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London-based deep tech startup Stanhope AI has secured $8 million (approximately €6.7 million) in seed funding to develop a new generation of adaptive artificial intelligence. The company’s technology aims to move beyond the limitations of current AI systems, particularly large language models (LLMs), by enabling machines to perceive, reason, and act in complex, real-world environments. This funding round, announced February 12, 2026, was led by Frontline Ventures with participation from Paladin Capital Group, Auxxo Female Catalyst Fund, UCL Technology Fund, and MMC Ventures.
The core of Stanhope AI’s approach lies in its “Real World Model,” a framework inspired by principles from neuroscience and computational theory. Unlike LLMs that excel at pattern recognition based on vast datasets, Stanhope’s AI is designed to learn and adapt on the fly, operating efficiently with limited data, and power. This focus on adaptability is crucial for applications in dynamic settings like robotics, autonomous vehicles, and, increasingly, defence systems.
“We’re moving from language-based AI to intelligence that possesses the ability to act to understand its world – a system with a fundamental agency,” said Professor Rosalyn Moran, CEO and co-founder of Stanhope AI. Her team builds upon the work of Professor Karl Friston, a theoretical neurobiologist at UCL’s Institute of Neurology, and his research into the Free Energy Principle, a framework explaining how intelligent systems minimize uncertainty through continuous perception and action.
Building AI Inspired by the Brain
Stanhope AI’s technology leverages a brain-inspired paradigm known as ‘Active Inference,’ allowing machines to learn and adapt in real-time. This contrasts sharply with traditional AI systems that rely on static datasets and often struggle with unpredictable situations. The company’s focus on edge computing – processing data directly on the device rather than in the cloud – is a key differentiator, enabling reliable operation in environments with limited connectivity or processing power. This shift towards on-device AI is gaining momentum, as highlighted by industry leaders like NVIDIA, who recently noted the arrival of a “ChatGPT moment” for physical AI (UCLB).
Founded in 2023 as a spin-out from University College London and King’s College London, Stanhope AI is already testing its technology on drones and other autonomous platforms with international partners. The company’s technology has potential applications in industries including manufacturing and aerospace, where adaptive behaviour under uncertainty is critical.
Investor Confidence in Adaptive AI
The $8 million seed round reflects growing investor interest in AI and autonomy startups across Europe. Zoe Chambers, a partner at Frontline Ventures, highlighted Stanhope AI’s unique ability to translate academic research into production-ready systems, noting the technology’s potential in domains requiring real-time adaptation (UK Tech News). Christopher Steed of Paladin Capital Group emphasized the relevance of adaptive AI for critical and security-sensitive applications (Paladin Capital Group).
The funding builds on a previous £2.3 million funding round in 2024, demonstrating continued confidence in Stanhope AI’s vision. The company’s approach is particularly relevant as industries seek AI solutions that can operate reliably in unpredictable environments, moving beyond the limitations of purely data-driven models.
Stanhope AI’s technology aims to address a critical gap in the AI landscape: the ability to create systems that can not only process information but also understand and react to the complexities of the physical world. The new capital will be used to accelerate the deployment of its Real World Model, pushing the boundaries of adaptive intelligence in robotics, industrial automation, and defence.
As Stanhope AI moves forward, the focus will be on expanding field trials and forging partnerships to integrate its technology into real-world applications. The success of this venture could pave the way for a new era of AI-powered systems capable of operating autonomously and intelligently in even the most challenging environments.
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