German AI defence firm Helsing secures $1.8 billion in funding round

German drone and software maker Helsing has raised $1.8 billion in one of the largest funding rounds ever completed by a European start-up, boosting the company's valuation to $18 billion, the defence technology firm said on Monday.

The company, which was founded in 2021 and employs more than 1,000 people, said the funding round included investments from the Canadian pension fund CCP Investments as well as US financial giants JPMorgan Chase and Goldman Sachs Alternatives. 

Despite the new investment, Munich-based Helsing said the company remains under European ownership.

The company said it no longer considers itself a start-up but part of a new generation of defence companies it describes as "neo primes" - software-driven firms aiming to compete with established defence contractors.

While best known for its drones, Helsing's core business is artificial intelligence software that controls unmanned systems. The company supplies kamikaze drones to the Ukrainian armed forces and, since last year, has also produced underwater reconnaissance drones. 

Following its acquisition of German aircraft manufacturer Grob Aircraft last year, Helsing is also developing an unmanned combat aircraft.

The company said the fresh capital will primarily be invested in developing new AI platforms.

The funding comes as the stock market rally in traditional European defence companies has faded this year. 

Shares in Germany's Rheinmetall have roughly halved since January, although they remain several times higher than they were five years ago.