News

Germany dives into tech warefare with spy cockroaches, AI robots

Berlin is at the forefront of a new age of military advancement in Europe, with defence startups like Helsing leading the way as the continent strives to update its security systems in response to the conflict in Ukraine.

Established merely four years ago, Munich-based Helsing has emerged as Europe’s most valuable defence startup, recently seeing its valuation double to $12 billion. Co-founder Gundbert Scherf, a former McKinsey partner, states that Russia’s invasion of Ukraine has prompted European governments—particularly Germany—to undergo a historic transformation.

“For the first time in decades, Europe is investing more in defence technology procurement than the U.S.,” Scherf remarked.

Germany, historically cautious about military growth due to its past, is experiencing a significant reevaluation. Chancellor Friedrich Merz’s government intends to nearly triple the defence budget to €162 billion by 2029, with the goal of achieving NATO’s 3.5% GDP target. The administration is accelerating procurement laws to enable nimble startups to connect directly with military leaders, reducing bureaucratic obstacles and providing upfront payments to assist emerging companies in scaling.

A new landscape of defence startups is thriving. From AI-driven battlefield robots and unmanned mini-submarines to cyborg “spy cockroaches,” German innovators are transforming science fiction into strategic resources. “We want to help restore Europe’s strength,” Scherf commented.

Germany now boasts three unicorn defence startups: Helsing, drone manufacturer Quantum Systems, and Portugal’s Tekever. Investors are increasingly interested—venture capital investment in European defence technology jumped to $1 billion in 2024, with German companies receiving the majority of funding.

As the country's automotive industry faces a slowdown, engineering talent is shifting towards defence. “Startups provide the intellect, and the German Mittelstand provides the strength,” stated Stefan Thumann, CEO of drone munitions producer Donaustahl.

Berlin's stance is unmistakable: defence innovation transcends mere security; it encompasses economic resilience, sovereignty, and leadership.

Leave A Comment