Within a matter of months, Munich-based technology startup, Helsing, became Europe’s most valuable company, worth $5.35 billion (€5 billion), all attributed to its Helsing drone.
The three German founders, Gundbert Scherf, Niklas Köhler, and Torsten Reil launched the company in 2021 to upgrade military technology, including AI-powered software for combat vehicles.
Security tensions are driving European defense expenditure to new heights, and Helsing defense was poised for growth due to its strong ties with Germany’s military and securing major contracts after Russia invaded Ukraine in 2022.
Criticism Affecting Helsing Drone Manufacturing
Despite its shining start, Helsing AI drone technology has been criticized, particularly in Ukraine, where its drones, including the HF-1, have been utilized.
Troops and military strategists have complained about the efficiency of the Helsing attack drones, with some labeling them glitchy and not as good as cheaper drones, as well as other complaints raised over the drones’ cost. The HF-1, for example, equipped with Helsing’s drone AI software, has been sold for up to €18,000, significantly more than similar models.
Helsing defends its pricing, claiming that it is suitable with the German and Ukrainian defense ministries’ standards, also arguing that its AI defense software can execute successful missions independently of operators.
These explanations, however, have not completely satisfied concerns, especially as Ukraine seeks inexpensive solutions to its war missions.
Helsing drone has also been accused of being too secretive with its business and innovation, as current and former staff, investors, and military strategists claiming the company’s secrecy is hindering its success.
Investor Confidence
Despite criticisms, investors’ demand for Helsing drone manufacturing is high. The company has raised a lot of money, including a $1.07 USD (€450 million) round in 2023, and is increasingly pursued after as defense budgets in Europe are increasing rapidly. Investors such as Khaled Helioui, a partner at London-based venture firm Plural, believe that the fast growth and capacity to land large contracts demonstrate that Helsing can succeed even if it does have its issues.
Helsing’s next big initiative is its HX-2 strike drones, which Helsing claims will be mass-produced and affordable compared to the outdated missile systems. With the goal to produce 1,000 Helsing drone per month and send 6,000 to Ukraine, Helsing is banking on this new model to cement the company’s place in the market.
Final Thoughts
In the backstory of EU’s growing ambition to become a leader in AI and technology, Helsing’s move is a jump towards the integration of AI and autonomous systems in defense.
Helsing AI defense technology could undermine the US dominance in the sector by reducing Europe’s dependence on Western products and promoting the use of local, indigenous innovations. As Helsing drone encourages innovative AI defense technologies, it has the potential to upgrade Europe’s military landscape and defense systems, thereby making Europe a key player in global defense powers.
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