Helsing, a startup focused on AI software for defence, has raised E450 million ($487 million) to expand its operations in European nations near Russia. Founded in 2021, the company develops software to enhance the capabilities of weapons and improve battlefield decisions. Active in Ukraine since 2022, Helsing is also engaging with countries on NATO's eastern flank, where Russian aggression is a growing concern.

The latest funding round, led by General Catalyst, values Helsing at E4.95 billion ($5.4 billion). As defence budgets in Europe increase, Baltic officials have raised alarms over Russia's aggressive tactics like GPS jamming. Despite the influx of cash, some high-profile defence companies have struggled to gain traction in EU, where governments often prefer local tech providers.

Why does this matter?

Helsing, headquartered in Munich, London, and Paris, has secured deals with Airbus and defence ministries in Germany and Ukraine. The company also announced a new entity in Estonia and plans to spend E70 million on Baltic defence projects over the next three years. Estonian Prime Minister Kaja Kallas welcomed Helsing's move, emphasising the need for action over words in defence strategies.

The new funds will be used to develop products and train AI datasets. Helsing's co-founder and co-CEO, Torsten Reil, stated that the company ensures humans make final decisions on lethal operations, maintaining this as a core belief despite some adversaries favouring autonomous systems.