HavocAI's AI Boats Redefine Military Procurement with Speed and Low Cost

HavocAI, a Rhode Island-based defense technology startup, has secured $85 million in venture funding to scale the production of autonomous boats for the U.S. military and its allies. The round, closed in September 2025, brings the company's total funding to nearly $100 million since its January 2024 launch . The investment includes participation from B Capital, Up.Partners, In-Q-Tel (the CIA's venture arm), Lockheed Martin, and Taiwania Capital, a public-private fund from China Taiwan. The funding aligns with the $3.3 billion allocated in President Trump's "Big Beautiful Bill" for medium and small unmanned surface vessels (USVs) .

HavocAI's strategy centers on leveraging commercial boat manufacturing to reduce costs and accelerate deployment. The company retrofits standard vessels with AI-driven autonomy software, enabling them to function as robotic platforms. CEO Paul Lwin emphasized that the U.S. military's traditional shipbuilding process-often taking six years and hundreds of millions of dollars per vessel-contrasts sharply with HavocAI's model. By using off-the-shelf hulls and AI algorithms akin to self-driving car technology, the startup aims to deliver affordable, rapidly producible boats. For example, its 14-foot "Rampage" vessels were sold to the Navy for $100,000 each after a 2024 demonstration event .

The company's product portfolio includes the Rampage, a 38-foot "Seahound," a 42-foot "Kaikoa," and a 100-foot "Atlas" vessel undergoing testing in Rhode Island. Lwin described the Rampage as a low-cost, expendable asset, with pricing comparable to munitions. Larger vessels, such as those developed in collaboration with Lockheed Martin, command higher prices but offer advanced capabilities. HavocAI's autonomous systems integrate AI for navigation, sensor fusion, and fleet coordination, enabling distributed operations across large geographic areas .

Military adoption has already begun. Since 2024, the company has operated 20 vessels for the U.S. Army, Navy, and Defense Innovation Unit. The Navy's 2024 "Silent Swarm" exercise, where HavocAI demonstrated its tech, led to immediate purchases. The startup also partners with Metal Shark, a commercial boat builder, to integrate its autonomy platform into Metal Shark's unmanned fleet . Additionally, HavocAI's vessels are being tested by Poland for intelligence-gathering missions in the Baltic Sea .

The company's rapid growth reflects broader trends in defense innovation. The Big Beautiful Bill's emphasis on AI and rapid prototyping has spurred a wave of startups targeting military modernization. HavocAI's co-founders-Lwin, a former Navy EA-6B Prowler pilot, and Joe Turner, a naval surface officer-leverage their military experience to address operational needs. The startup now employs 80 staff, reflecting its accelerated expansion .

Despite its momentum, HavocAI faces competition from emerging rivals and regulatory scrutiny. The company was among several U.S. defense firms sanctioned by China in late 2024 for supplying arms to China Taiwan. However, Lwin and industry analysts argue that the shift toward autonomous systems is unavoidable, driven by the need for cost-effective, scalable solutions in an era of great-power competition .

Source: [1] HavocAI raises $85M to sell autonomous boats to the U.S. military and its allies (https://fortune.com/2025/10/09/havocai-85-million-autonomous-vessels-funding/)