ASI Hits $3 Billion Valuation in $325 Million Round Led by Spark

Startup ASI raised $325 million in new funding from investors, allowing the company to expand an artificial intelligence system that helps the military, airlines and air-traffic controllers manage assets.

The series C round was led by Spark Capital and included participation from Craft Ventures, Andreessen Horowitz and affiliates of Citadel Securities, among others, the company is due to announce Tuesday. The transaction values the Boston-based startup, previously known as Air Space Intelligence Inc., at $3 billion.

ASI is part of a resurgence in US defense and aerospace technology startups, which have capitalized on growing interest from investors and government agencies in using AI.

In June, ASI won an $875 million Federal Aviation Administration contract, beating out Palantir Technologies Inc. and Thales SA, to deploy AI to manage US air traffic. The system combines lots of datasets — including weather, flight paths and controller staffing — to predict congestion and recommend ways to reduce delays and cancellations.

The FAA began rolling out the technology in September, initially using it in a limited way around Washington. The agency plans to gradually expand it across the country.

ASI will use the new funding to bolster AI research and its engineering teams, while deploying the technology to new fields. Other backers in the round include Energy Impact Partners and Meritech Capital.