(Jan 12): Dassault Aviation SA, developer of the Rafale fighter jet, led a US$200 million investment into the relatively unknown drone company Harmattan AI, making it one of Europe’s newest unicorn startups.
The funding round, which Bloomberg first reported last year, gives Harmattan AI a valuation of US$1.4 billion, according to a spokesperson. The companies did not share Dassault’s stake but said FirstMark Capital, a venture firm in New York and early investor, also participated in the financing.
With the deal, the French startup, formed in 2024, will work to embed its autonomous systems into the arms manufacturer’s aircraft, the companies said on Monday (Jan 12).
Europe’s historic rearmament effort is pushing large defence contractors to improve their technology capabilities, as the ongoing conflict in Ukraine has underscored the importance of drones and electronic warfare. Several startups have raised significant investor cash with the promise of applying artificial intelligence to warfare. Germany has several of these newcomers with lofty valuations, including Helsing and Quantum Systems.
Paris-based Harmattan AI held talks for its Series B round last year, telling investors it could be a “next-generation defence prime”. In an investor pitch, viewed by Bloomberg, the startup said it would produce 10,000 drones a month in 2026.
In a statement on Monday, Harmattan AI said it had been awarded “multiple” programmes of record with the French and UK defence ministries but did not specify the contracts.
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Dassault Aviation is one of the defence contractors developing Europe’s FCAS fighter jet, a multi-nation fighter jet programme that has been plagued by difficulties. The French company has previously said it could build the aircraft on its own.
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