Prometheus secures $12 billion in second round, valuing Bezos-backed physical AI startup at $41 billion
The second funding round, led by major financial institutions including JPMorgan Chase and BlackRock, underscores investor confidence in the physical AI sector despite the company’s early stage and undisclosed technical capabilities.
Prometheus, the physical artificial intelligence startup co-founded by Jeff Bezos and Vik Bajaj, has raised $12 billion in its second funding round, achieving a valuation of $41 billion. The capital injection includes investment from Bezos himself, alongside major financial institutions JPMorgan Chase, Goldman Sachs, and BlackRock. This latest round follows an initial raise of $6.2 billion when the company launched late last year, marking it as one of the most heavily funded artificial intelligence ventures to date.
The company aims to develop an “artificial general engineer,” a system designed to automate the design and manufacturing of complex physical systems. Applications for this technology range from jet engines to pharmaceutical drug compounds. While the startup has not disclosed specific technical achievements or prototypes, Bezos indicated that a significant portion of the new capital will be allocated to meet large compute requirements necessary for such advanced operations.
Bezos has framed the potential economic impact of these productivity gains through the lens of “labor scarcity.” He argues that increased efficiency will drive demand for human workers to outpace supply, potentially raising living standards. Under this scenario, households currently relying on two incomes could transition to single-income models, and those working overtime might reduce their hours. This perspective contrasts with other industry voices who predict widespread job losses due to automation.
Prometheus currently employs 150 people across offices in San Francisco, London, and Zurich. The startup operates within the “physical AI” sector, which investors argue offers stronger defensive moats than pure software due to the inherent constraints of the physical world. This sector has attracted significant venture capital interest recently, with backers betting on the durability of hardware-integrated AI solutions.
The funding comes at a time when Bezos, as executive chairman of Amazon, is overseeing a company that employs over 1.5 million people globally. Amazon has recently accelerated its automation efforts under CEO Andy Jassy, resulting in tens of thousands of layoffs. Despite the high valuation and ambitious goals, Prometheus remains tight-lipped about its current technological capabilities, leaving the feasibility of its “artificial general engineer” concept unverified by external observers.
