Dassault Aviation, the French aerospace group behind the Rafale fighter, has led a €200 million ($234 million) Series B investment in autonomous drone startup Harmattan AI, as part of a long-term strategic alliance. The funding round values the Paris-headquartered company at €1.4 billion, making it France’s first defense-focused unicorn.

Under the agreement, Harmattan will collaborate with Dassault on the development of onboard artificial intelligence for future combat aviation platforms, including the upcoming F5 upgrade of the Rafale. A key focus will be AI systems designed to manage and coordinate unmanned aerial vehicles, the two firms said in a joint announcement on Monday.

The investment comes amid ongoing challenges facing the trilateral Future Combat Air System (FCAS) project involving France, Germany and Spain. Progress has been slowed by disputes between Dassault Aviation and Airbus over governance and division of responsibilities. FCAS is intended to integrate a next-generation fighter aircraft with drones and unmanned carrier platforms.

French President Emmanuel Macron welcomed the partnership, calling it “essential” in a post on X. He said the deal strengthens France’s strategic independence, advances the technological edge of its armed forces in AI-driven defense systems, and supports national economic interests.

Macron had been expected to meet German Chancellor Friedrich Merz in December to address disagreements within the FCAS program, with the aim of reaching a resolution by the end of 2025. However, no public updates have been issued by Paris or Berlin since then.

Dassault Aviation Chief Executive Eric Trappier said the collaboration underscores the company’s ambition to embed advanced autonomous capabilities into future air combat platforms. “This partnership enhances our capacity to deliver the sophisticated operational capabilities our armed forces will need in the decades to come,” he said.

Trappier has previously stated that France—through Dassault and its industrial partners Safran and Thales—retains the technical capacity to independently develop a next-generation fighter aircraft if required.

Harmattan said the valuation achieved in the Series B round represents a sharp increase from its earlier Series A, driven partly by rising interest from major industrial groups. The company declined to disclose the full list of investors or the precise size of Dassault’s contribution. Motier Ventures, a French investment firm, confirmed via LinkedIn that it has renewed its backing of the startup.

The company now employs more than 130 staff, with an average professional experience of 15 years. Over the past year, Harmattan has recruited senior personnel from aerospace and defense firms including Safran and Isar Aerospace.

Dassault is currently developing an unmanned “loyal wingman” drone intended to operate alongside the Rafale F5, and Harmattan’s AI technology will support autonomy for both the manned aircraft and its drone counterparts. The partnership aligns with Dassault’s broader strategy to integrate sovereign AI solutions across its combat systems.

Funds raised in the latest round will be used to expand Harmattan’s AI-powered product deployments and scale manufacturing for platforms focused on intelligence, surveillance, reconnaissance, drone interception and electronic warfare.

Harmattan AI CEO and co-founder Mouad M’Ghari said the agreement represents a major milestone for autonomous military systems. “By combining cutting-edge AI with proven combat-aviation expertise, we are helping define the future of cooperative air warfare,” he said.

Founded in April 2024, Harmattan describes its approach as building “vertically integrated autonomous systems,” spanning layered air defense, coordinated surveillance and strike drones, electronic-warfare tools, and command-and-control software. The startup previously raised $42 million in early funding from investors including FirstMark and Atlantic VC.

In September, Harmattan secured a contract with the UK Ministry of Defence for up to 3,000 autonomous drones, following a June order from France’s defense ministry for 1,000 combat drones to be delivered by the end of 2025. The drone supplied to French forces last year was a 1.8-kilogram quadcopter with a 40-minute endurance, equipped with infrared sensors produced by French manufacturer Lynred.