Summary
The author argues that Layer 2 (simulation, synthetic data, digital twins) is essential for Physical AI to operate in the real world, and he has purchased a high-quality infrastructure software company that already generates revenue from designing, simulating, and monitoring physical assets. This position offers current business quality with future upside as infrastructure becomes more digital and AI-assisted, though the company's identity is not disclosed in the public portion of the newsletter.
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•The author added a company from Layer 2 of his Physical AI portfolio, which focuses on simulation, synthetic data, and digital twins.
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•The company sells software used to design, simulate, build, inspect, monitor, and operate physical infrastructure (roads, bridges, utilities, dams, power lines, etc.).
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•The author views the company as already a real, high-quality infrastructure software business today, with additional optionality from the Physical AI theme.
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•This is the author's third position in a Physical AI portfolio being built from scratch; the company is not named in the public text.