Andreessen Horowitz (a16z) is doubling down on defense technology through its American Dynamism fund, leading a Series A investment in Ulysses, a San Francisco-based company developing autonomous underwater and surface vehicles for the U.S. Navy and commercial maritime operations. This investment marks a strategic pivot in how venture capital is funding the intersection of commercial innovation and national security, with major defense contractors like Booz Allen Hamilton now co-investing alongside traditional tech VCs .

Why Is a16z Betting on Undersea Robotics Now?

The timing reflects a broader recognition that the Navy needs affordable, scalable autonomous systems that can operate in complex maritime environments. Traditional defense procurement moves slowly and expensively, but venture-backed startups can iterate faster and deliver cutting-edge technology at a fraction of the cost. Ulysses combines low-cost hardware with advanced onboard computing to enable next-generation autonomy, making it an attractive target for investors focused on modernizing military capabilities .

Booz Allen Hamilton, a major defense contractor, invested in Ulysses as part of the Series A round through its venture capital arm, Booz Allen Ventures. This partnership reflects a January 2025 agreement between Booz Allen and a16z to accelerate the integration of commercial technologies into U.S. government and national security missions. The investment marks Booz Allen Ventures' first entry into the maritime robotics sector, expanding its portfolio beyond space, communications, and artificial intelligence-driven defense capabilities .

"Together, Ulysses and Booz Allen can provide advanced technology solutions for the undersea domain at speed, scale, and cost," said Jennie Brooks, executive vice president at Booz Allen and leader of the firm's Navy-Marine Corps portfolio.

Jennie Brooks, Executive Vice President at Booz Allen Hamilton

What Specific Capabilities Does Ulysses Bring to Naval Operations?

Ulysses develops autonomous surface and underwater vehicles designed for high-volume deployment in complex maritime environments. The company's platforms are engineered for several critical mission areas that the Navy has identified as priorities :

• Mine Countermeasures: Autonomous systems that can detect and neutralize underwater mines without risking human lives.
• Survey Missions: Vehicles capable of mapping ocean floors and gathering environmental data across vast areas more efficiently than traditional methods.
• Multi-Vehicle Swarming: Coordinated autonomous systems that can operate together to accomplish complex tasks at scale.
• High-Risk Environment Operations: Deployment in dangerous or remote maritime zones where human presence is impractical or unsafe.

Beyond military applications, Ulysses' technology serves commercial maritime operations, including environmental monitoring, infrastructure inspection, and search and recovery operations. This dual-use approach is attractive to venture investors because it creates multiple revenue streams and reduces dependence on government contracts .

"We're building autonomous systems that change that equation by orders of magnitude, vehicles that can survey, inspect, and protect our oceans at a scale that's never been possible," said Akhil Voorakkara, co-founder and CEO of Ulysses.

Akhil Voorakkara, Co-founder and CEO of Ulysses

How Is Booz Allen Ventures Expanding Its Defense Tech Portfolio?

Booz Allen Ventures, launched in 2022, has become a significant player in early-stage defense technology investment. The firm raised its capital commitment to $300 million in July 2025 to accelerate investments in emerging tech companies supporting U.S. government missions. This expanded budget reflects growing confidence that venture-backed startups can deliver innovation faster than traditional defense contractors .

Recent investments by Booz Allen Ventures demonstrate the breadth of its defense tech strategy. The firm has backed O-RAN Development Co. to advance AI-native 5G and future 6G wireless networks, Portal Space Systems to strengthen space-based mission capabilities, and Hadean to scale AI-powered wargaming and simulation platforms for military training and readiness. The Ulysses investment adds maritime autonomy to this growing portfolio .

"By backing dual-use, venture-backed startups like Ulysses, we are expanding our portfolio into robotics and autonomy and building capabilities that enable deployment at speed across sea, air and land," noted Brian MacCarthy, managing partner of Booz Allen Ventures.

Brian MacCarthy, Managing Partner of Booz Allen Ventures

What Does This Signal About the Future of Defense Venture Capital?

The Ulysses investment represents a larger trend in which traditional venture capital firms and defense contractors are converging around a shared goal: modernizing military capabilities through commercial innovation. a16z's American Dynamism fund, which led the Series A round, explicitly focuses on strengthening U.S. economic and military competitiveness through technology investment. By partnering with Booz Allen, a16z gains credibility in the defense space while Booz Allen gains access to venture-backed innovation pipelines .

This model differs from traditional defense procurement, where the government contracts directly with established contractors. Instead, venture capital now acts as an intermediary, identifying promising startups, funding their growth, and helping them scale to meet government needs. The result is faster innovation cycles, lower costs, and greater competition in the defense technology market. For investors, it represents a new asset class: dual-use technologies that serve both commercial and military markets, reducing risk while maximizing impact.