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Boston AI firm valued at $3 billion after winning big contracts from the FAA and US Army

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Source: The Boston Globe
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A few months after landing a huge government contract, the AI transportation company ASI will be taking off to new heights with a significant infusion of venture capital. The Boston company, which relocated from Silicon Valley in 2024 and changed its name from Air Space Intelligence, said on Tuesday it had raised $325 million from a group of investors led by Spark Capital and including industry giant Andreessen Horowitz and Craft Ventures, the firm cofounded by former White House AI czar David Sacks. The deal values ASI at $3 billion, the company said. The company is developing AI models for use in key parts of the transportation, energy and military industries, which can’t afford to rely on the hallucination-prone large language models developed by OpenAI, Anthropic, and others. In June, ASI won a 12-year, $875 million contract from the US Department of Transportation and Federal Aviation Administration to modernize the National Airspace System, which tracks and guides aircraft across the country. This month, the Army awarded ASI a five-year, $99 million contract for command and control software.

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