Germany bets on AI robots, drones, and biotech to lead future wars
According to news agency Reuters, last month, Helsing's value more than doubled to $12 billion.The German government under Chancellor Friedrich Merz is now opening the doors of its military to collaborate directly with start-ups. The goal is to fast-track innovation and reduce dependence on traditional defence giants."We want to help give Europe its spine back," Scherf added.STARTUPS POWER GERMANY'S HIGH-TECH DEFENCE PUSHGermany is not just big firms like Rheinmetall and Hensoldt but also smaller companies working on futuristic ideas. These include ARX Robotics, which makes autonomous tank-like machines, and Swarm Biotactics, which is building insect-based spy tools."Our bio-robots -- based on living insects -- are equipped with neural stimulation, sensors, and secure communication modules," said Stefan Wilhelm, CEO of Swarm Biotactics. "They can be steered individually or operate autonomously in swarms."The German military's innovation hub is also seeing a sharp rise in interest. "Germany has developed a whole new openness towards the issue of security since the invasion," said Sven Weizenegger, who leads the Cyber Innovation Hub. He added that he now receives 20 to 30 LinkedIn messages a day with defence tech ideas, compared to just a few per week back in 2020.The transformation isn't just about gadgets. Germany plans to nearly triple its annual defence budget to $175 billion by 2029 and meet NATO's 3.5% GDP defense spending goal. A new draft law will even make it easier for startups to get advance payments and win government contracts.Marc Wietfeld, founder of ARX Robotics, described a turning point after meeting Defence Minister Boris Pistorius. "He told me: 'Money is no longer an excuse—it's there now'," Wietfeld said.GERMANY AIMS TO LEAD EUROPE'S DEFENSE FUTUREIn fact, Europe's 19 largest defence spenders are set to outspend the US in military procurement this year: $180 billion versus America's $175 billion. Overall US military spending remains higher, but the gap in technology investment is narrowing fast.advertisement"Society has recognised that we have to defend our democracies," said Christian Saller, an investor in defence startups like ARX and Quantum Systems.Venture capital funding in German defence tech has jumped from $373 million in 2022 to $1 billion in 2024. German companies have received $1.4 billion in the last five years—more than any other country in Europe."The startups just need the brains to do the engineering and prototyping," said Stefan Thumann, CEO of Donaustahl. "And the German Mittelstand will be their muscles."- EndsWith inputs from ReutersMust Watch
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