Published by Global Banking and Finance Review
Posted on January 12, 2026
Published by Global Banking and Finance Review
Posted on January 12, 2026
PARIS, Jan 12 - French aerospace group Dassault Aviation is leading a $200 million funding round in startup Harmattan AI as the defence sector races to leverage artificial intelligence amid intensifying geopolitical competition.
The partnership will support the development of AI capabilities in Dassault Aviation's future air combat systems, particularly for the control of unmanned aerial systems, or drones, the companies said on Monday.
Paris-based Harmattan AI was created last year to produce autonomous defence systems, including AI-enabled platforms, strike drones and surveillance drones.
DEAL IS 'EXCELLENT NEWS' SAYS FRANCE'S MACRON
Harmattan said in a post on LinkedIn that the Series B funding round valued it at $1.4 billion.
"This is excellent news for our strategic autonomy, for the technological superiority of our military in the area of AI-enabled defence drones as well as for our economy," French President Emmanuel Macron said in a post on X.
Drone technology has evolved rapidly in recent years, particularly due to their extensive use by both sides in the war in Ukraine.
The shift towards the use of AI-augmented systems has become a crucial front in defence technology as companies rush to bolster Europe's armed forces in the face of the threat from Russia and the need for more autonomy from the United States.
Dassault is working on a new version of its Rafale fighter jet, the F5, expected in 2030, as well as a combat drone under the "unmanned combat air system" program, which is intended to fly with the Rafale F5.
Artificial intelligence is also increasingly central for the competitiveness of defence companies. AI tools are being developed to support pilots' handling of high volumes of information and to help prioritise threats, as well as to equip autonomous drones flying alongside fighter jets.
Dassault signed an agreement in June with France's agency for AI in defence, AMIAD, to research air combat use cases and in November announced a strategic partnership with French group Thales to develop sovereign AI for air combat.
(Writing by Florence Loeve; Editing by Joe Bavier)
Artificial intelligence (AI) refers to the simulation of human intelligence in machines programmed to think and learn. It is used in various applications, including defence technology and autonomous systems.
Unmanned aerial systems (UAS), commonly known as drones, are aircraft operated without a human pilot on board. They are used for various purposes, including surveillance, reconnaissance, and combat.
A funding round is a stage in which a company raises capital from investors to finance its operations or growth. This can include venture capital, private equity, or crowdfunding.
AI plays a crucial role in enhancing the capabilities of defence systems, allowing for improved decision-making, threat assessment, and operational efficiency in military applications.
Explore more articles in the Finance category

