French aerospace group Dassault Aviation is leading a $200 million funding round in startup Harmattan AI, as the defence sector accelerates the use of artificial intelligence amid intensifying geopolitical competition.
The investment will support the integration of advanced AI capabilities into Dassault Aviation’s future air combat systems, with a particular focus on the control and coordination of unmanned aerial systems, including combat and surveillance drones, the companies said on Monday.
Paris-based Harmattan AI was founded last year to develop autonomous defence technologies, ranging from AI-enabled platforms to strike and reconnaissance drones. The company said in a LinkedIn post that the Series B funding round values it at $1.4 billion, placing it among a small group of European defence-focused AI unicorns.
French President Emmanuel Macron welcomed the deal, calling it “excellent news” for France’s strategic autonomy and for maintaining technological superiority in AI-enabled defence systems, as well as for the broader economy.
Drone warfare has evolved rapidly in recent years, particularly following their widespread use by both sides in the war in Ukraine. This has pushed European defence firms to accelerate development of AI-augmented systems as governments seek to strengthen military capabilities in response to security threats from Russia and reduce dependence on the United States.
Dassault Aviation is currently developing the F5 version of its Rafale fighter jet, expected to enter service around 2030, alongside an unmanned combat air system designed to operate in coordination with the Rafale F5. Artificial intelligence is expected to play a central role in these programs, helping pilots process vast amounts of data, prioritise threats and enable autonomous drones to fly alongside crewed aircraft.
The investment in Harmattan builds on Dassault’s broader push into sovereign defence AI. The company signed a cooperation agreement in June with France’s defence AI agency AMIAD to research air combat applications and announced a strategic partnership in November with Thales to develop home-grown AI solutions for air combat systems.
