The consolidation is happening overseas, too. Yesterday, European defense darling Helsing announced they’ve acquired German aircraft company Grob Aircraft for an undisclosed amount.
According to Helsing, the partnership will combine Grob’s “expertise in composite aircraft manufacturing with Helsing’s artificial intelligence (AI) and software solutions, [unlocking] significant potential for innovation and growth.”
Troubled waters: Despite being the most valuable defense tech startup in Europe (valued at €5B, or $5.71B), Helsing has been having a rough time lately.
Last December, the company unveiled its HX-2 strike drone—which it said was already fielded in Ukraine—and in February announced that it was building a factory in Germany to build even more drones for the country.
But in April, reporting by Bloomberg alleged that users were having trouble with the company’s flagship AI software—it was glitchy—and that its drones were super-pricey and less effective compared to others available. Helsing, however, stands by its tech, saying it’s “first-in-class.”
A major strategic partnership with Rheinmetall AG, one of Europe’s largest defense primes, also fell apart last year.
Flying high: The Grob acquisition, however, indicates that Helsing is pushing forward with AI-powered aircraft.
- The aircraft manufacturer uses “composite aircraft technology ensures lightweight, durable, and aerodynamic designs,” according to the release, which are “an ideal platform for Helsing’s AI capabilities.”
- Helsing and Grob have already worked together—Grob aircraft were used in the development of Helsing’s AI-powered Cirra threat-detection software, which runs onboard combat aircraft.
The two companies say they will work together to “test and mature relevant hardware, software and AI capabilities for the future of air combat.” In particular, Helsing says Grob will give it a leg up in the development of composite aircraft.
“Our competencies complement each other perfectly, our growth ambitions are congruent,” Helsing Co-Founder and Co-CEO Gundbert Scherf said in a statement, “and we are both absolutely determined to bolster Europe’s defense sovereignty.”