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BAE Systems to Build on AI Pedigree Through Investment in UK Start-up Oxford Dynamics
August 8, 2025 | BAE SystemsEstimated reading time: 2 minutes
BAE Systems has made a strategic investment in Oxford Dynamics, a UK-based deep-tech start-up specialising in artificial intelligence (AI) and robotics, as part of its ongoing drive to identify and harness innovative technologies for rapid deployment.
The collaboration will see BAE Systems combine its defence and security knowledge with Oxford Dynamics’ AI driven data expertise to explore ways to deliver next generation advantages to the UK and its allies across all domains of the modern battlespace; air, land, sea, space and cyber.
The first stage of this work will embed the Oxfordshire based company’s AI technology into BAE Systems’ Prophesea platform—a digital solution that enables defence organisations to maintain operational readiness of critical assets, such as warships, armoured vehicles and combat aircraft.
“The landscape of warfare is rapidly evolving and embracing emerging technology is vital to keeping the UK safe. By working with companies such as Oxford Dynamics, we can help ensure that the nation is ready to unlock the advantages that innovation brings and help strengthen the UK’s sovereign defence and security landscape,” said Andrea Thompson, Group Managing Director of BAE Systems’ Digital Intelligence business.
Oxford Dynamics, founded in 2020, develops intelligent autonomous systems that collaborate to interpret data, coordinate action and make real-time decisions. Its technology is designed to help defence and security organisations to improve mission planning and respond to threats faster, with greater precision and in increasingly complex environments.
“This collaboration embodies the UK Government’s Strategic Defence Review’s call to action: accelerate innovation, deliver sovereign capability and build a more integrated and lethal force."
“Our shared mission at Oxford Dynamics is to bring trusted AI to the front line and working with BAE Systems gives us the platform to quickly scale our technology into systems that will make a real difference to our armed forces,” said Dr Edward Jackson, Oxford Dynamics.
In the longer term, the collaboration will enable the integration of Oxford Dynamics’ capabilities across BAE Systems’ extensive portfolio. This will deliver sovereign, AI-enabled real time capability, empowering UK and allied forces with rapid decision-making support, operational autonomy and greater resilience in contested environments.
The equity stake BAE Systems has taken in Oxford Dynamics, which will remain an independent entity, will support its next phase of growth; contributing to the UK Government’s ambition to bolster the nation’s defence industry and create skilled jobs.
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