The Bundeswehr will purchase loitering munitions from the drone startup of the Spotify founder and from a drone manufacturer funded by Peter Thiel.
According to an article from the Financial Times, Helsing – a defense artificial intelligence company producing attack drones and an unmanned combat jet, funded by Spotify founder Daniel Ek – will supply kamikaze drones to the German armed forces worth up to 1.46 billion euros.
Also profiting from the deal is Stark, a Berlin-based drone manufacturer funded by Peter Thiel (co-founder of Palantir), which could earn up to 2.86 billion euros. The news of the contracts was first reported by Der Spiegel. Both contracts for the kamikaze drones include an “innovation clause” requiring the companies to offer the latest technology to the Bundeswehr.
Based in Munich, Helsing is one of the largest defense startups in Europe and has been benefiting since last year from a wave of investments in the military industry, triggered by the highly tense geopolitical context.
According to the British financial daily, these two deals represent a major blow to the German defense giant Rheinmetall, which was competing for a contract and expected to secure a deal worth 300 million euros.
All the details.
THE BUNDESWEHR CONTRACT FOR HELSING
Helsing was selected to supply drones to the Bundeswehr, the German armed forces, in an initial deal worth 269 million euros, according to tender documents submitted to the German budget committee and reviewed by the Financial Times. The contract includes the option to purchase additional HX-2 drones from the company, for a total contract value of up to 1.46 billion euros in the future.
AND THE ONE FOR STARK
For Stark, based in Berlin and backed by U.S. entrepreneur Thiel, the deal has an initial value of 269 million euros, with a potential increase up to 2.86 billion euros. It is unclear why the Stark contract, for its Virtus drone, had a higher potential value, the FT notes.
WHAT THE GERMAN DEFENSE AI STARTUP DOES
Based in Munich, Helsing, founded in 2021, began developing software for drones and other military arsenals, including Eurofighter jets.
The company’s main product acquires huge amounts of data from military sensors, radars, and weapon systems, then uses artificial intelligence to create intuitive, real-time visualizations of what is happening on the battlefield, explained TechCrunch last year, adding that “Instead of soldiers making life-or-death decisions based on phone calls and hand-drawn maps, everyone views the same information, whether they are on the front line or in a command center miles away.”
Towards the end of 2024, Helsing announced it was expanding its scope with the production of combat drones and stated it was working on a fleet of unmanned mini-submarines to enhance naval surveillance.
ITS ROLE IN THE WAR IN UKRAINE (AND BEYOND)
The FT also recalls that Helsing sold thousands of attack drones, produced at its facility in southern Germany, to Ukraine. It has also secured contracts with France, the United Kingdom, Estonia, and Sweden.
However, a report from Bloomberg last month revealed that the company’s weapon systems in Ukraine were experiencing issues during frontline combat tests, but Helsing denied these claims.
DANIEL EK’S ROLE (FORMER CEO OF SPOTIFY)
Finally, Daniel Ek’s long-standing support for the Bavarian defense startup has been nothing short of controversial, notes Gizmodo.
Leading the latest investment round is Prima Materia, the investment company founded by Ek and Shakil Khan, one of Spotify’s early investors, in 2020, which doubled its investment in the company.
The FT also recalled that Prima Materia made the first significant investment in Helsing in 2021, months before Russia’s large-scale invasion of Ukraine. Other investors include Lightspeed Ventures, Accel, Plural, General Catalyst, and Saab.
Recently, the Swede Ek has become the catalyst for widespread calls for boycott, as artists like King Gizzard & the Lizard Wizard have withdrawn their music from the Spotify streaming platform (founded by Ek himself) in protest. Spotify, for its part, has repeatedly emphasized that it is a completely separate company from Prima Materia. Meanwhile, Ek stepped down as Spotify CEO, telling Reuters in October 2025 that he would dedicate his time to supporting European tech startups. However, he continues to hold a role at Spotify as executive chairman.
