The future of defense is software-defined autonomy: our investment in Auterion

The nature of how a country defends itself is changing. What we're witnessing in Ukraine today — where commercial drones retrofitted with AI are overwhelming traditional defenses — represents a fundamental shift from peacetime artisan hardware to mass production for defense, and software has become the decisive factor on the battlefield.

This transformation has created an unprecedented opportunity for defense technology companies around the world, which is why we're leading Auterion's $130 million Series B round to accelerate its mission to power advanced autonomous battlefield systems across land, air, and sea. 

From manual control to AI-coordinated drone swarms 

Founded by Dr. Lorenz Meier, a veteran of the drone industry and recognized by MIT Technology Review as one of the top 35 Innovators under 35, Auterion has evolved from its open-platform autopilot origins to become the operating system for autonomous mass operations. The AuterionOS platform doesn't just power individual drones — it unifies fleets from multiple manufacturers into a single, coordinated fabric, allowing one operator to control various autonomous vehicles simultaneously across air, land, and sea domains.

The company's battle-tested technology is currently deployed in Ukraine, where it powers autonomous drone operations in active combat. Under a recent Pentagon contract, Auterion is delivering tens of thousands of AI "strike kits" to Ukrainian forces, representing the largest deployment of autonomous technology in the West to date.

What excites us most about the company is how Auterion's AI-enabled software transforms commercial low-cost hardware into coordinated combat forces. Their Skynode X system adds AI-powered autonomy, secure communications, and edge computing capabilities to existing platforms, enabling vehicles to complete missions even when GPS and video links are jammed.

The European resilience opportunity

The war in Ukraine has forced a seismic shift in European defense thinking. NATO countries are dramatically increasing defense spending — with commitments predicted to grow up to €1.2 trillion by 2030. This represents a significant increase that will make defense Europe's largest growth sector.

But this isn't just about spending more; it's about spending differently. European governments are increasingly procuring from startups that can innovate on both technology and cost, in addition to partnering with traditional prime contractors. This shift mirrors the 2007-era transition from on-premises to cloud software, creating enormous opportunities for companies with open architectures and scalable solutions.

Auterion's open architecture approach has attracted partnerships with major defense primes and aerospace manufacturers across the US, Europe, and allied nations. Unlike proprietary systems that lock customers into single-vendor solutions, Auterion enables interoperability across multiple platforms — a critical advantage in an era where agility and adaptability determine battlefield success.

Democratizing advanced autonomy

Central to Auterion's mission is making sophisticated autonomous capabilities accessible and affordable to the US and its democratic allies. Their Skynode systems are priced comparably to consumer electronics while delivering defense-grade performance, enabling even smaller nations and organizations to deploy capable autonomous fleets.

We believe this democratization of advanced defense technology aligns perfectly with the European resilience opportunity. As geopolitical tensions rise and traditional alliances face pressure, European nations need sovereign capabilities that don't rely on single-source suppliers or proprietary lock-in.

The future is software-defined

The transformation we're seeing in defense mirrors broader technology trends: hardware becomes commoditized while software creates differentiation and value. Just as cloud computing revolutionized enterprise technology, AI-enabled software is revolutionizing defense.

Auterion is at the center of this transformation. The technology enables the kind of autonomous mass operations that will define future conflicts, where decisive advantage comes not from individual platforms but from coordinated swarms operating at unprecedented scale. With headquarters in Arlington, Virginia, significant operations in Zurich and Munich, and teams on the ground in Ukraine, Auterion maintains the global presence needed to serve democratic allies worldwide. 

From RocketLab and The Exploration Company to Bastille Networks, TurbineOne, DEFCON AI, and more, we at Bessemer have a deep history and investment in frontier aerospace and robotics companies. We make deep tech investments wherever great founders are building transformative solutions, and we're particularly excited to grow our European presence in defense technology.

The future of defense is software-defined, autonomous, and with disruptive economics. Auterion is building that future, and we're proud to support their mission to protect democratic nations through advanced autonomous capabilities.

If you want to learn more about our perspective on defense technology and deep tech investing, explore our US Defense Tech Roadmap, State of Deep Tech report, and The XB100 — our definitive list of the world's top 100 private deep technology companies.