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Israeli AI drone company lands $8.8m Pentagon contract

The United States Department of Defense has awarded a US$8.8 million contract to Xtend, an Israeli AI drone company.

The contract is for producing and deploying its precision strike indoor and outdoor (PSIO) small unmanned aerial systems.

Production will occur in the US, with initial deliveries anticipated in early 2025.

The PSIO system is the first drone approved by the Pentagon for both indoor and outdoor deployment as a loitering munition platform.

It is designed for urban and open-field operations, using AI for precise strikes with minimal human involvement.

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