Ukraine's AI Leap with Google, Lockheed's Drone Tests, and $105M for AI Drones - Defense AI Brief #21

December 16, 2025 - Defense AI Brief
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Welcome to this week's edition of Defense AI Brief.

Ukraine is making strides in AI development by utilizing Google's Gemma framework to enhance both military and civilian services. This initiative will initially rely on Google's infrastructure before transitioning to local systems for greater control. Meanwhile, Lockheed Martin Skunk Works has successfully demonstrated the use of AI in drones for mission management, showcasing the technology's ability to adapt to unexpected challenges during operations.

In other news, Ukrainian DefenceTech startups have collectively raised over $105 million in 2025 to advance drone innovations, positioning the country as a leader in early-stage DefenceTech within Europe. Additionally, Quantum Systems has secured a significant €210 million contract to supply 520 Falke surveillance drones to the German military, with deliveries slated for 2026. The U.S. War Department has also launched GenAI.mil, a new AI tool designed to support military operations, in collaboration with the Interior Department to bolster border security efforts.
Ukraine Develops AI System with Google Technology
Ukraine is working on an AI system using Google's Gemma framework to improve military and civilian services, initially leveraging Google's infrastructure before moving to local systems. Read more
Lockheed Martin Tests AI on Drones
Lockheed Martin Skunk Works demonstrated AI-driven mission management using drones, showcasing AI's ability to handle mission adjustments and fuel contingencies autonomously. Read more
Ukrainian DefenceTech Startups Secure $105 Million for AI Drones
In 2025, over 50 Ukrainian DefenceTech startups raised more than $105 million for drone innovations, positioning Ukraine as a European leader in early-stage DefenceTech. Read more
Quantum Systems Wins €210 Million German Army Drone Contract
The startup Quantum Systems has secured a €210 million contract to provide 520 Falke surveillance drones to the German military, with deliveries expected in 2026. Read more
U.S. War Department Launches GenAI.mil for Military Operations
The U.S. War Department has introduced a new AI tool, GenAI.mil, to support military tasks, and has partnered with the Interior Department to enhance border security. Read more
C3 AI Chosen by U.S. Army for AI Logistics Solution
C3 AI has been selected by the U.S. Army to provide an AI-driven logistics solution aimed at enhancing combat operations by improving forecasts for essential supplies. Read more
Magnet Defense Unveils AI-Enabled Maritime Platform M48
Magnet Defense LLC has introduced the M48, an autonomous unmanned surface vessel designed for high-risk maritime operations. This launch follows over two years of development and comes amid increasing demand for unmanned maritime solutions due to global tensions. Read more
U.S. Defense Tech Firms Face Growth Challenges
U.S. defense technology companies, supported by Silicon Valley, are encountering challenges as they grow from startups to major defense players, despite increased Pentagon contracts. Read more
AvaWatz Wins Prime Contractor Role for SHIELD Program
AvaWatz has been awarded prime contractor status on the U.S. Missile Defense Agency's $151 billion SHIELD contract, focusing on defense modernization using AI and Machine Learning. Read more
Exia Labs Chosen for AI Project with U.S. Navy
Exia Labs has been selected by the Defense Innovation Unit to enhance AI-enabled decision-making for the U.S. Navy through the Blue Object Management Challenge. Read more
Castelion Raises $350 Million for Hypersonic Weapons
Castelion has secured $350 million in Series B funding to boost the production of hypersonic weapons, aligning with Pentagon priorities. The funds will aid in integrating the Blackbeard weapon with military platforms and building a new production facility. Read more
SkyFi Joins NATO DIANA 2026 for AI Geospatial Solutions
SkyFi has been selected for the NATO DIANA 2026 Challenge Programme to enhance its AI-driven geospatial platform, chosen from 150 companies out of 3,600 applications. Read more
CAE Wins $270M Contract for Australian Air Force Training
CAE has secured a $270 million CAD contract with the Commonwealth of Australia to provide the Future Air Mission Training System for the Royal Australian Air Force. This 10-year project will be based at RAAF Base East Sale in Victoria. Read more
MDA Space Partners with Canada and Telesat for Military Satellite Communications
MDA Space Ltd. has formed a strategic partnership with the Government of Canada and Telesat Corporation to enhance military satellite communications capabilities. This collaboration is part of the Enhanced Satellite Communication Project – Polar, aimed at improving the Royal Canadian Air Force's operations in the Arctic. Read more
Elbit Systems Wins $210M Contract for AI Tank Upgrades
Elbit Systems has secured a $210 million contract from the Israel Ministry of Defense to upgrade Merkava tanks with AI technology for better observation and target tracking. Read more
Air Force Seeks AI for Faster Wargaming Simulations
The Air Force is looking to implement advanced AI tools to accelerate wargaming simulations, targeting speeds up to 10,000 times faster than real-time to improve decision-making and military integration. Read more
Aretum Acquires Veterans Engineering
Aretum, a provider of technology and professional services to federal agencies, has acquired Veterans Engineering, a company serving the U.S. Department of Veterans Affairs and other federal clients. This acquisition aims to strengthen Aretum's offerings in cloud delivery, cybersecurity, and digital transformation. Read more
Corsha's mIDP Secures U.S. Air Force Operations
The U.S. Air Force Sustainment Center has implemented Corsha's Machine Identity Provider platform to enhance secure communications and data sharing at the Warner Robins Air Logistics Complex. Read more
Titomic Secures $1.7 Million Defense Contract
Titomic Limited has announced a $1.7 million contract with a leading defense prime contractor to enhance advanced manufacturing capabilities for next-generation defense articles. Read more
Iridium Wins $85.8M Contract with U.S. Space Force
Iridium Communications Inc. has secured a 5-year contract valued at $85.8 million from the U.S. Space Force to enhance military communication infrastructure with AI capabilities. Read more
Cohere Partners with Thales for Canadian Navy AI
Cohere has partnered with Thales to implement AI technology for the Canadian Armed Forces' naval ships, aiming to improve efficiency and readiness. Read more
V2X, Inc. Wins $980 Million Contract for AI Test Systems
V2X, Inc. has secured a $980 million contract from the U.S. Air Force Life Cycle Management Center to enhance AI-driven warfighter test systems. The contract involves lifecycle support for automated test systems across various aircraft platforms over a potential ten-year period. Read more

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