This AI-Based Defense Company Secured A US Government Contract – So, Why Did The Stock Reverse Pre-Market Gains?

The company said it secured a $1 million subcontract to supply AI processing systems to the U.S. Government.

• Safe Pro will deliver advanced AI solutions for defense, security, and situational awareness applications.
• Development and low-rate initial production of Safe Pro’s systems were funded by Ondas and Unusual Machines.
• The company recently partnered with Lantronix to develop chipsets for Qualcomm-based drone and autonomous vehicle platforms.

Shares of Safe Pro Group (SPAI) reversed pre-market gains to trade 6% lower on Friday, after the company said it secured a $1 million subcontract to supply AI processing systems to the U.S. Government through a prime contractor.

According to the contract, Safe Pro will deliver advanced artificial intelligence solutions for defense, security, and situational awareness applications.

Development and low-rate initial production of the systems were funded by U.S.-based firms, including Ondas (ONDS) and Unusual Machines (UMAC).

How Did Stocktwits Users React?

Retail sentiment for SPAI on Stocktwits turned ‘bullish’ from ‘neutral,’ but chatter was mixed.

Following the contract announcement, one user called the news “bullish” and said they were long on the stock, while another chose to remain on the sidelines, arguing that the contract size was too small to be meaningful.

Partnerships With Lantronix And Ondas In Last Two Months

The company recently signed a series of partnerships. Last month, Safe Pro signed a master services agreement and an MoU with Lantronix (LTRX) to jointly develop embeddable chipsets for Qualcomm-based drone and autonomous vehicle platforms.

In December, Safe Pro and Ondas completed a Middle East pilot program using AI to support demining efforts, validating Safe Pro Object Threat Detection’s (SPOTD) ability to detect explosive threats in aerial imagery. The company had also filed a patent application for its AI-powered computer vision technology.

Earlier that month, the company formed SPAI Ventures subsidiary to focus on strategic investments, including collaborations with Ukrainian and other international technology developers to support the growth of its SPOTD AI image analysis platform and ballistic protection products.

Year-to-date, the stock has shed around 6%.

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