Ukraine suspends orders for Helsing's AI drones following battlefield test setbacks

Bloomberg reported the information.

Helsing's flagship HX-2 strike drone experienced launch failures and lacked promised artificial intelligence features during evaluations by Ukraine's 14th Regiment, an unmanned aerial systems unit, according to a November 20 internal presentation prepared by the German Defense Ministry.

The document, compiled by a unit reporting to General Gunter Schneider, head of the Armed Forces Division at the German Defense Ministry, revealed that the HX-2—an X-wing drone combining fixed wings with quadrocopter propellers—had trouble taking off during tests. The model was supposed to include AI components designed to help it navigate without a pilot, but those tools were missing, the presentation stated.

Five people in Germany and Ukraine familiar with the drones' battlefield performance told Bloomberg that Helsing's systems were vulnerable to electronic jamming near the front lines, which severed connections with human operators. The sources requested anonymity because the information is classified.

The setbacks have dampened demand for the drones, which are funded by the German military. Germany does not plan a follow-up order until Ukraine expresses renewed interest, according to the presentation and two sources.

Helsing rejected many of Bloomberg's findings in a statement, saying the company was unaware of the presentation and disputing claims of high failure rates during takeoffs. "The hit rate of the first flights, which was officially documented, is encouraging," Helsing said, adding that it's premature to draw conclusions from the drone's frontline performance. "We are confident that HX-2's test performance will translate well into high hit rates on the battlefield, too, including under electronic warfare conditions."

The company also noted that several Ukrainian military groups have expressed interest in the drone.

The Ukrainian Defense Ministry declined to comment on classified information, while a German Defense Ministry spokeswoman said its management had not reviewed or approved the report.

Russia's 2022 invasion of Ukraine has transformed the defense industry landscape, with drones becoming the war's most critical weapon. Helsing, founded in 2021 to integrate AI into European military systems, has been a major beneficiary of this shift. Initially backed by Spotify founder Daniel Ek's fund Prima Materia, the company pivoted to building AI-native hardware as European attitudes toward defense investment changed dramatically.

In June, major venture capital firms including General Catalyst, Lightspeed Ventures, and Accel participated in a funding round that valued Helsing at €12 billion ($14 billion). "In the next few years, Europe is going to lead even over the U.S. in terms of the deployment of real AI-enabled autonomous systems," Torsten Reil, Helsing's co-CEO, said at the Bloomberg Tech Summit in London last October.

The HX-2, announced in December 2024, is a maneuverable missile capable of striking targets up to 100 kilometers away. Its performance is critical as Helsing devotes more resources to developing air and underwater devices in an increasingly competitive market.

According to the November presentation, both Helsing models intended for Ukraine were supposed to include three AI components—terminal guidance, midcourse guidance, and visual target acquisition—but didn't have all features installed. The presentation indicated that only 25% of HX-2 drones successfully launched during front-line tests by the 14th Regiment. Three sources said launches were affected by mechanical problems with the catapult system.

Helsing disputed these figures and noted that in October tests with German and British militaries, its HX-2 drones hit nearly 100% of their targets, outperforming competitor Stark Defence.

Helsing signed a 2024 deal to provide 4,000 strike drones produced with a Ukrainian company. It had delivered about half of those HF-1 models, with roughly 40% remaining in Ukraine's inventory, according to the presentation. The parties were converting the contract to supply HX-2 drones instead.

The HF-1, made from plywood, had faced criticism in Ukraine for being too expensive and ineffective, Bloomberg previously reported. Last February, Helsing announced plans to ship an additional 6,000 HX-2 drones to Ukraine, though the German Defense Ministry said at the time it hadn't committed to such an order.

Battlefield failures during testing are not uncommon in the rapidly evolving drone warfare environment. Other foreign drone makers have faced similar challenges, including Anduril, whose Altius and Ghost drones struggled early in the war when most drones had effective hit rates as low as 10%.

A German Defense Ministry spokeswoman emphasized that "experimental and test series are designed to allow companies to test their systems under various conditions," adding that regular developments occur due to the industry's short innovation cycles.