IRIA News

The Pentagon has awarded California-based defense startup Perennial Autonomy a contract worth up to $500 million to accelerate the deployment of counter-drone systems across the U.S. military, reflecting growing concerns over the rising threat posed by unmanned aerial systems in modern warfare.

The three-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract was awarded by Joint Interagency Task Force 401, also known as JIATF-401, a Pentagon organization responsible for testing, developing, and procuring counter-unmanned aerial systems (C-UAS).

Under the agreement, Perennial Autonomy will provide a range of AI-enabled drone defense systems already being used by U.S. forces operating in U.S. Central Command areas of responsibility.

The systems include the Merops interceptor drone, Bumblebee quadcopters, and Hornet midrange strike drones.

The Pentagon said the contract is intended to rapidly expand the military’s layered drone defense network as drone warfare continues to reshape conflicts in the Middle East and Eastern Europe.

Growing Drone Threat

In a statement announcing the contract, Army Brig. Gen. Matt Ross, director of JIATF-401, described drones as “the defining threat of our time.”

“We must be proactive with creating a layered defense that deploys and scales low-cost, attractable air-to-air drone interceptors at all our facilities at home and abroad,” Ross said.

The contract comes amid increasing Pentagon concerns over the widespread use of cheap attack drones and loitering munitions in conflicts involving Russia, Ukraine, and Iran.

U.S. officials say recent fighting in the Middle East, including the ongoing Iran conflict, has accelerated demand for affordable interceptor drones capable of protecting troops, military bases, and critical infrastructure from one-way attack drones similar to Iran’s Shahed systems.

The Pentagon launched its “Drone Dominance” initiative in late 2025 to rapidly expand the use of low-cost, disposable drones across the armed forces. The initiative also aims to strengthen domestic drone manufacturing capacity and reduce production costs through large-scale procurement.

Technology Developed for Ukraine

Perennial Autonomy was reportedly founded by former Eric Schmidt under the name White Stork before later operating as Project Eagle and eventually rebranding as Perennial Autonomy.

The company initially developed its Merops interceptor systems for Ukrainian forces fighting against Russian drone attacks. The interceptor was specifically designed to counter Iranian-made Shahed drones widely used by Russia in Ukraine.

According to U.S. officials, the same interceptor systems are now being used by American forces against similar drone threats in the Middle East.

Army Secretary Daniel Driscoll told lawmakers during budget hearings last month that Perennial had rapidly scaled production of the Merops interceptor.

Driscoll described the economics of drone warfare as a battle of attrition, noting that the Merops interceptor currently costs roughly $15,000 per unit, while Shahed drones can cost between $30,000 and $50,000.

Military officials increasingly argue that using lower-cost interceptor drones is far more sustainable than relying on expensive missile defense systems such as Patriot interceptors to destroy relatively cheap unmanned aircraft.

AI-Enabled Counter-Drone Systems

The Pentagon said Perennial’s systems combine computer vision, radio frequency sensing, autonomous targeting, and jam-resistant communications to detect, track, and intercept hostile drones.

Officials added that human operators would still retain decision-making authority over the use of lethal force despite the systems’ autonomous capabilities.

The Merops interceptor is a fixed-wing drone launched from portable systems and designed specifically to destroy incoming aerial threats. The Bumblebee platform is a semi-autonomous quadcopter capable of reconnaissance, target tracking, and direct interception missions.

Meanwhile, the Hornet drone is a pneumatic-launched long-range strike platform reportedly tested by the U.S. Army earlier this year.

Defense officials said the systems were developed with lessons learned from the war in Ukraine, where electronic warfare and jamming have become major battlefield challenges. As a result, the drones are designed to operate in highly contested environments with strong resistance to electronic interference.

According to reports, Perennial’s technology has already been deployed along NATO’s eastern flank and has attracted interest from Gulf states seeking stronger air defense capabilities against drone threats.

The company also expanded manufacturing operations into Europe through a partnership with a German defense manufacturer aimed at increasing production capacity for Merops interceptor drones.

Earlier this year, JIATF-401 separately awarded Perennial a $5.2 million contract for its Bumblebee V2 counter-drone system.

Expanding US Defense Tech Partnerships

The contract highlights the growing role of Silicon Valley-linked startups in the U.S. defense sector as the Pentagon increasingly turns to commercial technology companies for rapid innovation.

Perennial’s workforce reportedly includes engineers and specialists from major technology firms, including Google, SpaceX, and Apple.

The Pentagon said the flexible procurement structure allows the military to quickly scale production based on operational needs and evolving threats. The contract will remain active for three years or until the full $500 million ceiling is reached, whichever comes first.