Applied Intuition's $600M Push to Rewire Driving

Applied Intuition's $600M boost accelerates SDV tools as automakers face pressure for safer, smarter, cheaper cars.

19 Jun 2025

Applied Intuition has secured $600mn in fresh funding, lifting its valuation to $15bn and underlining the growing centrality of software in the car industry. The investment is one of the largest recent bets on vehicle technology and reflects mounting competition to shape the future of software-defined vehicles.

The round was led by funds managed by BlackRock and venture capital firm Kleiner Perkins, alongside Franklin Templeton, the Qatar Investment Authority and the Abu Dhabi Investment Council. Their backing points to broad conviction that next-generation mobility will be defined more by code than hardware.

Applied develops simulation tools that enable carmakers to design and test complex vehicle systems virtually, reducing reliance on costly real-world trials. The company argues its platform speeds up development cycles and strengthens safety as manufacturers face stricter regulatory standards.

Industry analysts noted the funding comes at a critical moment, as automakers grapple with demands for advanced features, tighter cybersecurity and new safety requirements. The company is expected to use the capital to expand engineering teams, explore acquisitions and consolidate its position as a supplier of core software tools.

The scale of the deal is also expected to have knock-on effects. Smaller rivals may find it harder to compete, while carmakers could grow more dependent on Applied's systems. Regulators, meanwhile, may scrutinise how simulation compares with physical testing, an issue seen as central to public confidence in the technology.

Despite those uncertainties, investors see momentum building. The funding round signals widespread belief that the next phase of automotive innovation will be software driven, promising faster development, lower costs and vehicles that are more intelligent and adaptable.

At $15bn, Applied Intuition now sits among the most highly valued private companies in mobility technology, positioning itself as a key player in the race to redefine the modern car.