California-based artificial intelligence startup Skylark Labs is reportedly in advanced discussions to raise between $100 million and $150 million in a new funding round that could value the company at more than $1 billion, positioning it to join the growing list of AI unicorns.
The company, which develops AI-powered autonomous systems for defense, border security, and public safety, plans to use the fresh capital to expand its global workforce, accelerate product development, and strengthen its autonomous defense technology platform.
Funding Round Could Propel Skylark Labs into the Unicorn Club
According to reports, nearly 70% of the proposed funding commitments have already been secured, with participation expected from several global investors.
The funding is expected to support Skylark Labs’ next phase of growth as governments and defense agencies worldwide continue increasing investments in artificial intelligence, autonomous systems, and intelligent surveillance technologies.
If completed, the transaction would value the company at over $1 billion, making it one of the latest AI-focused startups to achieve unicorn status.
Building AI for Defense and Public Safety
Founded by Dr. Amarjot Singh, Skylark Labs develops Physical AI solutions designed for deployment on edge devices, enabling autonomous platforms such as:
- Drones
- Autonomous ground vehicles
- Robots
- Smart surveillance systems
- Defense equipment
The company’s proprietary AI platform enables machines to learn and execute complex tasks directly in the field without relying on continuous cloud connectivity.
One of its key differentiators is its ability to train AI models in approximately 15 minutes, significantly reducing deployment time compared to traditional AI systems that may require weeks or months of model development.
This capability is particularly valuable for mission-critical applications where rapid adaptation and real-time decision-making are essential.
Supporting Defense Forces in India and Overseas
Skylark Labs has built a strong presence in the defense sector by working with multiple security organizations.
Its reported customer base includes:
- Indian Army
- Indian Navy
- Indian Air Force
- Border Security Force (BSF)
- U.S. Air Force
The company focuses on data sovereignty, allowing defense organizations to train AI models locally without transferring sensitive operational data outside secure environments.
This approach helps address one of the most critical requirements for military and government deployments—maintaining complete control over classified information while leveraging advanced AI capabilities.
Expansion Plans Across India and Global Markets
The proposed funding will support a significant expansion of Skylark Labs’ engineering and operational teams.
The company plans to recruit approximately 100 additional employees across multiple locations, including:
- Pune
- Navi Mumbai
- Delhi
- Menlo Park (California)
- Indiana
- Texas
- Abu Dhabi
The additional talent will support the development of next-generation autonomous technologies, including advanced mine detection systems, intelligent surveillance solutions, and AI-powered defense platforms.
AI Innovation at the Core of Growth
Artificial Intelligence continues to reshape modern defense capabilities, with governments increasingly investing in autonomous technologies that improve operational efficiency, situational awareness, and decision-making.
Skylark Labs’ Physical AI platform is designed to enable autonomous systems to operate effectively in dynamic and complex environments, reducing human intervention while improving response times in mission-critical scenarios.
The company’s technology has applications beyond defense, including:
- Critical infrastructure protection
- Public safety
- Smart cities
- Disaster response
- Industrial automation
Revenue Growth Targets
Skylark Labs is also targeting significant business growth alongside its technology expansion.
The company reportedly generated approximately $3.3 million in revenue during FY2025 and is aiming to increase revenue to $11 million in FY2026.
Achieving this target will depend on the successful execution of defense contracts, continued product adoption, and the company’s ability to scale its workforce and operations efficiently.
Growing Demand for Defense AI
The global defense industry is witnessing a surge in demand for AI-powered autonomous systems as governments prioritize national security, border surveillance, and intelligent military technologies.
Rapid advancements in machine learning, robotics, computer vision, and edge computing are enabling startups like Skylark Labs to play an increasingly important role in modern defense ecosystems.
As geopolitical dynamics evolve and defense modernization accelerates, AI-driven technologies are expected to become a critical component of future military operations worldwide.
Looking Ahead
With a potential $150 million funding round and a valuation exceeding $1 billion, Skylark Labs is positioning itself as one of the emerging leaders in defense-focused artificial intelligence.
The new capital is expected to accelerate innovation in autonomous systems, expand global operations, and strengthen the company’s presence across defense and public safety markets.
As AI continues to transform national security and autonomous technologies, Skylark Labs aims to play a significant role in shaping the future of intelligent defense solutions.
MS Dhoni Invests in SolarSquare as Rooftop Solar Startup Raises $53 Million Series C Funding
Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.