AI drone company Skydio announces $3.5 billion investment in technology race

Artificial intelligence-powered drone manufacturer Skydio on Friday announced a $3.5 billion investment to expand its domestic production and supply chain as the technology race against China intensifies.

The investment, unveiled during a press conference with local law enforcement in Fairfax County, Virginia, will be deployed over the next five years to scale U.S.-based manufacturing, develop critical components, and create thousands of jobs. 

“This is going to go squarely into the U.S. drone ecosystem,” Skydio CEO Adam Bry said, adding that the company plans to “5x the size of our own factory” and dedicate roughly $1 billion toward sourcing key components domestically.

The announcement comes amid heightened warnings from U.S. officials about foreign threats to American innovation. 

A memo circulated this week by White House technology adviser Michael Kratsios warned that China has been actively attempting to steal United States advances in AI, raising concerns about supply chain vulnerabilities.

Bry emphasized that the global drone market has been dominated by foreign manufacturers, many based in China.

“It’s just untenable to be dependent on our adversaries for technology this important,” he said. 

A central component of the investment is a new initiative aimed at “onshoring” production of drone parts, including motors, batteries, and microchips. The effort seeks to build a fully domestic supply chain for robotics and AI-enabled systems, reducing reliance on overseas manufacturing hubs. 

“It’s not a mystery that right now, the world-leading manufacturing ecosystem for electronics is in China,” Bry said. “But there’s no law of physics that says it has to be that way.” 

Bry said the investment will create thousands of jobs, primarily in California, where the company is based, but will also look nationally.

Kratsios, who attended the announcement event, called the announcement “a real turning point” for U.S. industrial policy, tying it to broader federal efforts to secure supply chains and strengthen domestic manufacturing. 

“We are going to ensure that the most advanced, most reliable and most trusted systems in the world are built here in the United States,” he said, describing domestic production as a “national security imperative.” 

Drone technology is increasingly linked to broader geopolitical competition with China, particularly as AI-driven systems become integral to military, infrastructure, and public safety operations. 

Skydio drones are already used by U.S. military branches, law enforcement agencies, and infrastructure operators, driving demand for expanded domestic production.

US MILITARY SITES DEPLOY DRONES FOR SECURITY AS RECRUITMENT FLUCTUATES

President Donald Trump has pushed for what he has dubbed “drone dominance,” signing an executive order that seeks to build a strong domestic drone sector. 

Skydio is already part of the administration’s movement, as it secured a record-breaking contract with the Department of War in March, making a $52 million sale of its drones to the agency, the largest small drone procurement from a single manufacturer.

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Skydio to invest $3.5 billion to expand U.S. drone manufacturing

Skydio announced plans to invest $3.5 billion in the United States over the next five years to expand domestic manufacturing and research capabilities. The company said the initiative aims to strengthen supply chains and support long-term growth in the U.S. drone industry.

The investment is expected to create more than 2,000 jobs within Skydio and support over 3,000 additional roles across the domestic supply chain. More than $1 billion of the total funding will be directed to U.S.-based suppliers.

Skydio said it already produces more dual-use drones than any company outside China. The company has delivered over 60,000 systems to more than 3,800 customers, including public safety agencies, U.S. military branches, allied nations and commercial operators.

A central element of the expansion is the SkyForge program. This initiative is designed to support domestic production and reinforce U.S.-based manufacturing capabilities.

The company plans to open a new manufacturing facility that will be five times larger than its current site. This will mark Skydio’s fifth expansion in eight years as it responds to increased demand.

The investment will also support the development of domestic suppliers for critical components. Skydio said it will work with selected partners to co-locate production and provide access to engineering expertise.

Adam Bry, co-founder and Chief Executive Officer of Skydio, said: “U.S. innovation invented the airplane, ramped up manufacturing to win WWII, put a man on the moon, broke the sound barrier, and commercialized space travel.” He added: “Skydio has proven that American companies can compete and win in the civilian drone market against products from our adversaries.”

The company said drones have rapidly evolved into critical infrastructure tools across multiple sectors. Its systems are used in public safety, where aerial capabilities can support faster response times.

Skydio said its technology enables drones to arrive first at incident scenes in a majority of cases. In some situations, operations can be resolved without deploying additional units.

The company said the investment will reinforce domestic manufacturing of electronics and components. It also aims to strengthen secure supply chains that support national resilience.

Skydio said it will continue expanding production capacity to meet demand from public safety, national security and utility sectors. The company added that the initiative reflects a broader effort to position the United States as a leader in autonomous aerial systems.

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