The U.S. Army has awarded a contract worth up to $500 million to Neros Technologies, a defense startup specializing in the mass production of inexpensive first-person-view (FPV) drones. The contract aims to supply the Army with the company’s attritable Archer FPV drones, signaling a shift in U.S. defense procurement strategies toward rapid production and scalability.
According to a report by The Wall Street Journal, the agreement underscores the growing importance of low-cost, expendable unmanned systems in modern warfare. The conflict in Ukraine has demonstrated that the ability to rapidly adapt and scale production of inexpensive drones can provide significant tactical advantages over traditional, more exquisite military systems.
Neros Technologies, founded in 2023, has quickly gained traction in the defense sector. In late 2025, the company announced a $75 million Series B funding round led by Sequoia Capital and was selected for the U.S. Army’s Purpose Built Attritable Systems (PBAS) program. The recent $500 million contract further solidifies the company’s role in supplying the military with cost-effective drone capabilities.
The procurement of attritable drones reflects a broader effort by the Department of Defense to rethink acquisition processes and industrial capacity. By investing in startups capable of mass-producing inexpensive systems, the military aims to enhance its agility and responsiveness to evolving battlefield dynamics.
Sources
- Startup Mass-Producing Cheap Killer Drones Wins $500 Million Army Contract — The Wall Street Journal
- Neros Closes $75M Series B Fundraise led by Sequoia Capital, Selected for Army Program — Business Wire
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