US-German drone firm to deliver tens of thousands of AI drones to Ukraine

Auterion, a US-German software company specializing in drone technology, is set to deliver 33,000 AI-powered drone “strike kits” to Ukraine by the end of the year as part of a new contract with the US Department of Defense.

The deal, worth nearly $50 million, is part of Washington’s ongoing military assistance to Kyiv. It significantly expands Auterion’s role in Ukraine’s defence efforts, as its software is already being used in drones conducting combat missions against Russian forces, Caliber.Az reports per Financial Times. 

“We’ve shipped thousands and we’re now shipping tens of thousands,” said Lorenz Meier, chief executive of Auterion, in an interview with the Financial Times. “The scale is unprecedented.”

Meier noted that the new commitment represents a tenfold increase in delivery scale and comes as Ukraine faces intensified Russian aerial assaults. In recent weeks, Russia has launched increasingly large-scale drone strikes, using hundreds of Iranian-designed Shahed drones per attack. According to Ukrainian officials, these mass strikes have breached air defences more frequently and are now hitting targets at roughly three times the previous rate.

Auterion’s “strike kits,” known as Skynode, are compact AI-enabled systems that include a miniature computer, a camera, and a radio. The technology transforms manually controlled drones into “AI-powered weapons systems” that are resistant to jamming and capable of tracking moving targets from up to 1km away.

The systems are designed to support Ukraine’s growing need for more advanced and scalable defence tools as it works to counter Russia’s drone swarm tactics.

Auterion, which is headquartered in Virginia and has offices in Munich, has emphasized its role in fostering US-Ukrainian technological cooperation. Meier said the company had “pioneered” co-production efforts between the two countries.

“It’s basically acknowledging that the battle-hardening that has happened in Ukraine of drone products is relevant,” he said. “That it’s a way to support Ukraine, but it’s also technology that … Nato countries want to get their hands on.”

Meier clarified that the contract was not connected to a separate drone “mega-deal” being discussed between Ukrainian President Volodymyr Zelenskyy and US President Donald Trump, aimed at deepening industrial cooperation.

“They have a fantastic drone industry,” Meier added. “What we want to contribute are things that they do not have already and that are more software-defined warfare-centric.”

President Zelenskyy said on July 24 that Ukraine had begun domestic production of interceptor drones but highlighted the need for additional financial support to scale production.

“On the plus side, four companies are solid, and 10 will have the capacity. I say ‘will have’ because, so far, they have only manufactured individual units, and they lack the money for this,” he said. “The production costs vary — some are more expensive, some are cheaper, with slightly different capabilities accordingly.”

Zelenskyy put the current overall cost of the drone production effort at $6 billion.

Germany, which has become the second-largest military donor to Ukraine after the US, is also stepping up support. Defence Minister Boris Pistorius recently confirmed that Berlin is financing long-range drone production in Ukraine as part of its expanded defence spending commitments.

Since the start of Russia’s full-scale invasion in February 2022, Ukraine has emerged as a proving ground for advanced military technologies. Kyiv is now regarded as a global leader in drone innovation, with a robust domestic supply chain.

Meier said Auterion’s technology could usher in “the next evolution in warfare,” enabling coordinated swarms of autonomous drones that can communicate with each other.

“What we are providing is leapfrogging what’s on the battlefield right now, which is to go to AI-based targeting and swarming,” he said. However, he emphasized that humans would retain control over target selection.

By Sabina Mammadli