21. Applied Intuition

Founders: Qasar Younis (CEO), Peter Ludwig
Launched: 2017
Headquarters: Sunnyvale, California
Funding: $850 million
Valuation: $15 billion
Key Technologies: Artificial intelligence, autonomous vehicles, robotics
Industry: Automotive
Previous appearances on Disruptor 50 list: 0

Applied Intuition is an AI-first company that is leveraging the world of physical AI, a new sphere of artificial intelligence forecast to grow into as much as a trillion-dollar market over the next decade. The company's core advantage is advanced AI software that can simulate and validate autonomous systems for cars, trucks, robots, drones, tactical aircraft and more, with less cost and risk. 

"Bringing intelligence to moving vehicles" is how CEO Qasar Younis describes the company's mission.

Younis — a Pakistani-American and former COO of Y Combinator who grew up in Detroit and attended the GM Institute (now Kettering University) — and CTO Peter Ludwig are automotive enthusiasts who met while working at Google, clicked, and set out as co-founders of Applied Intuition in 2017. 

"You're starting to see proliferation into the mainstream," Younis told CNBC in August when the company launched a self-driving system for passenger vehicles that he compared to offerings from Tesla, Waymo and Huawei. "The rise of intelligent machines is the next big wave in AI," he said.

"Over the next five to 10 years, autonomy will be very common and we are just talking about passenger vehicles, but this is happening in defense, in construction and mining ... everything is getting automated," he said.

The automotive market remains a core customer category for the company, including GM and Toyota and a total of 18 out of the top 20 global automakers. Applied Intuition's AI expertise is seen as a way for traditional automakers to compete with electric vehicle makers like Tesla and Rivian, as well as Chinese EVs, as they seek to build and scale their autonomous tech stack. Its integrated technology is also seen as having the potential to disrupt Waymo, and it competes with startups across the globe, from Wayve in London to Momenta in Beijing.

Younis says the feeling in the markets and in the U.S. more broadly that the Chinese threat in AI needs to be a top priority is no exaggeration. "We're still the leader, but that could change. The apprehension and anxiety is absolutely accurate," he told CNBC.    

The co-founders have pushed over the years into more defense work, which has benefited the company amid the Pentagon's AI warfare strategy and a massive budget request this year to modernize the military. It's an area that multiple Disruptor companies are focused on and profiting from in terms of both VC valuations and DoD deals, including Anduril, Saronic and Shield AI. 

"We build for commercial and the DoD, and the primes themselves," Younis said. "There is surprising overlap in how you build a car and tank," he added.

It recently teamed up with the Department of Energy to build out a simulated missile defense environment as a proving ground for the "Golden Dome" shield; won a $171 million simulation testing contract from the Department of Defense; and also recently struck a deal with the U.S. Navy.

Applied Intuition also acquired EpiSci last year to integrate its tactical AI, and forged an alliance with defense business SNC to fast-track autonomy on the battlefield.

"Maybe 10 years ago, people in Silicon Valley were resistant to working on defense tech. ... I think all of that is gone," Younis told CNBC. "In our defense business, we've seen that change."

The company says it has been profitable for its entire history, with a valuation that has reached about $15 billion as of a fundraising round last year of $600 million from investors including Andreessen Horowitz, BlackRock and Fidelity. But the company has been shy about commenting on any IPO plans.