Palladyne AI launches Palladyne Defense, combining embodied AI, autonomous systems, and U.S. manufacturing to deliver scalable, low-cost attritable defense systems while expanding revenue and reshoring critical capabilities.
Salt Lake City, Utah - November 18, 2025
Palladyne AI, a Salt Lake City-based developer of AI software for autonomous platforms, today announced the acquisitions of GuideTech LLC (Kansas City, KS) and two Crucis companies—Warnke Precision Machining (Oxford, MI) and MKR Fabricators (Saginaw, MI). The acquisitions, combined with the defense variant of Palladyne™ Pilot embodied AI (now branded SwarmOS™), establish Palladyne Defense, a new operating division integrating AI, autonomous systems, and U.S.-based precision manufacturing.
Palladyne Defense is designed to deliver revenue-generating programs, scalable production capacity, and advanced defense capabilities aligned with U.S. Department of War modernization priorities, including intelligent autonomy, rapid iteration, and reshoring of critical defense technology.
Ben Wolff, President and CEO of Palladyne AI, said: "This marks a defining inflection point for Palladyne AI. By combining breakthrough autonomy with American manufacturing strength, we are creating a fast, scalable defense enterprise. Our ethical embodied AI enables machines to perceive, decide, and act independently while remaining aligned with human intent. Palladyne Defense advances the Department of War’s priorities by delivering resilient, low cost-per-effect, reshored defense systems, ensuring America’s ability to build and sustain next-generation platforms."
The acquisitions immediately bring existing revenue from major defense primes and emerging companies, forming a foundation for growth. Palladyne expects the combined operations to more than triple its 2024 revenue of $7.8 million by 2026, with adjusted EBITDA positivity projected. The company will invest approximately $5 million over 12–18 months to bring GuideTech’s loitering munitions systems to full operational readiness (TRL 9). The combined companies also bring a backlog exceeding $10 million.
Redefining the Mid-Tier Prime
Palladyne Defense merges autonomy, avionics, attritable weapons systems, and domestic manufacturing into a vertically integrated enterprise built for speed, adaptability, and scalability. This approach bridges the gap between large, process-driven primes and smaller innovators lacking production depth.
"Our vertically integrated model allows us to meet emerging defense and public safety needs while reshoring capability and accelerating innovation. This is how America maintains its technological advantage—by building it here, with intelligence at the edge and purpose at the core," Wolff added.
Division Architecture
Palladyne Defense comprises three core elements:
Reshoring Impact
By combining engineering, autonomy, and production, Palladyne Defense strengthens supply chain security and ensures domestic access to mission-critical components. GuideTech contributes advanced avionics and flight software, while the Crucis Companies provide full-spectrum domestic manufacturing, supporting programs with Lockheed Martin, Boeing, and Kratos.
Non-Competitive Collaboration Model
Palladyne Defense will supply avionics, components, software, and design services while filling gaps in capabilities not addressed by traditional primes. This positions the company as a collaborator and force multiplier within the broader defense ecosystem.
Operational Strength
Kevan Johnston, President of Palladyne Manufacturing, commented: "By joining Palladyne AI and GuideTech, we gain scale and technology to better serve America’s defense industry. This partnership strengthens our ability to deliver high-quality U.S.-made components while maintaining a competitive, resilient defense industrial base."
Palladyne Commercial
The commercial division continues to deploy Palladyne™ IQ and Pilot for industrial and commercial sectors, applying the same AI technology to improve productivity, safety, and efficiency.
Transaction Overview
Earlier this. year, Palladyne secured a new Air Force Research Laboratory (AFRL) contract to migrate its Palladyne Pilot AI software to next-generation, U.S.-made AI chipsets. The 26-month project will expand Palladyne Pilot’s compatibility beyond current Nvidia and Qualcomm hardware, aligning with the Department of Defense’s push to secure domestic AI supply chains.
See recent TechBuzz coverage of Palladyne AI.
Learn more at palladyneai.com and from the video below:
