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Pentagon pressure drives Smack's new funding round, CEO says

Created at 17 Aug · 6:44 PM1 source↑ Market-relevant
IN SHORT

Defense-tech startup Smack Technologies is raising $61 million in Series B funding to accelerate production of its AI decision-making tools for the military and develop wearable AI hardware. The funding follows a shift in Pentagon strategy after designating Anthropic a supply-chain risk, prompting military branches to seek diverse AI vendors.

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Key Numbers

$61 millionSeries B funding round
10 to 20prototype units of Alpha targeted
6 monthstimeframe for Alpha prototypes
19employees in April
51employees currently
85target employees by year-end
seven figuresvalue of two prototyping contracts combined

Who's Involved

Smack Technologies
Defense-technology startup building AI decision-making tools
Andy Markoff
Co-founder and CEO of Smack Technologies
Defense Department
U.S. military entity that declared Anthropic a supply-chain risk
Anthropic
AI company previously designated a supply-chain risk by the Pentagon
Marine Corps
U.S. military branch pressing Smack to speed production
Navy
U.S. military branch pressing Smack to speed production
Joint Fires Network (JFN)
Entity that awarded Smack a prototyping contract
Marine Corps Warfighting Lab
Entity that awarded Smack a prototyping contract
Costanoa Ventures
Participant in Smack's Series B funding round
First In
Participant in Smack's Series B funding round
Point72 Ventures
Participant in Smack's Series B funding round
Geodesic Capital
Participant in Smack's Series B funding round
Pentagon pressure drives Smack's new funding round, CEO says

↳ Why This Matters

The funding round highlights the growing demand for advanced AI solutions in defense, driven by concerns over future battlefield conditions and a strategic shift by the Pentagon to diversify its AI supply chain.

Key facts

  • Smack Technologies is raising $61 million in Series B funding.
  • The funding will accelerate production of its AI decision-making tools and develop wearable AI hardware.
  • The Pentagon's designation of Anthropic as a supply-chain risk has increased demand for diverse AI vendors.
  • Smack's Omega technology aids in battlefield decision-making and adapting battle plans.
  • The company won two prototyping contracts from the Joint Fires Network and Marine Corps Warfighting Lab.
  • Smack is developing Alpha, a forearm AI display for troops.

Smack Technologies, a startup developing artificial intelligence decision-making tools for military applications, is securing $61 million in Series B funding. The investment will accelerate the production of its flagship product, Omega, and fund the development of Alpha, a wearable AI display for soldiers.

The urgency for such technologies has intensified following the Defense Department's March declaration of Anthropic as a "supply-chain risk." This move prompted military branches to seek alternative AI vendors, elevating startups like Smack from lesser-known entities to sought-after partners.

According to Smack CEO Andy Markoff, the company engaged in discussions with the Marine Corps and Navy in the spring, both of which expressed a need for accelerated production. Markoff highlighted the Pentagon's concern about future conflicts occurring in decentralized, communications-degraded environments where tactical decisions must be made rapidly on the battlefield.

Smack's Omega technology is designed to streamline the fires-planning process, enabling quicker decisions on targeting and real-time adaptation when battle plans are disrupted. The company recently secured two undisclosed prototyping contracts from the Joint Fires Network and the Marine Corps Warfighting Lab. Investors in the Series B round include Costanoa Ventures, First In, Point72 Ventures, and Geodesic Capital.

The company has expanded significantly, growing from 19 employees in April to 51, with plans to reach approximately 85 employees by the end of the year. The new funding will also support the development of Alpha, a forearm AI display intended to replace improvised whiteboards historically used by troops in the field.

Frequently asked questions

Smack Technologies' core product is Omega, an AI system designed to shorten the military's fires-planning process and adapt battle plans in real-time.

The Pentagon is seeking to diversify its AI vendors after designating Anthropic as a supply-chain risk, indicating a concern about reliance on a single provider for critical AI technologies.

Wearable AI hardware, like Smack's planned Alpha display, is intended to provide troops with real-time decision-making capabilities directly on the battlefield, especially in communications-degraded environments.

The Marine Corps and the Navy have expressed interest and pressed Smack to speed up production of its AI tools.

What Happens Next

01Smack aims to produce 10 to 20 prototype units of its Alpha AI display over the next six months.
02The company plans to grow its workforce to roughly 85 employees by year's end.

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How It Developed

Smack Technologies is raising $61 million in Series B funding.
The funding aims to speed production of its AI decision-making tools and develop wearable AI hardware.
The Defense Department declared Anthropic a supply-chain risk in March.
This led military branches to diversify AI vendors, increasing interest in startups like Smack.
Smack held conversations with the Marine Corps and Navy in the spring.
Both branches urged the company to accelerate production.
Smack's core technology, Omega, shortens the Marine Corps' fires-planning process.
In July, Smack won two undisclosed prototyping contracts from JFN and the Marine Corps Warfighting Lab.

Sources

T1
Pentagon pressure to move AI faster drives Smack's new funding round, CEO saysReuters

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