Sneaky insects and ai robots germany plans to reinvent the nature of warfare

Sneaky insects and ai robots germany plans to reinvent the nature of warfare

A group of German defence start-ups is developing cutting-edge technology, from tank-like AI robots and unmanned mini-submarines to battle-ready spy cockroaches, as the country is preparing for future conflicts; A new draft law aims to reduce hurdles for cash-strapped start-ups to join tenders.

For Gundbert Scherf — the co-founder of Germany’s Helsing, Europe’s most valuable defence start-up — Russia’s invasion of Ukraine changed everything.

Mr. Scherf had to fight hard to attract investment after starting his company — which produces military strike drones and battlefield AI — four years ago.

Now, that’s the least of his problems. The Munich-based company more than doubled its valuation to $12 billion at a fundraising last month.

“Europe this year, for the first time in decades, is spending more on defence technology acquisition than the U.S.,” said Mr. Scherf.

The former partner at McKinsey & Company says Europe may be on the cusp of a transformation in defence innovation akin to the Manhattan Project — the scientific push that saw the U.S. rapidly develop nuclear weapons during the Second World War. “Europe is now coming to terms with defence.”

Chancellor Friedrich Merz views AI and start-up technology as key to its defence plans and is slashing bureaucracy to connect startups directly to the upper echelons of its military, sources said.

Shaped by the trauma of Nazi militarism and strong postwar pacifist ethos, Germany long maintained a relatively small and cautious defence sector, sheltered by U.S. security guarantees. Germany’s business model, shaped by a deep aversion to risk, has also favoured incremental improvements over disruptive innovation.

No more. With U.S. military support now more uncertain, Germany — one of the biggest backers of Ukraine — plans to nearly triple its regular defence budget to around €162 billion euros ($175 billion) per year by 2029. Much of that money will go into reinventing the nature of warfare, the sources said.

Helsing is part of a wave of German defence start-ups developing cutting-edge technology, from tank-like AI robots and unmanned mini-submarines to battle-ready spy cockroaches.

“We want to help give Europe its spine back,” said Mr. Scherf.

Some of these smaller firms are now advising the government alongside established firms — so-called primes such as Rheinmetall and Hensoldt — that have less incentive to focus primarily on innovation, given their long backlogs for conventional systems, one of the sources said.

A new draft procurement law, approved by Mr. Merz’s cabinet on Wednesday, aims to reduce hurdles for cash-strapped start-ups to join tenders by enabling advance payment to these firms.

In the lead

Since Donald Trump’s return to the political stage and his renewed questioning of America’s commitment to NATO, Germany has committed to meet the alliance’s new target of 3.5% of GDP on defence spending by 2029 — faster than most European allies.

Officials in Berlin have emphasised the need to foster a European defence industry rather than rely on U.S. companies. But the hurdles towards scaling up industry champions in Germany — and Europe more broadly — are considerable. Unlike in the U.S., the market is fragmented in Europe. Each country has its own set of procurement standards to fulfil contracts.

The U.S., the world’s top military spender, already has an established stable of defence giants, like Lockheed Martin and RTX, and an advantage in key areas, including satellite technology, fighter jets and precise-guided munitions.

Washington also began boosting defence tech startups in 2015 — including Shield AI, drone maker Anduril and software company Palantir — by awarding them parts of military contracts.

European startups until recently languished with little government support.

But an analysis by Aviation Week in May showed Europe’s 19 top defence spenders — including Turkey and Ukraine — were projected to spend €180.1 billion this year on military procurement compared, to €175.6 billion for the U.S.

Hans Christoph Atzpodien, head of Germany’s security and defence sector association BDSV, said one challenge was that the military’s procurement system was geared toward established suppliers and not well suited to the fast pace that new technologies require.

Sven Weizenegger, who heads up the Cyber Innovation hub, the Bundeswehr’s innovation accelerator, said the war in Ukraine was also changing social attitudes, removing a stigma towards working in the defence sector.

“Germany has developed a whole new openness towards the issue of security since the invasion,” he said.

Mr. Weizenegger said he was receiving 20-30 Linkedin requests a day, compared to maybe 2-3 weekly back in 2020, with ideas for defence technology to develop.

Some of the ideas under development feel akin to science fiction — like Swarm Biotactics’ cyborg cockroaches that are equipped with specialised miniature backpacks that enable real-time data collection via cameras for example. Electrical stimuli should allow humans to control the insects’ movements remotely. The aim is for them to provide surveillance information in hostile environments — for example information about enemy positions.

“Our bio-robots — based on living insects — are equipped with neural stimulation, sensors, and secure communication modules,” said CEO Stefan Wilhelm. “They can be steered individually or operate autonomously in swarms.