Magnet Defense Buys ATG, Forging an AI Powerhouse for Naval Warfare

MIAMI, Jan. 9, 2026 – In a significant move to consolidate power in the rapidly evolving defense technology landscape, Magnet Defense LLC announced today it has entered into a definitive agreement to acquire Advanced Technology Group (ATG). The acquisition promises to accelerate the development of AI-driven autonomous maritime systems, positioning the Miami-based firm as a formidable, vertically integrated player in the national security sector.

The deal will see ATG's sophisticated, open-architecture artificial intelligence solutions integrated into Magnet Defense's core platforms. This strategic fusion is designed to enhance what the company calls the "brains and backbone" of its autonomous naval vessels, specifically by incorporating ATG's technology into the DefendAI battlespace management suite. For the U.S. and its allies, the move signals a potential leap forward in deploying smarter, more connected, and more autonomous naval capabilities.

A Strategic Play for End-to-End Autonomy

This acquisition is not an isolated event but the latest chapter in Magnet Defense's aggressive strategy to build an end-to-end powerhouse for autonomous defense. The company, co-founded by Terran Orbital's Marc Bell, only recently completed its acquisition of Metal Shark, an established designer and builder of military-grade maritime platforms.

By first securing advanced manufacturing and shipbuilding capabilities through the Metal Shark deal and now acquiring a premier AI and systems integration firm in ATG, Magnet Defense is assembling all the necessary components under one roof. This vertical integration—from the physical hull of an unmanned surface vessel (USV) to the complex AI governing its mission—is a deliberate strategy to reduce friction, speed up innovation, and deliver fully realized solutions directly to the military.

Industry analysts note that this two-pronged approach—securing both the hardware and the software—could give Magnet Defense a significant competitive edge. While large defense primes have immense resources, they often navigate complex supply chains and partnerships. A more integrated model could allow for greater agility and a more cohesive design philosophy, which is critical when developing systems where hardware and software are deeply intertwined.

The Brains of the Operation: Unpacking the Technology

At the heart of the acquisition is ATG's expertise in creating interoperable AI systems. The company is renowned for its work with the U.S. Department of War, developing advanced Command and Control (C2) and AI capabilities across air, space, sea, and land. The key to their technology lies in an open-architecture approach.

Central to this is ATG's Autonomy Exchange for Interoperable Modularity (AXIOM), an AI-enabled software stack. AXIOM is designed to act as a universal translator, allowing new autonomous platforms to seamlessly "plug in" to the military's vast and often disparate array of existing command systems. For decades, a primary challenge for the Pentagon has been getting systems built by different contractors in different eras to communicate effectively.

This push for interoperability is the cornerstone of the Pentagon's vision for Joint All-Domain Command and Control (JADC2), a concept aimed at connecting sensors and shooters from every military branch into a single, cohesive network. ATG's AXIOM stack, with its set of proven mission modules, is purpose-built to solve this exact problem. By integrating AXIOM, Magnet Defense isn't just making its ships smarter; it's making them better-integrated members of a larger military network, capable of sharing data and coordinating actions with aircraft, satellites, and ground forces in real-time.

Reshaping the Competitive Seas

The acquisition sends ripples across the defense industry, highlighting a broader trend of private, agile technology firms driving critical national security innovation. Magnet Defense's move positions it to compete more directly with established giants like Lockheed Martin, Northrop Grumman, and Raytheon, who are all heavily investing in autonomous systems.

However, the strategy appears different. Rather than incrementally adding AI features to existing programs, Magnet Defense is building its identity around a foundation of AI and autonomy. This approach reflects the increasing reliance of the Department of War on commercial-style innovation to outpace adversaries. The Pentagon has recognized that it can no longer develop all critical technology in-house and is actively fostering an ecosystem of private partners.

This consolidation also reflects the high stakes and capital-intensive nature of the defense tech market. For specialized firms like ATG, being acquired by a well-capitalized and strategically aligned partner like Magnet Defense provides the resources and platform to scale their technology and amplify its impact. For Magnet Defense, it's a calculated purchase of critical talent and proven technology that could have taken years to develop internally.

From Code to Combat: The Human Element of Integration

While the technological synergy is clear, both companies understand that successful integration is as much about people as it is about software. Merging distinct AI platforms and corporate cultures is fraught with challenges, from aligning technical roadmaps to ensuring robust cybersecurity across newly combined systems.

This is where ATG's unique workforce becomes a critical asset. The company's team is not just composed of software engineers but also "mission architects" and "AI integrators." These roles are crucial for bridging the gap between cutting-edge technology and the practical, often gritty realities of military operations. Mission architects ensure the technology is designed to solve a real-world problem for a soldier or sailor, while AI integrators specialize in the complex task of weaving these systems into existing military infrastructure.

Magnet Defense has confirmed that ATG's leadership and employees will remain, continuing to support their existing government customers while contributing to the expanded mission of the combined entity. This ensures continuity for vital defense programs and injects ATG's deep-seated domain expertise directly into the core of Magnet Defense's development process. This human element will be pivotal in navigating the technical and operational hurdles of creating a truly unified and effective autonomous defense ecosystem. The ultimate goal is to field integrated systems that provide the U.S. and its allies with a decisive technological advantage in an increasingly complex and contested world.