, military systems and energy grids.

Federal contracts drive ASI’s growth

ASI works with the Federal Aviation Administration, United Airlines Inc. and Delta Air Lines Inc. Its air traffic software draws on flight paths, current traffic, weather and controller staffing to forecast congestion and help users plan around delays.

In June, ASI signed an $875 million, 12-year agreement with the FAA for its air traffic platform. Bloomberg reported that ASI won the contract over bids from Palantir Technologies Inc. and Thales SE. The award made ASI one of four technology companies to secure a federal contract of that size since 2000.

Earlier this month, ASI announced a five-year, $99 million agreement to provide software for a U.S. Army command-and-control program. The company also works with the U.S. Air Force and other defense customers on daily operations.

In energy, ASI helps grid operators simulate operations and prepare for changes in demand. National Grid USA Service Company Inc. uses its software for planning.

ASI plans to expand its teams and markets

Founder and Chief Executive Phillip Buckendorf said he sees forecasting as important to the people running critical infrastructure. He described ASI’s focus as AI that manages physical assets.

ASI said it will use the new funding to grow its research and engineering teams, develop its software further and enter other industries, including logistics.