The EU needs to rearm quickly and cheaply. And your best option right now is through AI

Both GPS and ARPANET, the germ of what would later be Internetwere born within the United States Department of Defense. From radar, which was developed during the 1930s and perfected during World War II, advances later emerged such as the air traffic control system or the microwave. There was a time when military technology was a source of inventions for the civilian sphere. With AI, technical advances begin to occur in the opposite direction: from the civil to the military. They are companies that we all know – Google, OpenAI or Anthropic – that are developing the most sophisticated models in the world and defense organizations are waiting. For the European Union, this trend coincides with an acute crisis in the field of defense. The war in Ukraine has undermined the foundations of political life in Brussels, while presenting Russia as a growing threat. Added to this is the Trump Administration’s willingness to stop security aid to European countries. A breeding ground that has driven the need to rearm. In March, the European Commission announced the ReArm Europe initiative o Readiness 2030. The objective is to significantly increase the EU’s defense capabilities. This is a plan that wants to mobilize nearly 800,000 million eurosincluding 150,000 million in loans for military investments. State governments are expected to push for the modernization of their armies, but the mobilization of private capital is also sought. The increase in security spending is also reflected in the Multiannual Financial Framework (2028-2034)presented in summer. This budget, which defines at a financial level the EU’s priorities for the coming years, provides for an allocation of 131,000 million euros to support investment in the areas of defense, security and space. Without knowing how the distribution is, the funds are five times higher than those of the previous period (2021-2027). (Pablo Bejarano) These efforts of the EU to recover the lost ground in defense could benefit from the technological race that is currently being experienced. Above all, advances in AI, called to reconvert armies and forms of deterrence that countries exhibit today. In one of the round tables at the Web Summit, held in Lisbon last November and which acts as a meeting point for startups from around the world, several experts addressed this topic. Under the title ‘From code to combat: Why AI defense tech is exploiting‘, participants discussed the rise of AI in defense. “What is changing the technological landscape is the speed of innovation,” commented Josh Araujo, CEO of the startup Forterra, in reference to the accelerated pace of technological evolution. “And in Europe, what happens with defense budgets is that it is no longer interesting to buy old things. You can take a system, man it with humans and put armor on it, so we are talking about refined and expensive systems that take decades to design. Or you can deploy autonomous systems low cost that put humans out of danger and allow more firepower and more deterrence capacity to be projected at a much lower cost.” The boost of startups and private capital Forterra is an American company dedicated to developing autonomous ground systems for the field of defense and industrial logistics. Araujo is used to dealing with both military and civilian actors and highlights the importance of deterrence: “The point is that for Europe and our allies, it costs aggressors much more to carry out an aggressive action. The key here is to deploy as much capacity as quickly as possible at the lowest possible cost.” To make this deployment at low cost, AI will be key. a report of the think tank RAND recommends estimates that advances in autonomy and robotics will allow this type of technology be used en masse. “AI represents a great opportunity. If we realize what we generate today on the battlefield, with swarms of drones, autonomous ground vehicles and different mission systems, we see that there are enormous amounts of data,” says Araujo. “Traditionally you had to have a lot of people staring at their computer screens to analyze and absorb the information. But AI offers us the possibility of taking this information, giving it meaning and putting it in context so that a human can make decisions based on that information,” he adds. Forterra’s CEO adds that this change has occurred over the last three or four years. (IDF Spokesperson’s Unit/Commons) One of the most direct use cases of AI has to do with improving the surveillance capacity of the terrain, through the analysis of mass images. But the technology has also been used in the search and identification of targets or to guide drones towards the target without the intervention of an operator. Likewise, in Ukraine has been rehearsed vehicle deployment terrestrial autonomouswhile the launch of swarms of drones that act on missions in a controlled manner is proposed. All are formulas for increasing war capabilities at low cost, compared to the means that have been used to date. There is still a lot to refine, yes. In an informal conversation, a director of a company in the defense sector in Spain admitted that generative AI is still in the exploration phase and that for now it does not have clear uses in the military field. This does not prevent a flood of technology startups from directing their efforts towards the defense sector. James Cross, co-head of private investment at the firm Franklin Templetonwas the other participant in the Web Summit round table and painted a context full of economic incentives: “I have been investing in defense since the late 90s, but things have changed a lot in the last ten years. Before, no venture capital firm would have invested in a defense-oriented company and today, apart from AI, defense is probably the hottest sector.” Cross seasoned this vision with two notes: governments now they have gotten involvedsomething that has not happened for a long time, and more and more money is going to startups instead of traditional arms contractors. In the first half … Read more

The US has reached a dead end. To rearm to China’s threat, he needs the help of a nation: China

What began Like a secret In the army he has jumped to the first flat of the nation: the pentagon has reacted afternoon and bad To the revolution of the drones. While Ukraine and Russia integrate at dizzying rhythm Cheap, disposable and effective platforms, and China You don’t know what to do With as many drones, Washington is entangled in procedures, inherited priorities and a culture of acquisitions that treats drones as “new airplanes” and not as low cost ammunition and mass production. In the background, a dead end: to anticipate the Chinese threat need … China. Revolution. The contemporary battlefield has been marked by a CStructural Ambio: Cheap, mass and disposable drones have become the decisive asymmetric weapon, capable of altering the balance of power between large and small powers. Ukraine, with one constant creativity And an incessant flow of adaptations, has shown that an army with limited resources can neutralize armored, strategic airplanes and russian logistics lines by swarms of short and medium reach drones. And delay. Meanwhile, the Pentagon, despite publicly recognizing the threat, maintains A dangerous delay. The statement of General James Mingus, who compared the current drones with the devastating impact of the improvised explosive artifacts in Iraq, Synthesizes the dilemma: This is the “FDE today”, a transformative weapon against which the United States has not yet reacted with the necessary urgency. Strategic blindness. They tell The analysts of the country that history is repeated. During the years of the insurgency in Iraq and Afghanistan, thousands of soldiers died while the Department of Defense delayed the adoption of the Mrap vehiclesarmored designed for Resist FDIuntil the pressure of Robert Gates He broke the internal resistances. Today, the same pattern It is observed with drones. The rigid structure of the pentagon, obsessed with large programs as the F-35strategic submarines or The Sentinel missilesmarginalizes the cheap and fast solutions that make a difference in the field. There is talk of initiatives such as The Replicator program or of record budgets for research in autonomous weapons, but the reality is that, in front of the millions of drones that China could produce and the monthly thousands that Russia already displays, the United States barely has prototypes and promises. Presentation of Lucas, the Made in USA copy of the Shaheds, or almost The awkward mirror: the Shahed. We have gone counting. The weapon that best reflects that gap is The Shahed-136renamed Geran by Russia. Born as an Iranian clone of Israeli designs, it has become the most influential mercupy ammunition of the 21st century. With an approximate cost of $ 50,000, A autonomy of up to 1,600 kilometers and the ability to carry loads of 20 to 40 kilos, combines simplicity with strategic efficacy. In Russian hands, it already occurs at an industrial scale And it has been perfected with more range variants, better tight sensors and loads. Faced with the millions of cruise missile, Shahed is the pure expression of the war economy: cheap, abundant and devastating. The fact that the United States does not have an equivalent produced by mass constitutes a Strategic negligence symptom. The double error. On the one hand, the Pentagon has ignored the need to adopt massively short -range dronesof the FPV type, which in Ukraine have become the Common soldier weaponcapable of extending the scope of an infantry squad from 800 meters to more than 12 kilometers. On the other, it has dismissed for years the importance of long -range ammunition low costentrusting in expensive and limited missile arsenals. This double error points to a mentality anchored in past warsunable to accept that innovation does not reside in the exquisite, but in the numerous. The US army still does not have formations dedicated to drones, or new military specialties focused on them. The doctrine barely begins to adapt and pilot programs advance at a ridiculous speed compared to the rhythm of Ukrainian innovation. Russian Shaheds Factory China and recover lost time. The proposal of the most realistic analysts It is clear: United States needs, without delay, standardize Two drone designs long -range kamikaze. The first, about 1,600 km, cheap and massive, would serve both in Europe and in the First Pacific Islands chain. The second, more than 3,000 km, would be crucial to, for example, hit from the second island chain to the interior of China, even after the establishment of Bubble A2/AD. Both, complemented with variations in useful loads and guidance systems, would guarantee tactical flexibility and a deterrent volume. Without this capacity, the United States would enter any greater conflict with a ridiculously insufficient arsenal against tens of thousands of enemy threats. The logic of wear. The value of these weapons does not only reside in their destructive capacity. His strength lies in the economic equation: they force the adversary to spend millions in interceptors for each device which costs just tens of thousands. The “effector depletion” thus becomes a strategic weapon: saturate enemy defenses until their missile arsenals and force them to cover a spectrum of threats impossible to handle. Even a drone that never reaches its objective fulfills its function to the Force the enemy to shoot. Ukraine lo has demonstrated by forcing Russia to disperse anti -aircraft defenses against improvised swarms; The same logic, multiplied by tens of thousands of units, could turn the balance against China or Russia. The Chinese problem. The underlying problem is industrial disability. And here comes one of the paradoxes of the situation: the United States depends almost completely on the nation of which he intends to defend himself. And is that It depends on China for everythingfrom batteries to basic motors and materials. Its acquisition structure, designed for the slow rhythms of the cold war, is not prepared to produce quickly and decentralized. While the adversary itera versions in weeks, the Pentagon takes years to approve contracts. The solution: analysts aim to diversify production between dozens of medium and small companies, under a framework of standardized designs owned by the … Read more

It is one thing to spend 5% of GDP to rearm and a very different one is to sell weapons to Europe. Spain that has it very clear

The “pacifist” Spain, which has faced the United States alone by questioning the “unit” of NATO compared to that 5% defense expense pursued by Washington, lives a paradox. Because While he refuses of the rearma, or at least the figures that are handled, has the opportunity to accompany a national company in the epicenter of that Dispension in artillery and military resources for the old continent. It We count A few days ago. The first track Morgan Stanley gave it: Indra had raised its target price by 118%. A crossroads. Of all this did an analysis The Financial Times. In the epicenter of a continent that accelerates Your rearmeSpain is presented as the more particular case Of all: The country historically more reluctant to military spending in NATO now tries Turn Indraa company of civil roots and computer tradition, in a kind of European defense champion. Partially supported by the State, which It has 28% of its capital, Indra is undertaking an ambitious (and risky) transformation with the aim of rivaling with consecrated names such as Bae Systems, the Almighty Rheinmetall or Thales. New DNA. Its new president, Angel Escribanoentrepreneur with industrial DNA forged in the manufacture of turrets for combat cars in the Middle East, has placed the reconquest of manufacturing capabilities as cornerstone of this new stage. “There has never been an opportunity like this in three decades of defense in Spain,” has declaredaware that the Expenditure supercycle European military, triggered by war in Ukraine, represents an unrepeatable occasion for the company. From radar to armored ones. Until recently, Indra It was synonym of air traffic control systems or military missions management software. His presence in defense was important but discreet, focused on digital solutions rather than tangible product. However, in the middle of a war where drones, artillery and armored scenethe company now seeks to occupy the physical space of The military industry: Also manufacture the “metal”, not just electronics. In June, he raised his participation in Tess defends 51%taking control of the consortium that produces The VCR Dragon For the Spanish army. The step was not exempt from friction: Indra faced Santa Barbara Systems (controlled by the American General Dynamics) for the course of the company, even suggesting its purchase. Although this was rejected, interest persists and the company explores other acquisitions, including the defense division from Iveco In Italy. Indra Buy and buy. The Financial Times counted That to reach 10,000 million euros of billing in 2028 (a two -year advanced target compared to the original plan), the road map includes more than 20 possible purchase operations in Europe. On the horizon even an option as delicate as tempting appears: acquire Mechanical & Engineering notary (EM & E), the armament firm founded by the president himself, which, a priori, would create an obvious conflict of interest, but also a technical synergy difficult to match. The civil DNA dilemma. Despite of the turn Towards the defense, Indra remains a mostly civil company: its IT unit, MINSAIT, represents 62% of your income, compared to 21% of the military area. Minsait competes in the corporate world with giants such as Capgemini or Infosys, providing technological services to banks, health systems and public administrations. Some analysts and former director see in this duality a Structural contradiction: defense and services are “water and oil”, Explain the FT. In fact, when in 2024 the company announced that the defense It would be his priority And that Minsait would become “not strategic”, the market reacted positively Given the possible sale of your business not related to war. The company failed to close any agreement and now notary states that it only wants burn off the branch of payments, while it begins to revalue the rest of the unit as a source of dual use technologies (AI, cybersecurity or cloud solutions) that can adapt to the military environment. This reconsideration, although pragmatic, keeps alive the tension between what the market desires (a purely defensive company) and what the management is willing to offer. Reputation and influence. It is the last of the legs that was analyzed in the Times report. Although their actions have quadrupled since the Russian Invasion of Ukraine and its market value already exceeds 6,000 million In euros, Indra continues to quote with a strong discount regarding its European counterparts. While Bae is valued at 25 times its planned benefits, and Rheinmetall touches 60 times, Indra stays in just 18. Reasons? According to analysts As Beatriz Rodríguez de Bestinver, the growing interference of the Spanish government in the corporate strategy, which generates uncertainty about economic logic behind some decisions. It is also pointed out that, despite its turn, Indra is not yet perceived as a defense company in its purest form. Nor does the perception of improvisation in the transition from software to military hardware or doubt about whether the State be willing to firmly support the qualitative leap. The put by war. No doubt, the Spanish case tests the European model of rearme: Can a historically pacifist country lead a robust defense industry without sacrificing its institutional culture? The scribe plan It seems clear: cover all dimensions of the Modern combat. In the sea, Indra supplies Radars and Sónar for the submarines of Navantia, and in the air, leads Spanish participation in the Future Fuat Air System (FCAS), together with Airbus and Dassault. Plus: in space bought 90% of the Hispasat satellite operator for 725 million euros, and on land, already controls part of armored production, with a view to incorporating armament and sensors. It even has a participation In ITP AeroManufacturer of aeronautical components. Yes or no. In summary, the concept of “total war” seems to have penetrated the Indra strategywhich is no longer raised as a party supplier, but as a Comprehensive actor of the European war ecosystem. Notary summarize His vision with a phrase that contains both urgency and ambition: “We would not forgive if we were not able to transform this company into what … Read more

Spain has decided to rearm and for the moment there is a company that is benefiting from it: Indra

Morgan Stanley has raised the target price of indra 118%up to 47 euros, turning the Spanish technology into its most optimistic commitment to the sector. The reason has a lot to do with its change in strategy. Although Indra has a long time in defense, lately it has redoubled efforts. Why is it important. The American bank sees in Indra “the hidden European defense champion, a company that has made its military business grow 25% in the last two years With 18% margins. Its transformation of software company to the defense giant is working. “European champion” is business jargon to refer to a leading company in its sector at European level that also competes worldwide. The context. The Ukraine conflict began to change the rules. Europe will allocate more than 11,000 million euros only in drones, according to Indra estimates. NATO has set as a goal Raise defense expenditure up to 5% of GDP In 2035, against current 2%. Something that has put on the agenda The negative of Spain In recent days in front of Repliations announced by the United States. Yes, but. Spain has adhered to the NATO plan, but the aforementioned negative of the Spanish government shields that 2.1% of GDP “is sufficient.” Well below the ambitions of its European partners. In detail. The turning point marks it The creation of the Fourth Divisioncalled Indra Weapon & Ammunition, without ambiguities. It joins the other three divisions: Indramind (AI). Indra Land Vehicles (land vehicles). Indra Space (satellites). Together they make up a military ecosystem that covers from drones to laser systems. Between the lines. The bet goes beyond the conjunctural opportunism. Indra is building capabilities that Spain did not have, from guidance systems to unmanned weapons through directed energy. Its president, Ángel Escribano, recognized that “high foreign dependence” explains why the State has chosen Indra as its industrial armed arm. And now what. Morgan Stanley has projected that the defense and aerospace sectors represent two thirds of Indra Ebitda in 2026. AND Indra is already exploring the opening of an office in kyivunequivocal sign that he sees in Ukrainian reconstruction a lasting opportunity. Outstanding image | Indra In Xataka | Ukraine has updated its rewards system: the big goal is to eliminate a Russian soldier who is not in the front

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