Germany is rapidly reinventing its defence sector, channelling billions into Artificial Intelligence (AI), drone tech, and military innovation with start-ups like Helsing leading a once-unthinkable arms race in Europe.
Gundbert Scherf, co-founder of Helsing, says Europe is undergoing a defence revolution that mirrors the scale of the Manhattan Project.
His Munich-based AI and military drone start-up has soared in valuation to $12 billion, signalling Europe’s dramatic pivot.
“Europe this year, for the first time in decades, is spending more on defence technology acquisition than the U.S.,” Scherf said.
Germany, long shaped by postwar pacifism, is now unleashing a surge in defence spending — planning to nearly triple its budget to €162 billion ( $185.4 billion) by 2029.
Since U.S. President Donald Trump's return to the political stage and his renewed questioning of America's commitment to NATO, Germany has committed to meet the alliance's new target of 3.5% of GDP on defence spending by 2029 - faster than most European allies.
In line with this increased defence commitment, Chancellor Friedrich Merz’s administration is prioritizing AI, autonomous systems, and battlefield innovation. This transformation is reshaping Berlin’s traditionally cautious military procurement model, with a new draft law easing funding for startups and reserving bids for European Union firms.
Defense Minister Boris Pistorius made it clear, “Money is no longer an excuse, it’s there now.” The message has sparked a gold rush in military innovation.
From swarm-controlled cyborg cockroaches to unmanned submarines and battlefield robots, Germany’s tech scene is going military fast.
Germany is now the second-biggest military supporter of Ukraine and the de facto leader of Europe’s defence future.
“We want to help give Europe its spine back,” said Scherf, and with the Mittelstand powering production and top-tier talent flooding in, the German defence awakening is no longer theoretical, it's operational.
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Start your day informed with the AnewZ Morning Brief. Here are the top stories for 20 June, covering the latest developments you need to know.
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