Defence Tech Funding Hits Record $4.1 Billion as AI and Cybersecurity Race Intensifies
Updated
Updated · OilPrice.com · Jul 28
Defence Tech Funding Hits Record $4.1 Billion as AI and Cybersecurity Race Intensifies
2 articles · Updated · OilPrice.com · Jul 28
Summary
$4.1 billion in venture funding rounds involving defence contractors has been committed so far in 2026, a record as major arms groups pour more money into start-ups.
42 defence M&A deals closed globally in the first half, up 56% year on year, with buyers chasing AI, cybersecurity, autonomous systems and space-based sensing.
Lockheed Martin, BAE Systems and Airbus have recently expanded that push through new funds and commitments, while Quantum Systems raised $1.2 billion and Kraken Technology secured $175 million.
Higher defence budgets are reinforcing the trend: Britain last week awarded £708 million to BAE and Team Tempest for its Future Combat Air System and is backing efforts to create 20 defence-tech spinouts a year.
Investors are increasingly looking beyond traditional hardware toward software and dual-use technologies, a shift lawyers and fund managers say should keep dealmaking strong beyond 2026.