Silicon Valley-backed Covenant unveils low-cost, mass-producible cruise missile

Key facts

• Covenant, a defense startup backed by Silicon Valley investors, has unveiled its Anthem cruise missile.
• The Anthem missile is designed for mass production at a relatively low cost, carrying a payload of over 200 kg.
• The company aims to provide a more affordable alternative to missiles from major defense contractors.
• Covenant has raised over $250 million and has booked approximately $150 million in orders.
• Production facilities in the U.S., Germany, and Israel are planned to produce thousands of missiles annually.

Defense startup Covenant has unveiled its Anthem cruise missile, a heavy-payload, long-range weapon designed for rapid mass production at a lower cost than comparable offerings from major defense contractors. The company, founded in 2024 and backed by over $250 million from prominent Silicon Valley investors, aims to address the depleted missile inventories of the U.S. and its allies following recent conflicts.

Anthem is a ground-launched cruise missile with a payload exceeding 200 kg. Covenant's co-founder and CEO, Michael Kaufman, stated that the company's goal was to change the paradigm of small-quantity, high-priced weapons. The missile utilizes a solid rocket motor for takeoff and a heavy-fuel jet engine for cruise flight, and has undergone more than 200 test flights over the past year.

Covenant President Abby Denburg indicated that the missile was developed with the Pacific theater in mind, specifically for potential conflicts involving China. Military planners envision using such ground-launched weapons from allied islands to strike targets within China, potentially reducing reliance on manned aircraft or naval strike groups. The company is targeting a mid-six-figure price per missile once at full-rate production and has already secured approximately $150 million in orders, with revenue generation expected to begin in 2027.

An international customer is slated to begin receiving German-built Anthems by the end of the current year, while U.S. Army deliveries are anticipated in 2027. Covenant has taken steps to mitigate supply chain risks by securing multiple providers for solid rocket motors and long-term agreements for jet engines. The company is establishing production facilities in Dallas, Texas, and Saxony, Germany, each with a capacity of 5,000 missiles per year, and a smaller site in Israel with a capacity of 2,000 units annually.