Why business is booming for military AI startups

Exactly two weeks after Russia invaded Ukraine in February, Alexander Karp, the CEO of data analytics company Palantir, made his pitch to European leaders. With war on their doorstep, Europeans ought to modernize their arsenals with Silicon Valley’s help, he argued in an open letter.

For Europe to “remain strong enough to defeat the threat of foreign occupation,” Karp wrote, countries need to embrace “the relationship between technology and the state, between disruptive companies that seek to dislodge the grip of entrenched contractors and the federal government ministries with funding.”

Militaries are responding to the call. NATO announced on June 30 that it is creating a $1 billion innovation fund that will invest in early-stage startups and venture capital funds developing “priority” technologies such as artificial intelligence, big-data processing, and automation.

Since the war started, the UK has launched a new AI strategy specifically for defense, and the Germans have earmarked just under half a billion for research and artificial intelligence within a $100 billion cash injection to the military.

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