Artificial intelligence (AI) is becoming more prevalent in defense and military applications, a shift highlighted by Australia-based startup Arkeus’s recent series A fundraising of US$18 million for its AI-powered sensing systems for autonomous platforms. “We’re seeing defense move toward software-defined, autonomous systems where sensing and decision-making at the edge are critical,” said Nick Capell, the investment director of QIC Ventures, Australia, the investment firm that led the funding round. “Arkeus sits directly in that shift, delivering a step-change in how platforms perceive their environment and how quickly that translates into action.”

Sensors for autonomous systems

Arkeus, which was cofounded in 2020 by CEO Simon Olsen and CTO Jonathan Nebauer, develops sensing technology for defense applications, specifically AI-driven autonomous systems. The startup’s hyperspectral optical radar (HSOR) uses hyperspectral imaging to simultaneously capture multiple layers of visual data, allowing a platform equipped with AI to “see” across the electromagnetic spectrum. This enables it to identify objects in real time in day or night and in suboptimal conditions, like through smoke or haze, where traditional sensors struggle.

The startup’s hyperspectral optical radar (HSOR) uses hyperspectral imaging to simultaneously capture multiple layers of visual data, allowing a platform equipped with AI to “see” across the electromagnetic spectrum.

Olsen explains that conventional cameras won’t be able to distinguish between a decoy and what the decoy is mimicking, but HSOR can read the object’s spectral signature, giving a more complete picture. “Machines can’t act autonomously if they can’t truly perceive their environment,” said Olsen. “In the moments that matter most, systems are still flying blind. Data [are] collected but not understood in time to act. That’s the problem we set out to solve.”

Expanding reach and scaling technology

The company plans to use the investment to accelerate its global reach and scale its core HSOR technology. As part of this expansion, Arkeus says it plans to establish advanced manufacturing capabilities in the United States and Queensland, Australia, as well as aid in the deployment of its AI-powered sensing systems. “Establishing a manufacturing and engineering base in Queensland gives us the ability to scale alongside our customers and support long-term defense programs from within Australia and across the Pacific,” said Olsen.

According to Arkeus, the company will be working with the Australian Army Wide Area Airborne Surveillance Program to improve the sensing capabilities of its Tactical UAS fleet. In addition, the startup says it has secured competitive contracts with the US Department of Defense. The technology is also already integrated with drone manufacturers like AeroVironment, Textron, Tekever and the Boeing subsidiary Insitu.