BAE Systems invests in AI start-up Oxford Dynamics

BAE Systems has taken an equity stake in Oxford Dynamics, a UK deep-tech start-up specialising in artificial intelligence and robotics, to accelerate the development of advanced defence technologies, according to a press release.

The move is part of BAE Systems’ strategy to identify and integrate emerging capabilities across all operational domains, air, land, sea, space and cyber. The initial phase will embed Oxford Dynamics’ AI technology into BAE Systems’ Prophesea platform, a digital tool designed to maintain the operational readiness of critical assets such as warships, armoured vehicles and combat aircraft.

Andrea Thompson, Group Managing Director of BAE Systems’ Digital Intelligence business, said: “The landscape of warfare is rapidly evolving and embracing emerging technology is vital to keeping the UK safe. By working with companies such as Oxford Dynamics, we can help ensure that the nation is ready to unlock the advantages that innovation brings and help strengthen the UK’s sovereign defence and security landscape.”

Founded in 2020 and based in Oxfordshire, Oxford Dynamics develops autonomous systems that use AI to interpret data, coordinate actions and make real-time decisions. Its technology is intended to enhance mission planning, threat response and operational precision in complex environments.

Dr Edward Jackson of Oxford Dynamics said: “This collaboration embodies the UK Government’s Strategic Defence Review’s call to action: accelerate innovation, deliver sovereign capability and build a more integrated and lethal force. Our shared mission at Oxford Dynamics is to bring trusted AI to the front line and working with BAE Systems gives us the platform to quickly scale our technology into systems that will make a real difference to our armed forces.”

BAE Systems said the partnership would support the integration of Oxford Dynamics’ capabilities across its broader portfolio, enabling sovereign AI-enabled systems for rapid decision-making, operational autonomy and resilience in contested environments. The investment will also help Oxford Dynamics expand its operations, contributing to UK defence industry growth and skilled job creation.