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Estonian Minister of Defence Hanno Pevkur and Gundbert Scherf, Co-founder of European Defence-AI company Helsing sign a joint statment on AI technologies (Estonian Ministry of Defence)

BELFAST — Estonia and German defense artificial intelligence (AI) startup Helsing today signed a joint agreement based on developing the Baltic nation’s AI capabilities, a pact that also includes a €70 million ($90 million) investment from the manufacturer to stand up new operational facilities inside Estonia.

The Estonian Ministry of Defence said in a statement that the agreement with Helsing’s in-country subsidiary (Helsing OÜ) “is a key step” in exploring the potential of AI technologies, particularly those associated with “software-defined reconnaissance and strike capabilities.”

It also noted that Helsing will “collaborate closely” with Estonian industry partners to build out AI capabilities as a way of supporting national, strategic targets.

“The new security environment in Europe requires a determined response from governments as well as the defence industry to be ahead of the curve in developing and fielding modern defence capabilities,” said Hanno Pevkur, the Estonian Minister of Defence.

“The decision by Helsing to locate some of its operations to Estonia is also a sign of recognition for Estonia’s dedication to strengthening national defence and providing a conducive environment for defence tech companies.”

The new agreement also binds Estonia and Helsing to working together on AI military capabilities for the European Defence Fund (EDF) by drawing on lessons from international conflicts, and the two partners will “seek cooperation opportunities in testing new technologies,” noted Tallinn.

Helsing’s latest partnership comes after a cooperation agreement with Airbus to integrate AI technologies on the recently unveiled unmanned Wingman aircraft, designed to meet German Air Force requirements and work alongside crewed fighters like the Eurofighter Typhoon fourth generation type.

In line with sharpening deterrence against Russia, Estonia has approved a series of key defense policy changes to stimulate national military manufacturing growth, including the introduction in May of a €50 million ($55 million) defense industry fund, designed to invest “directly and through private funds in companies developing defence-related or dual-use technologies,” according to a government statement.

Tallinn has also committed to establishing a new defense industrial park for ammunition production in response to Europe’s output lagging behind Ukrainian demand and its war against Russia. The plan for the park, with an area up to 100 hectares, is specifically based around an ammunition plant for small, medium and large caliber shells and explosives handling facilities. In February, Tallinn said production could begin “within” two and a half years.