Encord Secures €50 Million Funding for Expansion of Physical AI Deployment in London

Encord, a leading data infrastructure company specializing in physical AI, has recently announced a successful €50 million ($60 million) Series C funding round. The primary goal of this funding is to expedite product development, broaden market reach, and enhance the scalability of its AI-centric data infrastructure platform. This move comes as physical AI systems transition from experimental phases to full-fledged production.

The Series C funding round was spearheaded by Wellington Management, propelling Encord’s total funding to an impressive €93 million ($110 million). Noteworthy participation also came from existing investors Y Combinator, CRV, N47, Crane Venture Partners, and Harpoon Ventures, as well as new investors Bright Pixel Capital and Isomer Capital.

Ulrik Stig Hansen, the co-founder and co-CEO of Encord, emphasized the critical importance of data readiness over merely focusing on building larger AI models. He highlighted that the success of AI systems hinges on the quality and alignment of the data feeding into them, rather than just the complexity of the models themselves.

Encord’s funding round aligns with the growing trend of substantial investments in Europe’s AI infrastructure and autonomy sector in recent years. Notable examples include Mistral AI in France securing €1.7 billion, Nscale in the UK raising €958 million, and Stanhope AI and Helsing in the UK and Germany respectively receiving significant funding to advance their AI initiatives.

Encord’s universal data layer for AI has garnered the trust of over 300 AI teams, including renowned companies like Toyota, Zipline, AXA, and Skydio. The platform assists these teams in effectively managing, curating, annotating, and aligning diverse forms of data crucial for the operation of physical AI systems.

The company’s latest funding injection signifies a pivotal moment for physical AI, with projections indicating substantial growth in the industry. As the demand for physical AI solutions intensifies, Encord stands at the forefront, providing the essential infrastructure to support the transition of these systems from experimentation to deployment.

In response to the escalating demand, Encord has witnessed significant growth in data volume and revenue from physical AI customers. The company’s platform now hosts over 5 petabytes of data, a substantial increase from just 1 petabyte a year ago, underscoring the surging interest in leveraging physical AI capabilities.

Eric Landau, co-founder and co-CEO of Encord, expressed optimism about the future, highlighting the pivotal role of quality data in enhancing AI models’ performance. He emphasized the significance of building robust infrastructure that continuously supports the evolution and improvement of AI systems in real-world scenarios.

The funding secured by Encord will not only drive product innovation but also facilitate expansion into new markets, ensuring that the company remains at the forefront of the burgeoning physical AI landscape. As the industry gears up for transformative growth, Encord is poised to play a pivotal role in shaping the future of AI-driven technologies.