Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
European Tech Sovereignty
19APR

DIU ranks Gauntlet II drone winners

3 min read
17:00UTC

The Pentagon's contest for cheap attack drones named its winners and about 60,000 drones of orders, while the first round's deliveries ran about 60 per cent complete.

TechnologyDeveloping
Key takeaway

Gauntlet II named its winners while Gauntlet I suppliers had delivered only about 60 per cent of orders.

The Defense Innovation Unit (DIU), the Pentagon's office for buying commercial technology, ranked the winners of Gauntlet II on 18 September⁠1. Gauntlet II is the second round of the Pentagon's fly-off contest to pick suppliers of cheap attack drones. DIU named five vendors in each of two categories, deep strike and close-quarters work, and officials put orders at about 60,000 drones. The round had been cut to 19 finalists in July.

Neros, the only firm on both lists, announced a 14,000-drone order worth more than US$100m on 30 September⁠2. In an earlier Pentagon attack-drone buy, only 43 per cent of the Archer drones Neros shipped cleared acceptance.

The first round's record sits underneath the new orders. Vendors had delivered 13,440 of the 22,320 drones ordered in Gauntlet I by 25 August, about 60 per cent, according to Inside Unmanned Systems as relayed by DroneXL⁠3. Only three vendors delivered in full, one of them Ukrainian Defense Drones. The roughly 8,880 drones still undelivered from Gauntlet I are being moved to the firms that ship.

AeroVironment, which reported record full-year revenue of US$1.98bn in June, shows the same gap from the supplier's side. On 9 September it said its funded backlog, the value of signed and funded orders not yet delivered, reached a record US$1.5bn at 1 August, up 37 per cent on a year earlier⁠4. First-quarter revenue rose 6 per cent, to US$480.5m.

Deep Analysis

In plain English

The Pentagon runs contests called Gauntlets to choose which companies will supply cheap attack drones. Firms fly their drones in tests, and the best performers win orders. The second contest has named ten winners, and the military plans to buy tens of thousands of drones from them. Companies that won the first contest have struggled to build and deliver drones fast enough, so the Pentagon is moving orders to the few firms that have delivered on time.

Deep Analysis
Root Causes

Most of the ten Gauntlet II winners are young firms with limited factory capacity. A contest can pick the best design in weeks, but building thousands of drones a month needs parts, staff and floor space that most entrants lack.

The programme's own rules sharpen the pressure. Moving undelivered units to vendors that ship punishes delay quickly, and it also hands extra volume to firms that already have the most capacity.

What could happen next?
  • Risk

    Reallocation to on-time vendors may leave US small attack-drone supply concentrated on Neros.

  • Consequence

    Gauntlet 2.5 and Gauntlet 3 give firms that failed to place a fresh chance within months.

First Reported In

Update #18 · Four EU states skip tenders on drone defence

DefenseScoop· 1 Oct 2026
Read original →
Different Perspectives
European Centre for International Political Economy
European Centre for International Political Economy
ECIPE found nine states gave about 97% of awarded cloud lots to home providers from 2018 to 2025, and every sovereignty-framed lot went to a domestic supplier. The think tank reads sovereignty clauses as a home-bias tool that narrows competition, with a 46% sole-bidder rate on a small sample.
Mistral AI
Mistral AI
Mistral opened a Munich industrial AI hub on 28 September with BMW and Siemens Energy work, and Germany's digital minister Karsten Wildberger praised it on the launch page. The French lab gains a German ministerial endorsement while its 21 October Nvidia partnership ties the work to US accelerators.
AWS European Sovereign Cloud
AWS European Sovereign Cloud
AWS will run its Brandenburg region for several hours on 24 October cut off from the AWS global backbone, with an EU-resident team. AWS says the test follows BSI's C3A criteria and will give regulators and customers verifiable evidence of separation.
Greenland government
Greenland government
Greenland signed a joint declaration with the EU and Denmark in September and received Virkkunen on 24 and 25 September. The Arctic Strategy now backs a cable linking Greenland directly to Europe, an alternative to Greenland Connect, which lands in Canada and Iceland.
Greek government
Greek government
Kyriakos Mitsotakis inaugurated DAEDALUS at Lavrion on 19 October, a €36m machine on Nvidia GH200 chips that anchors the PHAROS AI Factory. Athens paid 65% through Greece 2.0, making national recovery money the main funder of an EU AI Factory.
ASML
ASML
ASML reported record quarterly sales of €11.66bn and said planned supply for 2027 and 2028 will not fully meet demand. It plans about 30% more capacity in 2027, and some customers want to book for 2029 and 2030.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.