European artificial intelligence defence specialist Helsing has raised $1.8 billion (£1.4 billion) in a funding round that values the company at $18 billion, according to reports confirmed by the firm on Friday. The investment, led by a consortium of global technology and defence investors, represents one of the largest private fundraising rounds in the AI sector this year.
Helsing, which develops AI-powered software for military aircraft, drones and command systems, said the capital would be used to accelerate product development and expand into new markets. The company has been a key player in European defence modernisation, particularly following the war in Ukraine, which has spurred governments to invest heavily in autonomous systems and battlefield AI.
The fundraising comes as defence budgets across NATO countries, including the UK, continue to rise. Britain has pledged to increase defence spending to 2.5% of GDP by 2030, and AI-driven defence technologies are seen as a priority area. Helsing already works with several European governments, though it has not disclosed specific UK contracts.
Analysts said the valuation reflects a broader shift in investor sentiment towards defence technology. “We are seeing a structural re-rating of defence AI companies as governments prioritise next-generation capabilities,” said a defence sector analyst at a London-based brokerage. “Helsing’s ability to attract this level of funding signals confidence in the long-term demand for AI in military applications.”
The FTSE 100 edged up 0.3% on Friday to 8,245 points, with defence stocks among the gainers. BAE Systems shares rose 1.1% following the Helsing news, while Babcock International added 0.8%. Investors are closely watching the defence sector for further M&A and partnership opportunities as AI integration accelerates.
For UK pension holders with exposure to global equity funds, the deal highlights the growing weight of AI and defence in diversified portfolios. While Helsing is not publicly listed, its valuation provides a benchmark for similar private companies that may eventually float, potentially offering future investment opportunities.