ASI Raises $325M Series C at $3B Valuation on Strength of FAA and Army Contracts

Quick Facts

• ASI closed a $325 million Series C led by Spark Capital, valuing the company at $3 billion.
• The raise follows an $875 million FAA contract and a $99 million U.S. Army contract won in 2026.
• Andreessen Horowitz, Craft Ventures, Meritech Capital, Citadel Securities affiliates, and Energy Impact Partners also participated in the round.

Boston-based AI infrastructure startup ASI has raised $325 million in a Series C round, hitting a $3 billion valuation, the company announced on Oct. 20. Spark Capital led the financing, with participation from affiliates of Citadel Securities, Meritech Capital, Craft Ventures, Energy Impact Partners, and Andreessen Horowitz.

The company, formerly known as Air Space Intelligence, rebranded and relocated from Silicon Valley to Boston in 2024. CEO Phillip Buckendorf founded the company and previously worked in robotics. CTO Kris Dorosz holds a doctorate and has built AI systems for human-machine decision-making.

What ASI Builds

ASI develops AI models designed to simulate and optimize physical operations in real time. Its systems combine deterministic and probabilistic modeling to help operators anticipate disruptions before they cascade. The company targets transportation, energy, and military customers that cannot accept the errors common in general-purpose large language models.

In air traffic management, ASI's software pulls in flight path data, weather, runway capacity, and controller staffing to predict congestion and recommend solutions before delays occur. That capability sits at the center of its largest contract win to date.

The Government Contracts Driving Growth

In June 2026, the U.S. Department of Transportation and the Federal Aviation Administration awarded ASI an $875 million, 12-year contract to modernize the National Airspace System. ASI beat out Palantir Technologies and Thales, both of which made aggressive bids for the award. The company's SMART system, which stands for Strategic Management of Airspace, Routes and Trajectories, is already deployed at Dulles International Airport in Washington, D.C., with a planned rollout to all major U.S. airports.

That win alone made ASI one of only four technology companies to land a federal contract of that size since 2000. In October 2026, the U.S. Army added a $99 million, five-year contract to scale ASI's technology across its Next Generation Command and Control program. Combined, the two federal contracts total $974 million.

The Defense Innovation Unit awarded ASI a Phase 2 prototype agreement in September 2026 to build the Open Mission Engine, an open software platform for the U.S. Air Force's Mobility Air Forces. A separate DIU contract was awarded in February 2026 for advanced logistics decision support. ASI President of Federal Operations Mark Lepczyk said the platform will let the Air Force deploy mission applications at a speed and scale that previous efforts could not match.

Commercial Traction

ASI's government wins are matched by a growing commercial roster. Delta, United, and Alaska Airlines are customers, as is utility provider National Grid and SpaceX. The U.S. Air Force uses ASI's technology to support more than 4,000 operators. Alaska Airlines saves roughly one million gallons of fuel per year using ASI's Flyways product, according to reporting citing Reuters data.

What the Round Signals

The Series C reflects growing investor appetite for AI software applied to physical operations rather than text generation. ASI operates in sectors where errors carry serious consequences, a positioning that sets it apart from general-purpose AI vendors competing for the same enterprise budgets.

Craft Ventures, which participated in the round, was co-founded by David Sacks, the former White House AI adviser. The presence of Sacks's firm alongside a16z and Citadel Securities affiliates signals confidence that AI built for regulated, high-stakes industries carries durable commercial value.

The company did not disclose how it plans to deploy the new capital, but its expansion into energy and broader military programs suggests headcount and infrastructure growth are likely priorities.