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Capital · Venture

Gallatin AI's $50 million raise far outpaces its federal dollars on record

USAspending records about $2.3 million to the military logistics software maker, whose chief executive said in March it wasn't asking the Army to fund basic R&D.

Gallatin AI, an El Segundo, Calif., maker of AI logistics software for the U.S. military, announced a $50 million Series A on Thursday. New and existing investors including 8VC and Silent Ventures backed the round. The company plans to grow its engineering team, speed product development and broaden its AI-enabled sustainment tools.1

Gallatin AI has raised $70 million; USAspending records $2.3 million

Company-reported venture funding and USAspending transaction totals, all years, shown separately as different financial bases

$50MSeries A financing announced Oct. 8, 2026
$70Mtotal raised, counting a 2024 seed round, the company says
$2,270,849recorded to Gallatin in USAspending across five transactions, all years

Four Gallatin announcements of Army, Air Force and Defense Innovation Unit awards disclosed no dollar values.

Source: Gallatin AI releases, Sept. 16, 2025 to Oct. 8, 2026; USAspending recipient profile. Data as of Oct. 8, 2026.

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Gallatin says the round brings its total raised to $70 million, counting a 2024 seed.1 Federal money on record is far smaller: about $2.3 million across five USAspending transactions.6 "Venture capital has allowed us to build Navigator to commercial standards before entering the government competition process," chief executive Woody Glier said in March.3

Gallatin's award announcements include two Small Business Innovation Research (SBIR) contracts, an other transaction agreement with the Army's III Armored Corps and a Defense Innovation Unit contract. None of those four announcements disclosed a dollar value.2–5

The Air Force SBIR, a Phase I announced in September 2025, covers a six-month generative AI effort for humanitarian assistance and disaster relief logistics.2 In March, Gallatin announced an Army Applications Laboratory contract under PORTAL, a Direct to Phase II SBIR, to develop Navigator and deliver a functional logistics planning prototype.3

The III Corps agreement, announced in June, is to deploy and refine Navigator in support of the corps' exercises and operational planning. Deliverables include a logistics common operating picture and predictive consumption algorithms across all classes of supply.4 In July, Gallatin announced the Defense Innovation Unit contract to bring AI-driven sustainment planning to U.S. Army Europe and Africa, with Scale AI as a named teammate.5

PORTAL and the III Corps agreement each run 18 months. Under PORTAL, Gallatin will work with operational Army units to validate Navigator; the III Corps work will be validated across live exercise events.3–4 A follow-on production award would show Army spending on Navigator moving past these awards.

Sources (6)
  1. Gallatin AI: Gallatin AI Announces $50 Million Series A to Accelerate Transformation of Military Logistics (Oct. 8, 2026) www.prnewswire.com
  2. Gallatin AI: Gallatin AI Awarded SBIR for Logistics Decision Support (Sept. 16, 2025) www.gallatin.ai
  3. Gallatin AI: Gallatin AI Awarded Army PORTAL Contract to Bring Predictive Logistics to Contested Operations (March 11, 2026) www.gallatin.ai
  4. Gallatin AI: III Armored Corps Selects Navigator for AI-Driven Sustainment (June 11, 2026) www.gallatin.ai
  5. Gallatin AI: Gallatin AI Awarded DIU Joint Sustainment Decision Tool (July 15, 2026) www.gallatin.ai
  6. USAspending: Gallatin AI, Inc. recipient profile, all years api.usaspending.gov
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Capital · Drones

Badland Batteries' Navy-backed drone cell plant opens after its 2025 production goal passed

The Fargo, N.D., plant will make lithium-ion cells for unmanned systems. Its cell timetable has moved since 2024.

Badland Batteries, a subsidiary of drone battery maker Packet Digital, opened its battery cell plant in Fargo, N.D., on Oct. 8.1, 4–5 The facility will manufacture lithium-ion cells, from electrode manufacturing through formation and aging, and Badland will be able to assemble packs at its facility a mile away.1, 6 The company says it has the capacity to increase production based on industry growth.1

Badland's Fargo cell schedule moved before the Oct. 8 plant opening

Company-stated cell goals and targets by date stated, then the opening; Fargo, N.D., drone battery cell plant

End of 2025April 2024 goal: make battery cells for customers
2026April 2026: plant will begin production of U.S.-made battery cells
OctoberSept. 23, 2026: set to begin production
Oct. 8Badland celebrated the plant's opening

The Oct. 8 releases from Badland and Sen. John Hoeven say the plant will manufacture cells; neither says production has begun or names a customer.

Badland Batteries releases, April 18, 2024, and April 8, Sept. 23 and Oct. 8, 2026; Sen. John Hoeven release, Oct. 8, 2026.

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Badland called the opening the completion of the building.1 When Packet Digital announced the factory in April 2024, it aimed to make cells for customers by the end of 2025.5 In April 2026, Packet Digital said cell production would begin that year; on Sept. 23, Badland put the start in October.2, 4 The company's Oct. 8 release says the plant will manufacture cells, without saying production has begun or naming a customer.1

North Dakota's Clean Sustainable Energy Authority made a $17.4 million award toward the plant.5 Chief Executive Terri Zimmerman said the company invested nearly $100 million.1–2

Navy money runs through the project. After a Navy contract phase covering plant design and construction, the company announced in May that it was awarded $9.8 million for Phase 3.3 In April it announced a $27 million Small Business Innovation Research Phase III contract from the Naval Air Warfare Center Aircraft Division to scale cell manufacturing.4

Phase 3 focuses on scaling volumes, qualifying production equipment and ramping throughput "to meet Navy requirements."3 Customer deliveries of Fargo-made cells, and progress toward the 2028 maximum-capacity goal set in 2024, will show whether the opening becomes output.5

Correction, November 4, 2026: An earlier version of this brief described the plant as an 80,000-square-foot pouch-cell facility, reported the company's statements that it could produce more than 15,000 cells a day and that more than 90% of the U.S. drone battery supply chain relies on Chinese-made cells, and cited Sen. John Hoeven's figure of $52.6 million in Navy funding. The company's current announcements do not include those details and Sen. Hoeven's release is no longer available, so we removed them.

Sources (6)
  1. Badland Batteries: Badland Batteries Cuts Ribbon at Battery Cell Manufacturing Facility (Oct. 8, 2026) www.badlandbatteries.com
  2. Badland Batteries: House Majority Leader Steve Scalise and Rep. Julie Fedorchak tour battery cell manufacturing facility (Sept. 23, 2026) www.badlandbatteries.com
  3. Badland Batteries: Packet Digital Awarded $9.8 million U.S. Navy Contract to Scale Battery Cell Production (May 5, 2026) www.badlandbatteries.com
  4. Badland Batteries: Packet Digital awarded $27 million Phase III SBIR contract to bolster domestic battery manufacturing (April 8, 2026) www.badlandbatteries.com
  5. Badland Batteries: Packet Digital to build battery cell factory in North Dakota (April 18, 2024) www.badlandbatteries.com
  6. Badland Batteries: Battery Cell Plant www.badlandbatteries.com

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Capital · Space ISR

Kapta Space raises $24 million, saying it secured classified moving target indication contracts

Washington Harbour Partners led the Series A. Kapta's announcement named no buyer or value for the contracts.

Kapta Space, a Seattle developer of spaceborne radar payloads, announced the $24 million round on Friday, Oct. 9, with Bison Ventures as co-lead. Kapta says the money will help it scale production to support multiple classified moving target indication (MTI) contracts it secured earlier this year. The round brings its total funding to $30 million.1

Kapta says the funding will help it scale production to support multiple classified MTI contracts

Kapta Space announced a $24 million Series A led by Washington Harbour Partners and co-led by Bison Ventures

funding$24 million Series A financing
Kaptadeveloper of next-generation spaceborne radar payloads
Kaptadeveloper of next-generation spaceborne radar payloads
multiple classified moving target indication (MTI) contractsthe company secured earlier this year

After the Series A, Kapta will focus on qualifying its payload for flight, expanding manufacturing capacity and preparing for its first orbital demonstration

Source: Kapta Space release via PR Newswire, Oct. 9, 2026. Data as of Oct. 10, 2026.

Sources
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The technology it wants to produce has a public research trail. In July 2023, DARPA funded a $1.7 million Direct to Phase II Small Business Innovation Research contract for a steerable X-band metasurface antenna.2–3 The award's abstract set out to develop spaceborne radar imaging and MTI sensor technology.2 USAspending lists the work, which ended in July 2025, as a "Space Metamaterial Electronically Scanned Array," matching the name of Kapta's MESA architecture.1, 3

Conventional radar payloads, Kapta says, have been too costly and complex to deploy across large satellite constellations. MESA is designed to deliver advanced radar performance at significantly lower cost, power and manufacturing complexity than traditional active electronically scanned arrays, the company says.1

Washington Harbour is a Washington, D.C., private investment firm whose investments run from growth equity to control buyouts. Mina Faltas, its founder and chief executive, said the firm believes MESA's combination of performance, cost and scalability will make Kapta "a foundational supplier to the next generation of U.S. and allied space architectures."1

Kapta wants to scale production for contracts it says it has secured while its payload still has to be qualified for flight. The milestone to watch is its first orbital demonstration, which Kapta is preparing for but didn't date in the announcement.1

Sources (3)
  1. Kapta Space: Kapta Space Raises $24M Series A, Secures Multiple Classified MTI Contracts (Oct. 9, 2026) www.prnewswire.com
  2. SBIR.gov: Steerable X-Band Metasurface Antenna for Spaceborne Radar, Kapta Space Corp. (2023) www.sbir.gov
  3. USAspending: Contract FA237723CB002, Space Metamaterial Electronically Scanned Array api.usaspending.gov