Defense Startup Smack Technologies Raises $61M as Pentagon Diversifies AI Vendors
The Series B round follows a U.S. Department of Defense designation of Anthropic as a supply-chain risk, accelerating the shift toward specialized military AI.
Defense-tech startup Smack Technologies is raising $61 million in Series B funding to accelerate the deployment of AI tools designed for decentralized battlefield decision-making. The funding surge comes as the U.S. military pivots away from centralized command structures toward tactical-edge capabilities.
The investment round includes participation from Costanoa Ventures, First In, Point72 Ventures, and Geodesic Capital. Smack Technologies intends to use the capital to scale the production of Omega, its command-level AI stack, and Alpha, an edge-level AI stack that utilizes proprietary hardware. The company has already secured prototyping contracts from the Marine Corps Warfighting Lab (MCWL) and the Joint Fires Network (JFN).
A Strategic Shift in AI Procurement
This funding drive coincides with a broader strategic realignment within the Pentagon. In March 2026, the Department of Defense declared AI lab Anthropic a "supply-chain risk," a move that has prompted various military branches to diversify their vendor portfolios. By reducing reliance on a small number of general-purpose AI giants, the Pentagon is increasingly favoring specialized startups focused specifically on national security requirements.
According to Andy Markoff, co-founder and CEO of Smack Technologies, the Marine Corps and Navy are pressing for faster production to prepare for future conflicts where communications may be degraded. Markoff stated that "the future of war ... will be more decentralized than any conflict that we've ever fought," necessitating tools that can function without constant connectivity to a central hub.
The Pursuit of Decision Dominance
For the U.S. military, the transition is a move toward "Decision Dominance." While centralized operations centers were effective during the conflicts in Iraq and Afghanistan, peer-adversary environments require the ability to shorten the "kill chain" through real-time computer vision and reinforcement learning at the tactical edge. The goal is to empower lower-level commanders to make rapid, data-driven decisions without relying on a vulnerable, centralized communication link.
Future Outlook
As the Pentagon continues to vet new AI partners, the success of Smack's Omega and Alpha systems will serve as a bellwether for the military's ability to integrate proprietary hardware with AI at the edge. Observers will be watching to see if other major AI labs face similar supply-chain risk designations, which would further accelerate the migration of defense spending toward niche, security-first AI firms.