The war in Ukraine has triggered major shifts in Europe’s defense industry, with Germany at the forefront. The German startup Helsing, specializing in AI and military drones, recently achieved a $12 billion valuation, becoming Europe’s top defense startup. Germany plans to triple its defense budget to €160 billion by 2029, focusing on modern technology and startups. The government is easing regulations to boost smaller innovators, while companies like Swarm Biotactics develop advanced battlefield tech, positioning Germany as a growing power in defense innovation.