SAN FRANCISCO – Spear AI, a Washington-based defense technology startup founded by former U.S. Navy specialists, has raised its first external funding to advance artificial intelligence systems that help military submarines interpret underwater acoustic data. The $2.3 million investment, led by Cortical Ventures and Scare the Bear, will fuel expansion as the company executes a new $6 million Navy contract and pursues commercial applications in critical infrastructure monitoring.
Founded in 2021 by ex-Navy SEAL analyst Michael Hunter and former nuclear submarine commander John McGunnigle, Spear AI addresses a unique challenge in military AI: processing unlabeled passive acoustic data that detects underwater objects—from whales to enemy vessels—without the structured datasets available for conventional AI training. The company’s integrated hardware-software platform includes specialized sensors and data-labeling tools to prepare this complex information for machine learning analysis.
The startup’s breakthrough comes as the Pentagon prioritizes AI solutions for maritime domain awareness. Unlike commercial AI firms working with labeled images or text, Spear AI must contend with raw acoustic signatures that require expert interpretation. “We built the product before securing contracts to prove its viability,” CEO Hunter told Reuters, noting the company’s 40-person team will double to support government and commercial projects, including underwater pipeline and cable monitoring.
With its Navy contract awarded this month, Spear AI joins a growing cohort of defense-tech ventures modernizing military analytics. The company plans to adopt Palantir’s consulting model, offering AI integration services alongside its proprietary systems. As global submarine detection becomes increasingly vital for national security, Spear AI’s technology could provide a critical edge in distinguishing threats from ambient noise—a capability that has eluded conventional AI approaches.
The funding round marks a strategic shift for the bootstrapped startup as it transitions from prototype development to operational deployment. With naval forces worldwide investing heavily in undersea surveillance, Spear AI’s specialized solution positions it at the forefront of defense AI innovation.