Pasteur Labs acquires AI startup FOSAI, to accelerate adoption of AI-driven physics simulation for space & defense applications

Strategic acquisition combines Pasteur's next-generation physics simulation platform with proven autonomous systems integration expertise for critical systems and dual-use markets.

NEW YORK, Aug. 21, 2025 /PRNewswire/ -- Pasteur Labs, the pioneering developer of Simulation Intelligence (SI) technologies and applications that natively integrate AI/ML and physics simulation, today announced its acquisition of FOSAI, a specialized provider of space systems & autonomy solutions for the aerospace and defense sectors. The acquisition positions Pasteur Labs to bring its state-of-the-art AI-driven simulation capabilities to even more real-world applications, powered by FOSAI's track record of success in mission-critical deployments.

FOSAI has established itself as a trusted partner for US Space Force, DARPA, and multiple commercial aerospace companies and defense primes. The company's expertise centers on creating digital platforms for seamless system integration, offering plug-and-play solutions and comprehensive data services integration that enable next-generation capabilities in demanding, contested operational environments, including AI on forward-deployed space vehicles.

"This acquisition represents a natural evolution of our mission to bridge the gap between breakthrough simulation-based R&D and real-world impact," said Alexander Lavin, CEO of Pasteur Labs. "FOSAI's deep expertise in dual-use software systems integration, combined with their proven ability to deliver mission-critical solutions, gives us the pathway to deploy our Simulation Intelligence Platform where it can create the most value: in domains that demand both cutting-edge innovation and unwavering reliability."

Pasteur Labs' Simulation Intelligence Platform enables human-machine teams to efficiently explore exponentially larger spaces of industrial R&D hypotheses and solutions, in sectors from aerospace and automotive to nuclear energy and datacenters. Now with FOSAI's specialized knowledge in systems architecture, Pasteur aims to address the critical challenge of successfully integrating next-generation AI-native digital engineering into legacy operational systems.

"The future of autonomous systems in sectors like aerospace and defense depends on our ability to model multi-scale phenomena and their cause-effect mechanisms with unprecedented accuracy and speed," said Gregory Falco, CEO of FOSAI. "Pasteur Labs' approach to combining AI with physics simulation creates exactly the kind of foundation our most demanding applications require. Our experience with dual-use customers suggests this is the de facto standard platform for AI-driven simulation they're looking for."

FOSAI's work has historically focused on providing specialized technical capabilities for federal initiatives, often operating as the technical engine behind critical government programs. While much of their work involves confidential applications due to the sensitive nature of defense and aerospace requirements, their publicly acknowledged projects demonstrate expertise in creating robust, scalable platforms that can handle the most challenging integration scenarios.

The acquisition comes as Pasteur Labs prepares for the public launch of its platform later in 2025, with a packed lineup of data generation products and end-to-end physics-AI applications to follow. The company's international team includes industry veterans from NASA, Tesla, Nvidia, Ansys, and more, bringing together complementary expertise spanning multi-physics modeling, accelerated and distributed computing, cooperative AI, probabilistic ML, causal reasoning, inverse engineering, and human-machine teaming.

"We're not just acquiring a company – we're gaining access to the practical wisdom that comes from successfully deploying advanced technologies in the most demanding environments," added Lavin. "This positions us to ensure that our simulation breakthroughs translate into real and reliable operational advantages."

The financial terms of the acquisition were not disclosed. Integration is already underway, with both teams working to identify the highest-impact opportunities for applying combined capabilities, and deploying pre-release versions of the Simulation Intelligence Platform to dual-use customers.

About Pasteur Labs

Pasteur Labs invents, validates, and scales new approaches integrating AI and simulation. The company's Simulation Intelligence Platform provides in-silico playgrounds for human-machine teams tackling pressing challenges across industrial R&D. Named for "Pasteur's quadrant" of use-inspired R&D, the company balances clear problem-solving with required scientific advances. Learn more at pasteurlabs.ai.

About FOSAI

FOSAI specializes in digital platform development for system integration, plug-and-play architectures, and data services integration for autonomous systems in aerospace and defense applications. The company has worked on projects with DARPA, US Space Force, and other critical initiatives in federal and commercial sectors, providing the technical foundation for advanced autonomous capabilities.

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SOURCE Pasteur Labs