Skip to content
Welcome, thoughtbot's Giant Robots listeners!Start here
Iran Conflict 2026
21SEP

DIU ranks Gauntlet II drone winners

3 min read
15:34UTC

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.

ConflictDeveloping
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
Office for Budget Responsibility
Office for Budget Responsibility
The OBR's 28 October forecast assumed $82 oil for 2026 and 2027, from market prices for the ten working days to 19 August, and blamed dearer wholesale energy on the war without naming Iran. It expects CPI inflation close to 4% in early 2027 even at that price.
Hengaw, Kurdish rights group
Hengaw, Kurdish rights group
Hengaw reported the 3 November hangings of Amirhossein Maleki and Amirhossein Ebrahimi in Isfahan, saying Ebrahimi was tortured into confessing and that nine of 12 people sentenced to death in the case have now been hanged. Iran's judiciary holds that the defendants killed members of the security forces.
FINTRAC, Canada's financial intelligence unit
FINTRAC, Canada's financial intelligence unit
FINTRAC worked with the US Treasury on the 6 November designation of eight money services businesses in British Columbia, Ontario and Quebec. Treasury says the businesses still operate, some under new names, so closing them falls to Ottawa.
Abdul Qadir al-Dakhil, Governor of Nineveh
Abdul Qadir al-Dakhil, Governor of Nineveh
Al-Dakhil cancelled three Mosul International Airport contracts on 7 November over alleged links to armed groups, after meeting Prime Minister Ali al-Zaidi in Baghdad. He named no group or company, and said the contracts will go to international companies.
Kuwait
Kuwait
Kuwait condemned the Houthi missile fired towards the Madinah region on 5 November and restated its support for Saudi Arabia, the Qatar News Agency reported. Its state tanker company, Kuwait Oil Tankers Company, is among the Gulf state fleets on Iran's expanded Hormuz list.
Scott Bessent, US Treasury Secretary
Scott Bessent, US Treasury Secretary
Treasury designated an alleged Chandigarh false-flag network on 4 November and eight Canadian exchangers on 6 November, while State sanctioned alleged MANPADS intermediaries. None of the actions touches an oil buyer; they target the paper, cash and procurement around Iran's trade.

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