Hardware-Testing Startup Nominal Raises $240 Million at $3 Billion Valuation
Nominal, a US-based startup developing artificial intelligence software for hardware engineering and testing, has raised $240 million in a Series C funding round at a $3 billion valuation.
The funding round was announced on November 9, 2026, and led by Lightspeed Venture Partners, with Insight Partners serving as co-lead investor. Other participating investors include Lux Capital, Sequoia Capital, General Catalyst, Founders Fund, Avenir, Salesforce Ventures, M13 and Lockheed Martin Ventures.
The latest valuation represents a threefold increase from the $1 billion valuation the company achieved earlier in 2026.
Building an AI Platform for Hardware Engineering
Founded in 2022, Nominal develops software that helps engineering teams collect, analyse and manage data generated during hardware development and testing.
Its platform is designed for industries where complex physical systems need extensive testing and validation, including aerospace, defence, robotics, energy and advanced manufacturing.
Traditional engineering workflows often involve data spread across different instruments, software applications and teams. Nominal aims to bring this information together so engineers can investigate performance issues, compare test results and make decisions using connected engineering data.
The company is positioning its platform as an intelligence layer for hardware development, combining engineering information with AI-powered analysis tools.
AI Agents Support Complex Engineering Workflows
Nominal is expanding its platform with AI capabilities designed to help engineers analyse complex datasets and investigate technical problems.
Its first AI agent, Nominal Analyst, can examine engineering data and conduct analyses while providing answers that can be traced to the underlying evidence.
The platform is designed to support engineers working across cloud environments, on-premises infrastructure and air-gapped systems.
Rather than replacing engineering decision-making, the technology aims to reduce manual analysis and help teams investigate problems more efficiently.
Defence and Aerospace Companies Drive Adoption
Nominal reports that more than 80 commercial and government organisations use its platform, including five of the seven largest defence contractors.
Its customers include Anduril Industries, Huntington Ingalls Industries (HII) and aerospace company Hermeus.
At Anduril, more than 300 engineers use Nominal across different programmes. The company also reported that certain analysis tasks at HII were reduced from hours to minutes through its platform.
In addition, the US Air Force selected Nominal for a $71.2 million Strategic Funding Increase (STRATFI) award supporting Collaborative Combat Aircraft capabilities.
These developments demonstrate the company's growing presence in defence and advanced engineering markets.
Funding to Accelerate Product Development and Expansion
Nominal plans to use the new $240 million investment to expand its engineering platform, develop additional AI agents and applications, and enter new industries and geographical markets.
The company is also exploring strategic acquisitions to strengthen its technology capabilities.
Earlier in 2026, Nominal acquired Fid Labs and Pull Systems, expanding its work in AI agents and automotive engineering workflows.
The latest funding is expected to support its broader ambition of building an integrated platform covering different stages of the hardware lifecycle, from design and testing to manufacturing and operational monitoring.
Growing Investment in Industrial AI
Nominal's funding round reflects increasing investor interest in AI applications beyond traditional software development and consumer-facing tools.
As industries invest in aircraft, autonomous systems, robotics, energy infrastructure and advanced manufacturing, engineering teams are looking for technologies that can improve testing, validation and operational efficiency.
AI platforms that connect engineering data with practical workflows could become increasingly important in these sectors.
Nominal's latest investment highlights the growing role of specialised AI software in helping companies develop and validate complex physical systems.
