BMW i Ventures launched its third fund, which will focus on physical and agentic artificial intelligence, industrial software, manufacturing technologies, supply chain technologies and advanced materials.

The fund is fully backed by the BMW Group, totaling a $300 million investment across North America and Europe, under the premise “that AI will fundamentally reshape how the automotive industry operates and creates value across its entire ecosystem.”

“BMW i Ventures is launching the third fund at the perfect time: AI has shown its tremendous potential to transform products, operations, and entire value chains,” said BMW Group CEO Oliver Zipse.

“Through BMW i Ventures and Fund III, we are best prepared to leverage these opportunities: We can anticipate shifts early, act quickly and efficiently on innovations, and remain at the forefront of our industry.”

The automaker explained that the agentic AI will focus on automating complex workflows in industrial environments and that the physical AI will enable robots and autonomous machines to “perceive, plan and act safely in the real world.”

Circularity is a “core investment pillar” for the group's VC arm, meaning products and processes that reduce waste and reuse materials. Fund III includes “technologies that support recycling and recovery of critical materials, circular manufacturing processes and new materials that combine performance improvements with more efficient resources.”

BMW Group says the investments are intended to help it gain insight into emerging trends and strengthen its long-term competitiveness and integration of new technologies.