excellent news for our strategic autonomy
French President Emmanuel Macron on the transaction’s importance for the technological superiority of France’s armed forces in AI‑enabled defense systems.
Client opportunity
Bpifrance, the French public investment bank that supports companies through financing, guarantees, equity investments and export support at all stages of their development, is owned by the French state and the Caisse des Dépôts group. It plays a key role in implementing France’s industrial, innovation and strategic sovereignty policies.
We advised Bpifrance and Future French Champions (a joint venture between Qatar Investment Authority and Bpifrance) on their strategic investment, alongside Dassault Aviation, in Harmattan AI, a next-generation defense company developing autonomous, scalable and attributable defense systems powered by AI.
The US$200 million Series B funding round values Harmattan AI at approximately US$1.6 billion, making it the first French defense sector unicorn. Dassault Aviation led the transaction as part of a strategic partnership aimed at accelerating the integration of controlled autonomy and AI technologies into combat aviation systems.
Our approach
Drawing on the Firm’s deep experience across M&A, Tax, CFIUS and national security in defense related sectors, a cross-practice team of lawyers from our Paris, New York and Washington, DC offices guided Bpifrance and Future French Champions through this transformative, strategic defense investment.
Acting for Bpifrance and Future French Champions required the Firm to deploy a tailored approach to structure a complex, cross-border investment by public and sovereign investors (including Qatar Investment Authority) in a highly sensitive setor, while navigating stringent regulatory, governance and national security considerations.
Outcome
The involvement of Bpifrance and strategic state backed partners ensures that critical capabilities remain anchored within the French industrial and defense ecosystem, reinforcing national autonomy and resilience in wartime, demonstrating that advanced defense capabilities can be developed at venture scale domestically, and reducing reliance on foreign suppliers.
French President Emmanuel Macron publicly emphasized the transaction’s importance for France’s sovereignty, military strength and economy. He described the investment and partnership as “excellent news for our strategic autonomy,” highlighting that it strengthens the technological superiority of France’s armed forces in AI enabled defense systems, particularly autonomous combat drones. He also characterized the partnership between Dassault Aviation and Harmattan AI as “essential” for France’s defense and industrial future, while celebrating Harmattan AI’s emergence as a the first French defense unicorn.
