Pentagon inks $500 million deal with Perennial Autonomy for counter-drone tech

The Pentagon has awarded Perennial Autonomy, a California-based startup, a $500 million contract to procure AI-driven counter-drone technology. The deal, announced by Joint Interagency Task Force 401 (JIATF-401), includes systems like Merops interceptors, Bumblebee quadcopters, and Hornet midrange strike drones, already deployed by U.S. forces. Perennial’s technology, originally developed as Project Eagle under former Google CEO Eric Schmidt, was initially used by Ukraine to counter Russia’s Shahed drones. The U.S. military now employs these interceptors against Iran’s Shahed variants, with Army Secretary Daniel Driscoll noting a cost advantage—Merops drones cost about $15,000 each, compared to $30,000–$50,000 for Shaheds. The contract aligns with the Pentagon’s Drone Dominance initiative, a billion-dollar effort to equip troops with affordable, disposable drones. JIATF-401 also awarded Perennial a separate $5.2 million deal in January for the Bumblebee V2 counter-drone system, while the Army tested Hornet drones in Germany this March. Perennial has expanded production, including manufacturing operations in Europe, to meet growing demand. The contract underscores the military’s focus on layered drone defenses, as drones remain a critical threat in modern warfare. Brig. Gen. Matt Ross of JIATF-401 called drones ‘the defining threat of our time,’ emphasizing the need for scalable, low-cost interceptors. The partnership aims to deploy these systems globally to protect U.S. facilities and forces.