🛡️💰 Defense Tech Hits $2.5B

AI Wars Drive Unprecedented Funding

June 24, 2025

Dear Friend,

Last week witnessed over $2.5 billion in defense mobility funding alone, led by Applied Intuition's massive $600 million Series F at a $15 billion valuation and Mach Industries' $100 million raise for precision cruise missiles. European defense giant Helsing's €600 million round at a €12 billion valuation signals transatlantic competition in AI-powered battlefield systems. Meanwhile, Honda-backed Helm.ai unveiled its camera-based vision system for Level 2+ and Level 3 autonomous driving, positioning the startup's technology for integration into Honda's 2026 Zero series electric vehicles as mass-market autonomous driving solutions advance beyond traditional defense applications.

Energy transition faces a critical inflection point as Senate GOP tax credit revisions threaten to phase out solar and wind incentives by 2028 while extending nuclear, geothermal, and hydropower credits through 2036. Yet private capital continues flowing, with Scale Microgrids securing $275 million for 140MW of distributed battery storage projects across five states, and the EU announcing €241 billion in nuclear investment requirements through 2050. Fusion energy maintains momentum with $7.1 billion collectively raised across the sector, including Pacific Fusion's remarkable $900 million Series A.

Physical AI pivots toward industrial deployment as Bosch's Boyuan Capital forms a joint venture with Galbot to commercialize humanoid robots in high-precision manufacturing. While pure-play physical AI funding remained limited this week, the broader AI ecosystem exploded with Mira Murati's Thinking Machines Lab raising $2 billion at a $10 billion valuation and xAI pursuing $4.3 billion in additional equity funding. The shift from research to application becomes clear as seven of 2025's largest US M&A deals center around AI integration.

These developments reveal a maturing ecosystem where defense applications drive autonomous systems funding, policy uncertainty accelerates energy storage investment over renewables, and physical AI transitions from venture capital to strategic partnerships with industrial giants.

Stay sharp,

Vitaly Golomb
Managing Partner
Mavka Capital

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Mobility

1. Honda-Backed Helm.ai Launches Camera Vision System

Honda Motor-backed startup Helm.ai unveiled its camera-based system called Helm.ai Vision to interpret urban environments for Level 2+ and Level 3 autonomous driving, with plans to integrate the technology into Honda's 2026 Zero series electric vehicles and discussions underway with other automakers for mass-market deployment.

2. Mach Industries Raised $100 Million Series B

Two-year-old defense tech startup Mach Industries confirmed a $100 million funding round at a $470 million valuation, led by Khosla Ventures and Bedrock Capital with participation from Sequoia Capital. The company, founded by 21-year-old CEO Ethan Thornton, develops vertical liftoff vehicles and precision cruise missiles for military applications.

3. Applied Intuition Raised $600 Million Series F

Applied Intuition raised $600 million at a $15 billion valuation in a round co-led by BlackRock and Kleiner Perkins, with the company expanding deeper into defense applications for autonomous vehicle technology. The autonomous vehicle software company works with most major automakers and is increasingly pushing into military autonomous systems.

4. Helsing Raised €600 Million Series C

European defense tech company Helsing secured €600 million in funding led by Spotify's Daniel Ek's investment firm Prima Materia, achieving a €12 billion valuation. The Munich-based company develops AI systems that turn battlefield data into real-time visualizations for military decision-making.

5. OpenAI Military AI Contract

The Pentagon's Chief Digital and Artificial Intelligence Office awarded OpenAI a $200 million contract to develop prototype frontier AI capabilities for national security challenges in warfighting and enterprise domains. This represents one of OpenAI's largest military contracts following its partnership with defense-tech startup Anduril.

6. Applied Intuition Valuation Growth

Applied Intuition's $600 million funding round more than doubled its valuation from $6 billion to $15 billion within just one year, representing significant investor confidence in commercialized autonomous vehicle technology. The Mountain View-based company serves major automotive manufacturers including Toyota and Volkswagen with AI-powered vehicle intelligence solutions.

Energy Transition

1. Scale Microgrids Raised $275 Million in Project Financing

Scale Microgrids secured $275 million in project financing to support 140MW of distributed generation projects, including battery storage installations across New York, Pennsylvania, New Jersey, Connecticut, and California. The transaction was led by KeyBanc Capital Markets, Cadence Bank, and New York Green Bank, with participation from Investec, Mitsubishi HC Capital America, and Connecticut Green Bank. This financing brings Scale Microgrids' total funding raised to over $1 billion, with many projects already under construction and expected to enter operation in 2025 and 2026.

2. Comprehensive Fusion Startup Funding Analysis

TechCrunch published a comprehensive analysis of fusion startups that have raised over $100 million, highlighting the sector's growing investor confidence. The analysis shows that fusion startups have collectively raised $7.1 billion to date, with the majority concentrated among a handful of companies including Commonwealth Fusion Systems ($2 billion total), TAE Technologies ($1.79 billion), and Helion ($1.03 billion). Pacific Fusion emerged with a massive $900 million Series A, representing one of the largest single funding rounds in the fusion sector.

3. Senate GOP Bill on Clean Energy Tax Credits

The Senate Finance Committee released its version of the reconciliation bill on June 16, proposing significant changes to clean energy tax credits. The bill would phase out solar and wind energy tax credits by 2028, while extending incentives for hydropower, nuclear, and geothermal energy through 2036. Projects must start construction before December 31, 2025, to receive 100% of available tax credits, with reduced credits of 60% for 2026 construction starts and 20% for 2027 starts.

4. Hydrogen Tax Credit Elimination Risk

Industry experts warn that proposed shorter tax credit deadlines in the reconciliation bill would severely impact clean hydrogen investment in the United States. The bill risks derailing numerous green hydrogen projects, with hydrogen tax credits potentially ending in 2025, years earlier than originally planned.

5. EU Nuclear Energy Investment Requirements

The European Commission announced that EU countries' plans to expand nuclear energy will require €241 billion ($278 billion) in investments by 2050. The investment includes €205 billion for new nuclear facilities and €36 billion for extending the operational lifespan of existing reactors. The EU aims to boost nuclear power capacity from the current 98 GW to 109 GW by 2050.

6. California Clean Energy Projects

The California Energy Commission approved the Darden Clean Energy Project, featuring 1,150 MW of battery energy storage and a 1,150 MW solar array, marking the first project fast-tracked under the CEC's Opt-In Certification program. Avangrid Inc. achieved commercial operation at its 57 MW Camino Solar project in Kern County, California.

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Physical AI

1. Boyuan Capital and Galbot Form Joint Venture

Boyuan Capital, the market-oriented investment platform under the Bosch Group, announced a joint venture named BOYIN INNOVATION ALLIANCE with Galbot, a leading innovator in building general-purpose humanoid robots powered by Embodied AI.

2. Mira Murati's Thinking Machines Lab Raises $2 Billion 

Thinking Machines Lab, the artificial intelligence startup launched by former OpenAI executive Mira Murati, raised close to $2 billion at a valuation of $10 billion before the investment. Andreessen Horowitz led the funding round, with participation from Accel and Conviction Partners, among other investors.

3.  Elon Musk's xAI Funding Talks

Elon Musk's artificial intelligence startup xAI is in talks to raise $4.3 billion through an equity investment on top of the $5 billion it has recently been trying to borrow from debt investors. Musk's company, which is responsible for the AI chatbot Grok, needs the new money, in part, because it has already spent most of what it previously raised. While xAI is not specifically focused on physical AI, the substantial funding activity demonstrates the overall AI investment climate during this period.

 

Information provided by Mavka Capital. Securities are offered through Finalis Securities LLC, a member of FINRA/SIPC. Mavka Capital and Finalis Securities LLC are separate, unaffiliated entities. The information contained in this message does not constitute legal advice and should not be considered an offer to purchase or a solicitation to sell securities or any other financial instruments; it is for informational purposes only.