Laplace Intelligence, a University of Michigan spinout founded by Howie Sun and Henry Liu, is developing AI-driven red-teaming technology to test robots and self-driving vehicles in highly realistic simulations before they are deployed. Their automated stress-testing approach focuses on uncovering rare edge cases and failure scenarios by using AI agents to challenge physical AI systems in interactive, real-world grounded environments. This method aims to improve safety and reliability in physical AI applications by catching issues early in simulated settings.

The startup leverages advanced simulation technology built on Nvidia’s Cosmos platform combined with real-world data such as Google Street View images and live traffic information from providers like TomTom. Their system can recreate environments ranging from city streets to highways with accurate scale and dynamic participant behaviors that respond naturally to test scenarios. This interactive world model enables Laplace to simulate complex and unusual situations, pushing autonomous vehicles and robots to their limits in controlled conditions.

Since its launch a year ago, Laplace has gained paying customers in the autonomous vehicle sector, including Texas-based Bot Auto and a major Japanese car manufacturer. They are also collaborating with Nvidia and T-Mobile on a smart city pilot in San Jose, California, as well as exploring partnerships in humanoid warehouse robotics. While currently focusing on project-based deals, Laplace is working toward building a scalable recurring revenue model to expand its market presence and compete with well-funded rivals like Applied Intuition.

Laplace is competing in Startup Battlefield 200 at TechCrunch Disrupt 2026, highlighting its innovative testing paradigm that uses AI to test other AI systems, which co-founder Sun believes will be a strong competitive advantage. The company’s mission is to create a trusted, evidence-backed foundation for customers, insurers, and regulators to ensure physical AI safety ahead of real-world deployment. With increasing demand for reliable autonomous systems, Laplace aims to raise funds and grow its footprint in the emerging market for physical AI validation.