Temasek-backed CuspAI in talks to boost value above US$1 billion: sources

[LONDON] CuspAI, a British startup that aims to use artificial intelligence for discovering new materials, is in discussions to raise at least US$200 million in new funding, according to people familiar with the matter.

No term sheet has been signed as yet, but any round would take the startup’s valuation well above US$1 billion, one of the people said, asking not to be identified as the information is not public.

CuspAI raised a Series A round last summer led by New Enterprise Associates and Singapore state investor Temasek, Bloomberg News reported.

The startup subsequently brought in more funds, giving it a valuation close to US$800 million, according to the people. That extension came after the startup landed commercial contracts worth millions of US dollars, one of the people said.

CuspAI declined to comment.

Formed in 2024, CuspAI offers a platform that it likens to a highly specialised search engine for molecular formulas. It is one of several well-capitalised AI companies trying to apply the technology to materials science, including startups from alumni of OpenAI and Google DeepMind, as well as Amazon.com founder Jeff Bezos.

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The idea is to reduce the time it takes scientists to discover new materials, a process that can take years of trial and error. CuspAI allows researchers to design new materials from scratch by specifying the properties they want. The company is focused on areas including semiconductors, sustainable energy, batteries and carbon capture.

CuspAI partners with companies including chipmaker Nvidia, semiconductor manufacturing equipment firm ASML Holding and carmaker Hyundai Motor.

CuspAI’s other existing backers include Hoxton Ventures, Lightspeed and Giant Ventures. The startup has added two AI “godfathers,” former Meta Platforms chief AI scientist Yann LeCun and Nobel laureate Geoffrey Hinton, to its board. BLOOMBERG