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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.

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Jugantor 27 Jul 25

AI and Startups Are Radically Transforming Germany’s Defense Sector

Since the war in Ukraine, Europe’s defense landscape has undergone significant changes. Particularly, the German startup Helsing has emerged as a leader in AI and military drone technology. Last month, their valuation surged by 1.5 times, reaching $12 billion, making them the top defense startup in Europe. Helsing’s co-founder, Gundbert Scharf, believes this marks a revolutionary shift in Europe’s defense technology, comparable to the Manhattan Project.


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