A consortium of NATO allies has confirmed the first tranche of companies awarded funding from its €1 billion ($1.1 billion) innovation fund, established to enhance the alliance’s defence capabilities with cutting-edge technologies.

The NATO Innovation Fund (NIF) was launched in the summer of 2022, following Russia’s invasion of Ukraine, with the goal of investing in technologies that bolster NATO’s defence, security, and resilience.

The fund is supported by 24 of NATO’s 32 member states, including Finland and Sweden, which joined the alliance earlier this year.

On Tuesday, NIF announced its direct investments in four European technology companies. These investments are intended to address key challenges in defence and security.

• Fractile: A London-based computer chipmaker focused on optimizing large language models (LLMs) like those powering AI systems such as ChatGPT. Fractile’s technology aims to enhance the speed and efficiency of these models, providing critical improvements for various applications in defence and beyond.
• ARX Robotics: A German company specializing in the design of unmanned robots. These robots are capable of performing a range of functions, from heavy lifting to surveillance, thus offering versatile solutions for military and security operations.
• iCOMAT: A British manufacturer known for producing lightweight materials for vehicles. These materials can significantly reduce the weight of military vehicles, enhancing their performance and fuel efficiency.
• Space Forge: A Welsh startup leveraging the unique conditions of space, such as microgravity and vacuum environments, to manufacture high-quality semiconductors in orbit. This innovative approach could revolutionize the production of critical components used in advanced defence systems.

The NIF has partnered with several venture capital firms, including Alpine Space Ventures, OTB Ventures, Join Capital, and Vsquared Ventures.

The NIF’s investments are part of a broader strategy to integrate advanced technologies into NATO’s defence infrastructure.

The initial investments announced by the NIF reflect a commitment to leveraging the latest advancements in technology to address emerging threats and challenges.