Germany rearms with AI, drones, and spy cockroaches
Photo: German Chancellor Friedrich Merz (Getty Images)
Amid threats from Russia and uncertainty about US support, Germany is dramatically increasing defense spending and relying on startups. This could change the landscape of military technology in Europe, Reuters reports.
Germany, Europe's second largest economy, is radically changing its approach to security.
The country, which has avoided militarization for decades, is now investing billions in the defense industry, including startups.
After Russia invaded Ukraine, the government accelerated rearmament and focused on new technologies: artificial intelligence, drones, cyborgs, and autonomous combat systems.
For the first time in a decade, Europe is outpacing the United States in terms of military procurement spending.
Germany wants to seize the moment - not only as a donor to Ukraine, but also as a leader in rethinking warfare. The country promises to almost triple its defense budget by 2029, to $175 billion.
Part of this money will be spent on breakthrough technologies.
What industry saying
Helsing co-founder Gundbert Scherf said that he is the most expensive defense startup in Europe, comparing the current moment to the Manhattan Project.
His company is valued at $12 billion and develops combat AI and attack drones.
The German startup ARX Robotics is engaged in autonomous ground systems, and Swarm Biotactics creates spy cockroaches - living insects with controlled microchips.
What government doing
Chancellor Friedrich Merz's cabinet is to approve a law on Wednesday that will open the door for startups.
- advance payments for small companies
- simplification of bureaucracy in tenders
- priority for companies from EU countries.
Berlin directly engages startups in consultations with major defense players such as Rheinmetall and Hensoldt.
Analysts predict that defense startups in Europe will emerge from the valley of death - a period when there are innovations but no sales or government orders.
The German Mittelstand (small and medium-sized businesses) is already actively switching from the automotive industry to military production.
Europe's rearmament plan
European Commission President Ursula von der Leyen said that Europe urgently needs to be rearmed. Later, she presented a corresponding plan.
It envisages mobilization of 800 billion euros and includes loans of 150 billion euros for defense needs. The funds will be used for the production of air defense equipment and the modernization of defense infrastructure among EU member states.
Earlier, all 27 EU member states agreed on a plan to rearm Europe.
