Causal Labs, an AI company pioneering physics-based models to solve large-scale challenges, has secured $6 million in seed funding. The round was led by Kindred Ventures, with additional backing from Refactor, BoxGroup, Factorial, Otherwise, Karman Ventures, and select angel investors. The investment will fuel the development of its AI-powered weather prediction models and expand their applications across industries.
Unlike traditional forecasting methods that rely on supercomputers to generate predictions over extended timeframes, Causal Labs employs AI-driven physics simulations to produce rapid, accurate forecasts. This approach could redefine how industries manage climate risks, improving responses to extreme weather events and natural disasters.
Weather forecasting has long depended on computationally intensive simulations that take hours or even days to process. Causal Labs is introducing a faster, AI-powered alternative that simulates atmospheric conditions in real time. By leveraging physics-based AI, the company aims to improve forecasting accuracy while reducing the computational costs associated with traditional models.
“Our model will be informed by the laws of physics, opening a world of possibilities for future use cases in the physical world,” said Dar Mehta, co-founder and CEO of Causal Labs. “We see a unique opportunity to shift the current paradigm of AI research from LLMs to physics-based models, beginning with weather—a critical and universal challenge that touches every individual, business, and community.”
With the new funding, Causal Labs plans to strengthen its team, enhance its models' safety and transparency features, and launch pilot programs across key industries. While its initial focus is on weather prediction, the company envisions broader applications for its physics-driven AI, including aviation, agriculture, energy, space, and government sectors.
The AI model aims to go beyond just forecasting by enabling proactive decision-making. Whether through interventions in atmospheric conditions or optimizing operations in climate-sensitive industries, the technology could provide new tools to mitigate environmental risks and maximize efficiency.
Causal Labs was founded by Kelsie Zhao and Dar Mehta, seasoned AI engineers with extensive experience in building safety-critical and multi-modal AI models. Zhao played a key role in developing self-driving technology at Cruise, while Mehta has worked at Google Research, Meta, and a YC-backed robotics startup. Their combined expertise positions the company to make significant advancements in AI-powered physics modeling.
In addition to Kindred Ventures, the funding round saw participation from well-established firms, including Refactor, BoxGroup, Factorial, Otherwise, and Karman Ventures.
“Causal Labs’ AI-driven physics model research represents a major leap forward in decision-making technology in the real world,” said Steve Jangof Kindred Ventures. “We’re thrilled to support their mission to transform how industries operate and thrive with greater intelligence and autonomy in the face of complex, physics-based challenges across many industries and regions around the planet.”
