At a Glance
- French defense startup Harmattan AI raised $200 million Series B, reaching a $1.4 billion valuation
- Dassault Aviation, maker of the Rafale fighter jet, led the round and will co-develop AI for next-gen aircraft and drones
- The company will scale manufacturing of drone-interception, electronic-warfare, and ISR platforms
Why it matters: The deal signals Europe’s push to keep critical AI defense capabilities sovereign while competing with U.S. primes
French defense tech company Harmattan AI has joined the unicorn club less than two years after its 2024 founding. A $200 million Series B round led by Dassault Aviation pushed the firm’s valuation to $1.4 billion and secured a strategic partner for embedding artificial intelligence into future combat aircraft and drones.
From Startup to Billion-Dollar Supplier
Founded in 2024, Harmattan AI builds autonomy and mission-system software for defense aircraft. The company quickly caught the attention of the French and British ministries of defense, landing multi-million-dollar contracts within twelve months. In July it announced what it called a record: a multi-million-U.S.-dollar order from a NATO government for small AI-enabled drones.
Harmattan AI had previously raised $42 million, including a seed round led by Atlantic and a Series A led by FirstMark, with Motier Ventures and Sisyphus Ventures also participating.
Dassault Deal Redefines Strategy
The new capital changes more than the balance sheet. Dassault Aviation, best known for the Rafale fighter, becomes both investor and industrial partner. According to a Harmattan press release, the two companies will jointly develop embedded AI for next-generation Rafales and accompanying drones, ensuring the technology is sovereign and scalable.
The partnership also shifts Harmattan’s market posture. The firm once styled itself as a “European Anduril,” aiming to overtake legacy defense primes. With Dassault on board, the startup now welcomes collaboration with incumbents and has quietly dropped the “next-generation defense prime” label in favor of “defense technology company.”
Ukraine Drives Demand
Russia’s widespread use of drones over Ukraine has accelerated NATO demand for counter-drone and electronic-warfare tools. Harmattan AI recently partnered with Ukrainian drone manufacturer Skyeton and says the fresh funding will let it:
- Expand product lines into new operational domains
- Ramp manufacturing of platforms for drone interception
- Scale electronic-warfare and ISR (Intelligence, Surveillance, and Reconnaissance) systems
Political Praise and Global Ambition
French president Emmanuel Macron praised the deal on social media, calling it “excellent news for our strategic autonomy, for the technological superiority of our armed forces in the field of AI-activated defense drones, as well as for our economy.”
While the funding boosts French capabilities, Harmattan AI’s mission statement leaves room for wider sales. The company vows to “empower the armed forces of liberal democracies and their allies” and will exhibit at the World Defense Show in Riyadh next month while expanding its U.S. team.
Leadership Statements
CEO and co-founder Mouad M’Ghari framed the raise as a transition point. In a LinkedIn post he wrote the company is “entering a new phase of scale” and will use the funds to “ramp-up manufacturing.”
CTO and co-founder Martin de Gourcuff struck a more geopolitical tone: “As the international order goes off the rails, we are entering an era where, increasingly, power precedes law. A reversal of the civilized world we strive for. Harmattan AI exists to protect our values and flip that relationship back, as power without law is just mere violence.”
Key Takeaways
- Harmattan AI’s valuation jumped from undisclosed to $1.4 billion in under two years
- Dassault’s backing fuses traditional aerospace expertise with AI-native software
- The deal underlines Europe’s drive to keep critical defense AI within the continent while remaining open to allied exports
