Eclipse Closes $1.3B Fund to Back Physical AI Startups Across Manufacturing, Defense, and Robotics

Eclipse Secures $1.3 Billion Fund to Accelerate Physical AI Investments

Venture capital firm Eclipse has closed a $1.3 billion fund to back startups developing physical AI technologies that address real-world challenges across multiple industries 1

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. The Palo Alto-based firm disclosed the fundraising in filings with the Securities and Exchange Commission, marking its largest capital raise to date and surpassing the $1.23 billion it secured in 2023 2

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. The new capital is divided into two distinct vehicles: a $720 million fund for early-stage investments and a $591 million incubation fund oriented toward growth startups 2

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Founded in 2015 by Lior Susan, Eclipse has spent over a decade building a portfolio focused on what it describes as national strength and security through physical industries 2

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. Partner Jiten Behl characterizes this moment as the beginning of a new technological era where intelligence moves beyond screens into tangible applications. "This is the first time where stuff is going to move from our screens into the physical world; we're going to see advanced levels of intelligence, along with actual actions, in terms of solving problems in the real, physical world," Behl explained 1

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Hard Tech Investments Gain Momentum Amid Geopolitical Shifts

The timing of Eclipse's capital raise reflects broader investor enthusiasm for hard tech investments driven by advances in AI infrastructure and mounting geopolitical influences 2

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. President Donald Trump's emphasis on international tariffs has sparked renewed efforts to revitalize US manufacturing, creating opportunities for startups in physical industries 2

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. This year alone, Eclipse co-led a $220 million funding round for American manufacturing startup VulcanForms, demonstrating its commitment to investing in startups that strengthen domestic production capabilities 2

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The venture capital landscape has witnessed significant activity in sectors beyond traditional software. Nuclear energy upstart Valar Atomics recently achieved a $2 billion valuation, while robotics-focused startup Physical Intelligence has been in discussions for an $11 billion valuation 2

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. Defense tech company Anduril Industries has pursued funding at a valuation exceeding $60 billion, signaling strong market appetite for technologies addressing national security concerns 2

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Building an Interconnected Ecosystem of Portfolio Companies

Eclipse's investment strategy extends beyond simply backing individual startups. The firm is constructing what Behl describes as a web of portfolio companies in overlapping fields that can partner as they scale 1

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. "Scale is so important, and if you can put it together in a way where companies partner early on to build scale, to build proof points, and it just then enables them to go after the next set of demand," Behl noted 1

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. This approach encourages portfolio companies to collaborate directly while also working with each other's partners to accelerate growth.

The firm's existing investments showcase its focus on physical AI and related technologies. Eclipse is an early backer of Cerebras Systems, a rival to Nvidia that is expected to go public as soon as April, with founder Lior Susan serving on its board 2

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. Other notable investments include self-driving software startup Wayve, which Eclipse co-led through its Series D fundraising in February, and Redwood Materials, a $6 billion battery supply chain company 2

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. The portfolio also includes electric boat developer Arc, self-driving construction vehicle startup Bedrock Robotics, autonomous vehicle tech company Wayve, and industrial robotics lab Mind Robotics 1

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Eclipse plans to target investments across transportation, energy, infrastructure, compute, and defense sectors 1

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. The firm will also incubate companies directly, with Behl confirming that this process has already begun. "We're definitely working on a couple of really cool ideas," he said, noting particular interest in startups that operate across enterprises 1

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. The firm's thesis centers on connecting sectors and using shared data to train smarter AI models that benefit a broader group of companies, creating competitive advantages through cross-sector collaboration 1

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