Rhode Island-based defense startup HavocAI has successfully raised $85 million to enhance the production of its unmanned surface vessels (USVs) and expand its collaborations with the US military and allied nations. This significant funding round comes on the heels of the Trump administration’s “Big Beautiful Bill,” which earmarks billions for artificial intelligence (AI) initiatives throughout the Pentagon.
Co-founded by veterans of the US Navy, Paul Lwin and Joe Turner, HavocAI managed to close this funding round in just three months, a strategic move to maintain a competitive edge in the rapidly evolving defense technology sector. Since its inception in early 2024, the startup has attracted nearly $100 million in total capital and has expanded its workforce to around 80 employees.
The latest round attracted numerous new investors, including B Capital, In-Q-Tel, and Lockheed Martin, among others. Existing supporters like Scout Ventures and Outlander Ventures also continued their backing.
HavocAI specializes in upgrading commercial vessels with a proprietary AI-driven control system, enabling users to navigate and coordinate missions with minimal human intervention, rather than designing new hulls from scratch. The company also provides an in-house line of USVs, which garnered attention during last summer’s US Navy “Silent Swarm” trials. Following these trials, the Navy procured a dozen platforms such as the 14-foot Rampage USV, valued at approximately $100,000 each. Lwin emphasized that the pricing of these vessels is intended to be comparable to munitions, positioning them as expendable assets in combat scenarios.
As part of its growth strategy, HavocAI is supporting contracts with key military branches, including the US Army and Navy, and has been testing larger autonomous vessels in Rhode Island. These include the 38-foot Seahound, the 42-foot Kaikoa, and the 100-foot Atlas. Louisiana-based Metal Shark has announced plans to integrate HavocAI’s software into its unmanned surface vessels, while Lockheed Martin is working alongside the startup to accelerate the development of medium USVs for naval defense.
Despite facing sanctions from China last year alongside several American defense tech firms for supplying weapons systems to Taiwan, HavocAI continues to make strides in the industry as the Department of Defense increasingly rolls out autonomous systems within its ranks. The ongoing expansion of partnerships and investment underscores the growing importance of AI-driven solutions in modern military operations.
