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German defense startups Helsing and Arx form strategic AI partnership

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Germany’s two leading defense industry startups, Helsing and Arx Robotics, have formed a “strategic partnership” to further develop artificial intelligence (AI)-based warfare, aiming to be “as independent as possible” from the US.

Helsing and Arx Robotics state that the planned development of an “AI-based reconnaissance and impact network,” which will enable armed forces to act “faster, more precisely, more efficiently, and from greater distances in combat situations,” is intentionally “European-focused.”

Helsing is valued at €12 billion, making it Germany’s most expensive startup, while Arx Robotics is another promising company on the startup scene.

Unlike established defense companies like Rheinmetall, which often have transatlantic ties, these companies aim to build a production network that is independent of the US, belonging to Europe, and sometimes entirely to Germany.

This is being carried out in close cooperation with the defense industry in Ukraine and the Ukrainian armed forces, which use newly developed weapons in combat. The German startups are producing battle-tested equipment that has been successfully proven in practice.

From McKinsey to founding Helsing

Helsing is particularly known for its unmanned aerial vehicles. The company produces kamikaze drones for Ukraine and is also being considered as a supplier for a “drone wall” on NATO’s eastern flank.

The company’s co-founder, Gundbert Scherf, was sent to the German Ministry of Defence by his then-employer, McKinsey, and served as the ministry’s Head of Strategic Control for Armaments from 2014 to 2016.

Helsing’s HX-2 type drones are autonomously guided and can reach a target 100 kilometers away without any external control, making them more resilient to jamming maneuvers.

Helsing also develops AI for tanks, fighter jets, and submarines and will supply electronic warfare equipment in partnership with the Swedish company Saab for the Eurofighter.

The company is currently expanding its operations to the United Kingdom, where it produces autonomous underwater gliders for maritime surveillance, among other things.

In this field, Helsing provides expertise to Resilience Factories, which are “highly efficient production facilities that offer nation-states the possibility of local and sovereign production.”

“For Europe, in Europe”

Arx Robotics, also founded in 2021, shares the goal with Helsing of making its production as independent as possible from non-European components.

The company states that it is careful to attract “only European investors” and also strives to ensure its “supply chain is … European.”

Arx Robotics produces mini-tanks (“Gereon”) that weigh less than 400 kilograms. These tanks are intended for use in the “kill zone” on the front line between two armed forces.

According to reports, it has become nearly impossible for soldiers to remain in this area due to increasingly intense drone attacks.

The startup supplies several European armed forces and is now also active in the United Kingdom.

Despite all this, Arx Robotics’ main focus is software development. The company’s most well-known product is the Mithra operating system, which allows all types of weapon systems to be networked with sensors and AI models, thus enabling their autonomous control.

“We want to strengthen Europe’s industrial-military backbone and thus its defense capability,” states company co-founder Mac Wietfeld. “We are creating capabilities in Europe, for Europe.”

Europe’s land defense to be digitized

Helsing and Arx Robotics announced last week that they have formed a “strategic partnership.” With this partnership, they aim to “develop an AI-based reconnaissance and impact network for European defense.”

Specifically, they state that the “land domain, which has been quite fragmented and analog until now … will be digitized, networked, and equipped with artificial intelligence.”

Thus, in combat situations, “armed forces” will be able to act faster, more precisely, more efficiently, and from greater distances than they can today.

The partnership is explicitly “European-focused”: in addition to cooperation in Ukraine, it also includes joint projects in the United Kingdom and Germany. Ultimately, the goal is to provide a technological advantage to European and Ukrainian armed forces.

Ukraine as a testing ground for new technologies

Both Helsing and Arx Robotics not only supply the Ukrainian armed forces but also manufacture in Ukraine, and are therefore in close cooperation with troops fighting on the front lines.

Regarding the Gereon mini-tank, it is noted that the first model initially failed its practical test in Ukraine. Currently, weapon systems are being developed primarily for the war in Ukraine and are being adapted to comply with European supply and security guidelines.

This process involves “individuals with direct experience on the front lines” and employs people who “maintain the equipment at the front and are in contact with the armed forces.”

There is also cooperation with the Ukrainian defense industry; for example, the Gereon was developed in intensive collaboration with two Ukrainian defense companies.

The cooperation partners in Ukraine are regarded as efficient and fast. “If you only develop in Europe, it takes decades, and you might end up with a system that is not suitable for the battlefield,” says Arx co-founder Wietfeld.

Similar reports come from other startups that produce drones or other high-tech weapons for the Ukrainian armed forces.

The funding problem: Dependence on the US continues

Franz Enders, the author of a recent study on this topic, notes that Helsing and Arx Robotics can be cited as examples of new German defense startups focusing on “intra-European or German value chains” without using US-made components.

On the other hand, Enders says, “They have not yet succeeded in terms of financing; they are still dependent on capital from the US in this regard.” However, he adds that “in their strategy documents, these startups consistently emphasize their goal of financing and production in Europe.”

Furthermore, the fact that the companies test their products under combat conditions in Ukraine provides a real advantage over their competitors.

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Digital ministers from D9+ group urge EU to establish common age limit for social media

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Digital ministers from the D9+ group, which represents some of the European Union’s most digitally advanced member states, are pushing for a unified approach to address growing concerns over children’s safety on social media.

In a joint declaration, 14 EU tech ministers led by Luxembourg called on the European Commission to adopt “a truly European approach to protecting children online” by coordinating the enforcement of EU rules governing child safety.

They also urged the bloc to develop “a common approach to the digital age of majority across the EU,” referring to a potential union-wide age limit for accessing social media platforms.

Last month, European Commission President Ursula von der Leyen indicated that the bloc could consider introducing legislation to this effect as early as this summer.

However, the declaration also highlights a dissenting voice. Estonia, which has emerged as a prominent critic of EU social media restrictions, raised objections to horizontal age restrictions at the EU level and stated that it does not support provisions aimed at enforcing age limits on digital platforms.

Estonia also opposed what it described as “disproportionate” age verification measures that would require all users to verify their age and identity.

In contrast, the remaining members of the D9+ group supported “privacy-preserving EU-wide age verification” in the declaration.

This position appears to reference the EU’s own age-verification technology intended for national implementation, which the Commission asserts is secure from a privacy perspective.

The member states also demanded that online platforms adapt their interfaces based on the age and vulnerability of their users.

This refers to ensuring platforms are safe by design and age-appropriate by default.

Furthermore, the ministers requested that the Digital Fairness Act (DFA)—a set of rules aimed at strengthening online consumer protection by tackling dark patterns and addictive designs, which the Commission plans to propose by the end of the year—be a “targeted” instrument within the context of the bloc’s broader regulatory simplification efforts.

The declaration also addresses other digital policy areas, with a particular emphasis on the EU’s technology sovereignty following the Commission’s adoption of a major microchip and cloud proposal last week.

The 14 digital ministers demanded that technology sovereignty be pursued “openly,” calling for measures to ensure that digital sovereignty does not become “solely an EU-specific vision.”

This phrasing implies that the D9+ countries would reject EU digital infrastructure support measures that could be accused of being protectionist by excluding foreign providers.

The Commission’s draft Cloud and AI Development Act allows foreign cloud providers the flexibility to obtain certification as EU partners at nearly the highest sovereignty levels.

The D9+ group includes the following countries: Austria, Belgium, Denmark, Estonia, Finland, Ireland, Luxembourg, the Netherlands, Poland, and Sweden.

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Germany and France scrap joint fighter jet project amid industrial deadlock

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Germany and France have abandoned their plans to jointly develop a next-generation fighter jet, following deep-seated industrial disputes that have derailed one of Europe’s most ambitious defense initiatives.

The collapse of the program represents a significant setback for French President Emmanuel Macron’s long-standing vision of strengthening European defense integration and strategic autonomy.

A German government official, speaking to POLITICO on condition of anonymity due to the sensitivity of the matter, stated: “President [Emmanuel] Macron and Federal Chancellor [Friedrich Merz] have reached a joint conclusion that the companies involved are unable to come together to produce a joint fighter aircraft. They accept this reality.” The official added: “For this reason, Chancellor Merz has advised President Macron not to pursue further work on the development of a joint combat aircraft.”

The project, known as the Future Combat Air System (FCAS), was launched in 2017 but had repeatedly stalled due to fierce disagreements between France’s Dassault Aviation and Germany’s Airbus Defence and Space over which entity would take the lead. Spain is also a partner in the FCAS program, which was intended to replace the German Eurofighter and the French Rafale fleets by approximately 2040.

Beyond the core fighter jet, the program encompasses a “system of systems,” including drones and a “combat cloud”—a digital backbone designed to integrate sensors, satellites, unmanned platforms, and manned aircraft into a single operational network.

Late Monday, the Elysee Palace issued a statement confirming that Airbus Defence and Space and Dassault Aviation had failed to reach an agreement. The French presidency implied that the decision to terminate the project was a unilateral German move, telling reporters: “German authorities concluded that it was no longer possible to exert further pressure on the companies in question. France maintains the view that Franco-German cooperation in defense and security remains vital for both our countries and our European partners.”

Despite the failure of the fighter jet component, the German official did not rule out continued cooperation between Paris and Berlin on drones and the combat cloud system. “The core of FCAS will continue as a European ‘system of systems.’ This is, in a sense, the nervous system that connects aircraft, drones, and other components into an integrated whole,” the official said.

The official further noted that the French and German defense ministries would be tasked with developing a work plan for industrial defense cooperation “focused on several realistic and relevant projects.”

The FCAS is not the only multilateral defense program facing significant hurdles. Joint Franco-German plans to develop maritime patrol aircraft, a next-generation tank (Main Ground Combat System), and new artillery systems have all faltered in recent years. Simultaneously, the Global Combat Air Programme (GCAP)—a rival fighter jet project led by the United Kingdom, Italy, and Japan—has also experienced internal friction.

France has effectively withdrawn from the multi-billion-euro, four-nation Eurodrone program. The future of that initiative remains uncertain as the remaining partners—Germany, Italy, and Spain—evaluate how to proceed.

The termination of the FCAS fighter jet component was not a sudden rupture but the culmination of a protracted and attritional struggle between Europe’s two most influential defense firms, Airbus and Dassault Aviation. As previously reported by POLITICO, German and French officials had been privately acknowledging for months that the fighter jet element of the project was effectively “dead.”

The deadlock intensified last summer when Dassault, the manufacturer of the Rafale, pushed to secure the undisputed lead in the construction of the FCAS fighter. Under that proposal, Airbus would have been relegated to the role of a subcontractor with limited oversight of the design, while Dassault would have retained the power to select suppliers, determine workshare, and act as the sole point of contact for customers.

Airbus rejected this approach as a fundamental violation of the original partnership agreement. The company argued it would transform a European cooperative program into a French-led project subsidized by German and Spanish funding and industrial expertise. By September, reports emerged that Berlin had begun exploring alternative options, including potential cooperation with Sweden or joining the rival GCAP program.

Beyond industrial control, Paris and Berlin remained divided over the technical specifications of the aircraft. France required a lighter jet capable of carrier-based operations, while Germany sought a heavier airframe optimized for air superiority missions. Berlin eventually proposed building two separate versions of the aircraft, a solution Paris rejected.

In March, Merz and Macron agreed to give the project a final opportunity to succeed, but subsequent negotiations failed to bridge the deep divisions. On Monday, the German Chancellery officially notified Airbus of the decision to cancel the project. According to La Tribune, Merz is expected to formally announce the decision on Wednesday during the opening of the ILA Berlin Air Show.

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UK underwater deterrent facing scrutiny as all active Astute-class submarines remain in port

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All five of the Royal Navy’s active Astute-class nuclear-powered attack submarines are reportedly held in port for repairs or maintenance, leaving the UK with no operational vessels of this class ready for deployment.

According to a report by The Telegraph, which cited naval sources, although a sixth submarine of the same class has officially joined the fleet, it is not yet ready for deployment.

The current situation means that the UK temporarily lacks any nuclear-powered attack submarines cleared for active operations. Ryan Ramsey, a former nuclear submarine commander, described the development as a serious warning signal. “We look vulnerable,” Ramsey said. “The Russians know we can’t get our submarines to sea. When you cannot provide a deterrent at sea, you lose credibility in the eyes of the Russians.”

Lord Alan West, the former First Sea Lord and former security minister, also described the state of the submarine fleet as unacceptable and deeply concerning.

The UK Ministry of Defence stated in response to the reports that it does not normally comment on the operational status of the submarine fleet. Emphasizing that British waters remain protected at all times through a range of measures, the ministry added that strengthening underwater capability continues to be a top priority.

Astute-class nuclear submarines are tasked with protecting the UK’s Vanguard-class strategic ballistic missile submarines, which carry the country’s nuclear deterrent, as well as the aircraft carriers HMS Queen Elizabeth and HMS Prince of Wales during their deployments.

Separately, the UK’s Vice Chief of the Defence Staff, General Gwyn Jenkins, admitted in an interview with the Swedish newspaper Svenska Dagbladet in April that the Royal Navy was not sufficiently prepared for a potential war.

While noting that the navy possesses the resources to conduct combat operations and that personnel stand ready to carry out orders, Jenkins added: “But are we as ready as we should be? I think not.” He indicated that efforts to improve readiness levels remain ongoing.

Previously, The Sun newspaper reported that only two of the UK’s six Type 45 destroyers were operational. One of these active vessels, HMS Dragon, was deployed to the Mediterranean to protect British military bases in Cyprus.

The Telegraph also reported that due to a shortage of available ships, the government in London was forced to utilize a German vessel.

The state of the Royal Navy has been described in the British parliament as a “national embarrassment,” while US President Donald Trump has criticized the fleet, referring to it as a “toy navy,” according to reports by The Guardian.

Meanwhile, Russian President Vladimir Putin has repeatedly stated that Russia has no intention of fighting a war with Europe, dismissing such claims as nonsense. Putin has maintained that Western governments are escalating the situation to portray Russia as an adversary.

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