Media coverage of ongoing wars mostly shows drones that fly. However, there is a large ecosystem of drones that operate in the ocean, rather than in the air. Within this category of drones, Unmanned Surface Vehicles (USVs) have gotten some publicity. Startups with high valuations, such as Anduril, Saronic, and Saildrone, recently received millions in funding to produce USVs.
Below sea level lie Unmanned Underwater Vehicles (UUVs). UUVs are typically used for undersea surveys or infrastructure missions — tasks difficult for any vessel operating above the water. Using UUVs also limits risks associated with sending human divers on undersea missions.
Despite different use cases, both USVs and UUVs receive large amounts of government funding. Like most defense systems, contracts typically go to defense primes. But in recent years, the United States government allocated more UUV contracts to smaller companies and startups.
Here are five companies that are winning key UUV-related contracts.
1. HII
UUVs aren't a new technology. HII, the United States' largest military shipbuilder, has been developing them for the past twenty years. Established nearly 135 years ago, the company is most well known for building large naval ships and submarines. In the past twenty years, they expanded into unmanned systems. This includes its Odyssey autonomy suite, ROMULUS USVs, and REMUS UUVs. Despite HII's focus on larger vessels, it's one of the most globally distributed UUV manufacturers.
Last year, HII received $31.9 million in funding from the U.S. Navy to build Lionfish small UUVs, designed for underwater counter-mine and undersea survey missions. The company also completed its 750th REMUS UUV, delivering it to the German Navy. HII also signed agreements with companies from the United Kingdom, including an MOU to integrate REMUS UUVs with submarine weapon handling systems.
2. General Dynamics
Similar to HII, General Dynamics' Mission Systems segment isn't known for UUV production. Instead, it focuses on communications networks such as radio and satellite technology. The segment shifted to the maritime sector in 2016, when General Dynamics acquired UUV manufacturer Bluefin Robotics. After integrating Bluefin's products, Mission Systems designed multiple UUVs for intelligence gathering and mine hunting missions.
In recent years, Mission Systems received substantial defense-specific funding for UUVs. Most significantly, the U.S. Navy awarded the company a $15.9 million contract to develop MEDUSA, a UUV with offensive mine warfare capabilities. The system is designed to be launched from submarines. General Dynamics received the contract in 2024 and tested a rapid prototype this January.
3. Teledyne Technologies
One problem that all unmanned systems face is endurance. Gliders, a type of UUV, excel on this front. They can travel long distances without servicing. Teledyne Technologies, an industrial company, manufactures prominent gliders like the Slocum glider and Gavia AUV. Most of Teledyne's products are used for oceanography, such as gathering data under harsh weather conditions.
Teledyne also received a large number of defense contracts. Out of 1,275 Slocum gliders, NATO navies purchased over 600. In 2023, the U.S. Navy awarded Teledyne the Littoral Battlespace Sensing-Glider program, valued at $39.2 million. This year, Teledyne signed an agreement with Sweden's Defense Material Administration for Gavia AUVs, valued at about $17 million.
4. Jaia Robotics
Founded in 2020, Jaia Robotics is a startup building robots aiming to democratize aquatic data collection. Each robot, called a JaiaBot, operates in a pod that conducts data collection dives. JaiaBots are deployable from the surf zone, riverbanks, docks, and watercraft. Compared to products from the primes, JaiaBots are affordable — priced at about $10,000 each — and allow for swarm-based deployment.
In total, Jaia raised $4.55 million across four rounds, including a $1.8 million Series A. In 2023, the startup obtained an SBIR Phase II grant from the NOAA to develop JaiaBots capable of sea-air boundary data collection. This February, the Naval Supply Fleet Logistics Center announced a potential purchase of JaiaBots for autonomous ocean floor mapping.
5. Vatn Systems
Vatn Systems imagines UUVs working together to accomplish a variety of tasks. Their flagship products include the Skelmir S6 and Skelmir S12, designed for sensor deployment and electronic warfare, with swarming capabilities. The startup's key differentiator is their advanced navigation system. This allows UUVs to perform in GPS, vision, and communications-compromised environments.
By April 2025, government customers had already bought 12 of the startup's vehicles. Shortly after, in December, Vatn Systems raised $60 million in Series A funding. Along with venture funding, Vatn also secured multiple U.S. military partnerships. The company was awarded $20 million in government contracts and engaged in active exercises with the U.S. Navy and Marine Corps.