Connect with us

Hi, what are you looking for?

Wednesday, Feb 12, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.

AI and Autonomy

Palladyne AI shares soar 27% on the back of new defense contract

Palladyne designed Pilot to allow unmanned systems and sensors to work together automatically

Palladyne AI shares soar 27% on the back of new defense contract
A drone user controls a small fleet of UAV. Image via Palladyne AI.

Palladyne AI Corp (NASDAQ: PDYN) has been awarded a new contract by the Air Force Research Laboratory (AFRL) to make its Palladyne Pilot AI software work with U.S. made AI computing chipsets.

As a result, company shares jumped 27.13 per cent on Tuesday following the announcement. The project will start in early 2025 and span 26 months.

The Palladyne Pilot software platform builds on the Closed Loop Ubiquitous Tasking and Control of Heterogeneous Exploring Sensors (CLUTCHES) framework. This framework merges sensor data and manages sensors in real-time on UAVs to improve situational awareness.

Palladyne designed Pilot to enable networks of collaborating unmanned systems and multi-modal sensors to work together. The delivers superior capabilities for applications such as intelligence, surveillance, and reconnaissance (ISR). The platform achieves this through its closed-loop system, a key feature that powers its real-time sensor management.

“Our development work with AFRL on the Pilot AI software platform has been critical to evolving the technology to benefit our DoD customers,” said Ben Wolff, CEO, Palladyne AI.

“By evolving Pilot to be able to operate on these next-generation AI chipsets, in addition to the AI chipsets from Nvidia and Qualcomm that we are already operating on, we believe we will have the opportunity to deliver the benefits of our enhanced autonomy Pilot platform to the vast majority of small drone platforms that will be deployed in the coming years.”

Read more: ‘They took our jobs!’: AI will replace many of us by 2030, WEF finds

Read more: Artificial intelligence is more than just a productivity booster: IBM study

Palladyne focuses on AI for robotics

The company develops AI software infrastructure that delivers innovative solutions, enabling businesses to harness advanced artificial intelligence capabilities. Its emphasis on cutting-edge technology attracts investors, particularly those focused on the AI sector.

Technical analysis suggests the stock may be poised for a bull flag breakout as it strives to reclaim the $8.00 mark. It also may have the potential for continued upward movement if momentum holds.

The company previously operated as Sarcos Tech. It also gained recognition as a deep value pick in 2023 when its stock price fell below its net working capital or quick liquidation value.

Palladyne AI focuses on AI for robotics, particularly in defense, logistics, and manufacturing, positioning itself strongly in a growing market. The recent contract with the Air Force Research Laboratory (AFRL) validates Palladyne’s technology while expanding its market reach within government and defense sectors.

The company’s strategic partnerships and ongoing development projects create a solid foundation for future growth. Investors appear optimistic about Palladyne’s potential to capture a larger share of the AI market as technology integration accelerates across traditional industries.

The global artificial intelligence in robotics market is experiencing significant growth, particularly in sectors such as defense, logistics, and manufacturing. In 2023, the market was valued at approximately USD$12.77 billion. It is projected to expand at a compound annual growth rate (CAGR) of 38.5 per cent from 2024 to 2030, reaching an estimated USD$124.77 billion by 2030, according to Grand View Research.

The AI and robotics market in aerospace and defense had a value of USD$17.2 billion in 2021.

It is expected to grow to USD$35.9 billion by 2031, at a 7.9 per cent CAGR over eight years.

.

Follow Mugglehead on Twitter

Like Mugglehead on Facebook

Follow Joseph Morton on Twitter

joseph@mugglehead.com

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

AI and Autonomy

It assesses mortality risk in non-small cell lung cancer patients

AI and Autonomy

Nvidia's 'Connect' program will help Firefly build an intelligent foundation model of the human brain

AI and Autonomy

Shared Services Canada has already applied the restriction to mobile devices it manages

AI and Autonomy

Over 3,800 people have signed a petition calling for it to be cancelled