German drone manufacturer Quantum Systems has reportedly established an early foothold in the U.S. market, facilitated by CIA-affiliated investor In-Q-Tel (IQT).
Quantum’s Co-CEO, Sven Kruck, disclosed to Reuters that U.S. investors, including IQT, played a crucial role in their entry into Washington, securing contracts with the Central Intelligence Agency (CIA) and Federal Bureau of Investigation. “It made it easier to get started in the U.S. with clients CIA and FBI,” Kruck stated. He further noted that the business generated from a reconnaissance contract with U.S. intelligence agencies, albeit modest, helped to establish Quantum’s credibility.
Quantum Systems, a seller of reconnaissance, attack, and interceptor drones to countries such as Ukraine and Germany, is now one of the largest defense startups in Europe, with an estimated value of around $8 billion. However, like other defense firms, Quantum is restricted from selling technology developed in the U.S. to other countries without U.S. approval.
CIA and FBI did not immediately respond to Benzinga’s request for comments.
Europe Balances Sovereignty and US Ties
This development comes in the wake of France and Germany’s quest for alternative military software suppliers, with a focus on fostering data sovereignty, in a potential setback for Palantir Technologies Inc. (NASDAQ: PLTR). The countries are exploring the development of a European sovereign digital backbone, considering data-centric security, artificial intelligence, and cloud solutions.
However, in July, Germany sought collaboration with the U.S. to increase the production of American weapons on German soil. This initiative is part of a broader European strategy to utilize their defense-industrial capacity to mend strained ties with Washington.
Germany said continued defense cooperation with the U.S. remains essential, even as it works to become more self-reliant. Chancellor Friedrich Merz stressed the need for Europe to strengthen its own security, while NATO chief Mark Rutte said U.S. support remains indispensable for Ukraine’s defense.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock/ Anelo
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