Jeff Bezos’ new AI startup Prometheus is building an Artificial General Engineer

Prometheus, the physical Artificial Intelligence (AI) startup co-founded by Jeff Bezos and Vik Bajaj, the former co-founder of Verily, Google’s life sciences unit, announced it raised $12 billion at a $41 billion valuation. The new funds came from Bezos, as well as from JPMorgan Chase, Goldman Sachs, and BlackRock, among others.

This is the second fundraise round for Prometheus, which launched late last year with an initial raise of $6.2 billion, .

Prometheus is building what it calls an “Artificial general Engineer” – a Robo-Engineer – that’s capable of automating the design and manufacturing of complex physical systems, from jet engines to drug compounds.

The ambition is sweeping: replace large swaths of engineering work with AI. Although the startup will automate many aspects of an engineer’s job, Bezos told CNBC that the productivity gains AI delivers will lead to what he calls “labour scarcity” — his term for a world where demand for human workers outpaces supply.

That puts him at odds with a number of prominent voices in tech. While some AI leaders predict widespread job losses, Bezos sees it differently.

“Significant productivity in the economy is going to raise the standard of living,” he said. “People who today have two-earner households, they’ll become one-earner households. Maybe some people who are working overtime will stop working overtime.”

The company, which currently has 150 employees across offices in San Francisco, London, and Zurich, is keeping the specifics of what it has already built under wraps.

Bezos indicated that a large portion of the capital will go toward the company’s large compute needs.

Bezos knows something about labour at scale. Amazon — where he serves as executive chairman and is the largest individual shareholder — employs more than 1.5 million people worldwide and over the past year, under CEO Andy Jassy, has laid off tens of thousands of people as the company has accelerated its own automation push.

At $41 billion, Prometheus is one of the most richly valued AI startups ever funded, and one of the largest single bets on the physical AI sector. But it isn’t the only company attracting massive investor interest. In recent months, venture capitalists have increasingly poured capital into physical or Embedded AI, a booming sector that investors and founders argue is inherently more defensible than pure software — because the physical world creates moats that code alone cannot.

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What exactly is an "Artificial General Engineer"?
It is Prometheus's term for an AI system that can automate the design and manufacturing of complex physical things - jet engines, drug compounds and more - rather than just generate text or code, which is why investors see physical AI as harder to copy than pure software.