Microsoft Secures $170.4M Cloud Contract & GPT-5.2 for U.S. Government - Defense AI Brief #26

January 26, 2026 - Defense AI Brief
Hi there,

Welcome to this week's edition of Defense AI Brief.

In today's newsletter, we delve into the latest advancements and partnerships in the defense AI sector. iBase-t has introduced Solumina AI, a new platform designed to enhance operational efficiency in the aerospace and defense industries. Meanwhile, Anduril has teamed up with Dirac to improve AI-driven manufacturing processes, marking a significant step forward in industrial efficiency.

Additionally, Microsoft Azure has launched GPT-5.2 for U.S. Government Clouds, promising enhanced reasoning capabilities for government applications. In other news, webAI has appointed Dr. Paul J. Maykish as its new Chief Intelligence Officer and launched an Intelligence Lab to develop robust intelligence systems. Stay tuned as we explore these stories and more in this edition.
iBase-t Introduces Solumina AI for Aerospace and Defense
The company iBase-t has launched Solumina AI, a specialized AI platform aimed at improving efficiency and decision-making in the aerospace and defense sectors. Read more
Anduril Partners with Dirac for AI in Manufacturing
Anduril has partnered with Dirac to implement AI-driven work instruction authoring in its manufacturing operations, resulting in significant efficiency improvements. Read more
Microsoft Azure Introduces GPT-5.2 for U.S. Government Clouds
On January 15, 2026, Microsoft Azure announced the launch of GPT-5.2 for use in Secret and Top Secret cloud environments, enhancing reasoning and problem-solving capabilities for U.S. Government applications. Read more
webAI Appoints New Chief Intelligence Officer and Launches Intelligence Lab
webAI has appointed Dr. Paul J. Maykish as Chief Intelligence Officer and launched the webAI Intelligence Lab to develop intelligence systems for public and corporate sectors. Read more
Mistral Solutions Wins ₹100 Crore Defence Contract
AXISCADES Technologies' subsidiary, Mistral Solutions, has secured a ₹100 Crore contract for India's LLTR Ashwini programme, enhancing low-altitude surveillance with AI technology. Read more
Ukraine to Share Combat Data for AI Training
Ukraine's Defence Minister announced plans to allow allies to train AI models using combat data from the war with Russia, including battlefield information and drone footage. Read more
Auterion Conducts Successful Drone Swarm Strike Test
Auterion has achieved a milestone by conducting a live-fire combat drone swarm strike at a U.S. military range in Florida. This test involved a single operator controlling three autonomous drones to hit separate targets, demonstrating advancements in AI-enabled military technology. Read more
GrayMatter Robotics Finalist in DoD Innovation Challenge
GrayMatter Robotics has been selected as a finalist in the Department of Defense's Maintenance Innovation Challenge, where they will present their AI-driven maintenance solutions. Read more
Protopia AI Secures SHIELD Contract with Missile Defense Agency
Protopia AI has been awarded a contract under the Missile Defense Agency's SHIELD program, which aims to improve military operations with advanced AI capabilities. The contract has a ceiling of $151 billion and focuses on privacy-preserving AI solutions for secure data usage in defense. Read more
Twentyfour Industries Raises $11.8M for Defense Drones
Munich-based startup Twentyfour Industries has secured $11.8 million in funding to mass-produce its Q-X drones for European militaries, aimed at enhancing non-kinetic mission capabilities. Read more
Microsoft Secures $170.4M Cloud Contract with U.S. Air Force
Microsoft has been awarded a $170.4 million contract to provide cloud services to the U.S. Air Force under the Cloud One program, ensuring secure digital infrastructure for military users. Read more
Hadrian Launches AI-Powered Additive Manufacturing Division
Hadrian has introduced Hadrian Additive, a division focused on scalable additive manufacturing for the U.S. Defense Industrial Base, set to start in 2026. Read more
Sky Hunter Secures $4M for AI Drone Tech
Ukrainian defense startup Sky Hunter has raised $4 million in pre-seed funding to advance its AI-driven drone technology, which is used by the Ukrainian Armed Forces. Read more
Leidos and OpenAI Partner for AI in Federal Operations
Leidos and OpenAI have announced a partnership to integrate AI into federal operations. The collaboration aims to enhance government efficiency in areas like digital modernization and national security. Read more
SIRBAI Launches AI-Powered Drone Swarm at UMEX 2026
SIRBAI has introduced the first AI-powered autonomous drone swarm technology in the Middle East at UMEX 2026, designed to enhance national security and mission effectiveness. Read more
China's Military Unveils AI Drone Swarm System
The People's Liberation Army of China has demonstrated a new AI-controlled drone swarm system, enabling one operator to manage 200 drones. This advancement highlights China's progress in military drone technology. Read more
Picogrid Partners with U.S. Army for AI Counter-Drone Defense
On January 23, 2026, Picogrid and the U.S. Army's 1st Cavalry Division demonstrated an AI-driven counter-drone defense system at Fort Irwin, California, as part of the Army's modernization efforts. Read more
Raft Secures Contract to Enhance AI for CENTCOM
Raft has been awarded a contract by the Chief Digital and Artificial Intelligence Office to improve the AI Mission System for CENTCOM, enhancing computer vision capabilities for military use. Read more
AIM Wins $4.9 Million Contract with U.S. Air Force
AIM has secured a $4.9 million contract from the U.S. Air Force to deploy AI-driven autonomous machinery for base construction and airfield damage recovery, aiming to improve safety and efficiency in military operations. Read more
ZenaTech Develops Quantum Computing for Defense AI
ZenaTech is working on a quantum computer hardware platform to enhance AI solutions for US Defense, with a prototype expected by 2026. Read more
Morph Systems Secures Pre-Seed Funding
Morph Systems, a Korean startup, has received pre-seed funding from Mashup Ventures and 500 Global to develop data integration platforms for defense and U.S. manufacturing. Read more
Lockheed Martin and XTEND Collaborate on AI Drone Swarms
The collaboration between Lockheed Martin and XTEND seeks to advance drone swarm technology by incorporating artificial intelligence for improved military operations. Read more

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