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Firestorm Labs raises $82M to take drone factories into the field

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In a Pacific conflict, the nearest U.S. drone factory is thousands of miles away. Ships and planes carrying parts to the front lines would be vulnerable to attack. Defense startup Firestorm Labs thinks the answer is a drone factory that fits inside a shipping container.

The company announced on Wednesday that it has raised $82 million in Series B funding led by Washington Harbour Partners with participation from NEA, Ondas, In-Q-Tel, Lockheed Martin, Booz Allen Ventures, Geodesic, Motley Fool Ventures, and others, bringing its total funding to $153 million.

Firestorm didn’t start out as a factory company. It began as a drone maker, but when customers started asking to move production closer to the front lines, the founders saw an opportunity to pivot.

Firestorm Labs CEO Dan Magy is a serial defense tech entrepreneur. His co-founders bring complementary backgrounds: Chad McCoy is a career special operations veteran, and CTO Ian Muceus holds over a dozen patents in 3D printing.

The San Diego-based startup makes xCell, a containerized manufacturing platform that can print drone systems in under 24 hours. The drones aren’t locked into a single purpose. Depending on what mission requires, they can be configured for surveillance or electronic warfare, Magy told TechCrunch. When asked whether the platforms are capable of lethal operations, Magy confirmed they are. All platforms are delivered to uniformed Department of Defense operational commands, who deploy them in accordance with military doctrine.

It’s not just startups like Firestorm taking notice. The Pentagon has made contested logistics — keeping weapons and supplies moving under fire — one of only six national critical technology areas. Firestorm generates revenue through hardware sales and government contracts across all branches of the U.S. military. The Air Force contract carries a $100 million ceiling, though only $27 million has been obligated so far.

The technology has already seen real-world use. Currently, two xCell units are deployed domestically; one with the Air Force Research Laboratory in Rome, New York, and one with Air Force Special Operations Command in Florida, Magy said. Firestorm declined to specify which units in the Indo-Pacific are using xCell, though the company says the platform is operational in the region.

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Inside each xCell container sits an industrial-grade HP 3D printer that prints the body and shell of each drone. Under the deal, Firestorm holds a five-year global exclusive with HP to use its industrial 3D printing technology in mobile deployment units, Magy said. The weapons themselves are not 3D-printed and are added separately, according to Magy. The Army has also used xCell to print replacement parts for a Bradley Fighting Vehicle on-site, parts that would otherwise take months to procure, the CEO noted.

The problem runs deeper than distance. Fixed manufacturing sites are themselves targets, a vulnerability Ukraine learned the hard way. And modern conflict moves fast. Lessons from Ukraine show drone designs can change within days, not months, Magy said.

For Firestorm, the Indo-Pacific is the main event, where the company says the logistics challenges of modern conflict are hardest to solve. The startup aims for xCell to reach full operational deployment there, “ideally within the next two years,” Magy told TechCrunch.

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Planned Amazon data center could become the biggest climate polluter in the U.S.

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As part of a planned data center in Pecos County, Texas, Amazon is investing in an on-site power plant that could become the largest source of climate pollution in the United States, according to The New York Times.

The NYT says the plant would burn natural gas and is permitted to release 33 million tons of carbon dioxide per year — more than any other power plant in the U.S.

In a statement, an Amazon spokesperson confirmed that the data center will “be powered by new on-site generation that won’t raise electricity costs for Texas families.” (Data centers face growing political opposition for a number of reasons, including their effect on electricity costs.)

AI has already had a significant impact on Amazon’s carbon emissions, which it reported were up 16% last year — the wrong direction for a company that pledged to eliminate its carbon emissions by 2040. And that could get worse as Amazon and tech companies back the development of huge natural gas plants to support their power-hungry data centers.

The Amazon spokesperson said, “The world looks different now than when we co-founded the climate pledge,” while also claiming, “Our commitment hasn’t changed.”

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OpenAI acquires presentation startup NextSlide

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NextSlide recently announced that it’s joining OpenAI, with the presentation startup’s team members now working on ChatGPT.

The NextSlide website currently displays a note from founder Ahmed Beshry describing the startup’s product as one “that could turn prompts, notes, documents, or research into a polished, editable presentation.”

The ultimate goal, Beshry said, was “to make visual communication more accessible and help more people express their ideas clearly.” So by joining OpenAI, the team will “continue pursuing that same mission: building AI products that help people create, communicate, and turn their ideas into meaningful work.”

The financial terms of the deal were not disclosed. In a note on LinkedIn, Beshry said the announcement is coming “a few months late,” as the acquisition took place “earlier this year.”

Beshry was previously a co-founder at Caper AI, a smart cart/cashier-less checkout startup acquired by Instacart in 2021.

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X replaces ‘misaligned’ revenue sharing program with Original Content Rewards

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X, the social media platform now owned by Elon Musk’s SpaceX, is shaking up how it pays influencers and creators.

In announcing the change, the company said it will be winding down its existing Revenue Sharing program and replacing it with something called Original Content Rewards. X will stop accepting new Revenue Sharing participants, while existing participants will continue earning money through September 7.

Then, starting on September 8, they’ll be able to apply for the new program. Participants will still need to subscribe to one of X’s Premium tiers, and there will be qualifying thresholds for follower count (500 verified followers) and impressions (500,000 Home Timeline impressions from verified users in 90 days), but it sounds like the big change is the emphasis on originality. 

What counts as original content? X said it can include original reporting and analysis, photos and videos created by the poster, or memes and graphics they’ve designed themselves. Commentary also counts, but “if your content regularly incorporates material created by others, you’ll need to contribute meaningful original value for it to qualify under our original content guidelines.”

The company also included examples of posts that won’t count as original, such as those just copied over from another account, downloaded from one account and re-uploaded to your own, or reposting content “without meaningful transformation.”

This announcement follows repeated attempts by X to reform the Revenue Sharing program, for example reducing payments to aggregators and “clickbait” accounts in April. But these efforts have also prompted complaints from popular accounts profiting from the current system; Musk even reversed some of those changes (giving a creator’s local audience more weight when calculating payouts) after a backlash.

In a post about the new changes, X’s Allegra Jacchia wrote that the existing program “had reached a point where its incentives were misaligned.”

“Creators should be focused on bringing net new content to the platform instead of maximizing payouts,” she said. “We could have kept adding more rules and exceptions, but ultimately the better decision was to start fresh and build a program designed from day one to reward originality.”

Jacchia added that X be “continue refining the program, improving our models, and raising the bar over time.”

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