Defence Holdings
A second wind is coming.
Good Afternoon Team.
I think I’d like to start with two warnings, of different natures.
First, there seems to be a lot of stress about the month to month or even day to day #ALRT share price. Let me be clear:
THIS IS A GROWTH STOCK.
If you’re stressing about being down 50% in a growth stock (or getting very happy about being up 100%) you’re doing it wrong. It should form part of a diversified portfolio.
There’s going to be huge up and huge down days. Don’t sweat it. This is an investment for the next five years.
And as ever, don’t risk more than you can afford to lose.
Second, I have spent the past few years supporting IPOs on both sides of the Atlantic.
In the US, everyone’s a cheerleader. Everybody wishes you well,
Everybody is hoping that you succeed.
In the UK, London suffers from a kind of sadistic misery where each IPO is greeted by choruses of risk warnings, failure rates and red flags.
You know what?
Growth stocks are high risk. They’re also high reward. A middle ground which acknowledges this is probably healthiest - but those complaining about the dearth of IPOs might want to think about the environment they have created.
But bottom line, Defence Holdings remains a strong risk play - and the catalysts are lining up.
Before we go further, anyone new to this stock is more than welcome to read my previous articles and interviews with management:
The Ground Floor of the UK’s Palantir.
First Interview with CTO Andy McCartney.
The most recent interview took place on 8 October. With Project Ixian entering ‘its first phase of value realisation in December’ (see below), the share price has done what all growth stocks do - shoot up initially - and then come back down for some consolidation before the next catalytic event.
For those of you who read my initial note on 26 August, you’re sitting pretty on a >3x return (and my guess would be that this churn since mid-October has seen many of you de-risk to some extent).
No shame in that, a profit’s a profit.
But I think more is to come, and we are going to see a move in the near future.
The UK’s Sovereign AI Defence Play is Accelerating
Defence Holdings has transformed from a strategic vision into an operational force within the UK and allied defence technology ecosystem.
What started months ago as the UK’s first listed software-led defence company has rapidly evolved into a key player working at the intersection of sovereign AI capability and hyperscale infrastructure.
The company’s thesis is straightforward:
Take the world’s most trusted hyperscale platforms and build sovereign AI products directly on top of them.
Fast execution, allied alignment, and partnership with technology leaders are turning this concept into deployed capability.
Project Ixian: The Foundation
Defence Holdings’ inaugural product, Project Ixian (clearly named for the Jedi), addresses one of the UK’s most pressing strategic priorities - information integrity and resilience against information warfare.
Because in an era where disinformation campaigns can destabilise nations faster than conventional weapons, the ability to rapidly assess, verify and respond to information threats has become critical infrastructure.
Built natively on Google Distributed Cloud air-gapped, Ixian is designed for the most stringent data residency and security requirements, operating completely disconnected from the internet.
The platform uses AI/ML pipelines to detect, assess and interpret open-source content, allowing for faster, more informed decisions in information operations.
It’s sovereign by design, scalable from inception, and co-developed with Google Cloud and Whitespace engineers to embed UK standards from day one.
The product has moved through validation with UK defence stakeholders and was demonstrated at DSEI 2025 to NATO programme executives and allied information-operations leads.
But the real validation came in late October when Defence Technologies received an invitation to showcase Ixian at NATO Task Force Maven Industry Day on 21 November 2025 at SHAPE Headquarters.
This is not a networking event.
Presentation slots are by invitation only and reserved for technologies showing near-term applicability to allied missions. The event brings together programme leads, procurement authorities and operational commanders identifying emerging technologies for integration into the Maven Smart System (MSS), a cornerstone of NATO’s AI modernisation effort.
Defence will be presenting alongside a select group of companies demonstrating operationally ready AI capabilities to senior NATO, Allied Command Transformation, and Allied Command Operations representatives.
Defence Holdings isn’t pitching from the outside. They’re being pulled into the centre of NATO’s digital transformation.
The Second Build: Edge Analysis & Identification
Last month, Defence Holdings announced its second classified AI product build, and this one goes straight to the operational edge.
While Project Ixian tackles information warfare at the strategic level, the second product addresses something equally critical: improving identification, reducing misclassification and supporting decision-making in contested environments where milliseconds matter.
‘The edge’ in military terminology refers to deployed environments where data is captured and decisions are made in real time, often in austere or disconnected conditions. Think forward operating bases, naval vessels in contested waters, uncrewed systems operating autonomously, or soldiers using handheld devices in the field.
These are environments where you can’t always phone home to a data centre for an answer.
The AI needs to work locally, fast, and reliably.
Defence Holdings’ approach is software-led and AI-enabled, designed to extend the value of existing hardware rather than requiring entirely new systems.
The capability ingests data from deployed sensors and moves time-critical AI/ML inference onto secure edge devices. It fuses multi-sensor inputs—electro-optical, infrared, radar, acoustic—flags anomalies, prioritises actions, and provides decision-ready context to operators and headquarters.
The goal is to help teams stay ahead of an adversary’s OODA loop: observe, orient, decide, act.
The practical applications are tangible:
On-platform sensor fusion improving recognition and de-confliction in seconds.
Uncrewed systems performing onboard detection and route re-planning to reduce bandwidth and latency.
Military units correlating radar and electro-optical tracks at the edge to enhance identification in cluttered littorals.
Forward elements using handheld edge devices to triage ISR, logistics, and maintenance data before synchronising summaries back to headquarters.
This program is being developed with a new hyperscale partner, demonstrating that Defence Holdings’ model—sovereign software built on trusted global infrastructure—is repeatable across multiple products and partners.
Both classified products remain on budget and on schedule, with multiple validation milestones planned for before Christmas.
The Hyperscale Ecosystem: Google, Oracle, NVIDIA
Defence Holdings isn’t building in isolation.
The company has secured partnerships with three of the world’s leading technology providers, being actively integrated into the core infrastructure and development programs of the world’s leading AI and cloud platforms.
Google Cloud was announced as the hyperscale provider for Project Ixian in early October, with the product built natively on Google Distributed Cloud air-gapped. The relationship has also expanded beyond a single product.
Defence Technologies is participating in Google’s Digital Sovereignty Summit in Munich today, a gathering of European and allied government, defence and industry leaders focused on sovereign AI, secure cloud infrastructure and digital autonomy.
There’s ongoing collaboration with Google’s UK and EMEA Defence teams, and the consistent pattern of joint engagements suggests this is a deepening strategic relationship.
This month, the company also announced a collaboration framework with Oracle. Defence Technologies’ applications will deploy across Oracle Cloud Infrastructure, including Oracle Roving Edge Infrastructure, Oracle Compute Cloud@Customer Isolated, and Oracle Exadata Cloud@Customer.
Whitespace, Defence Technologies’ partner, is a founding member of the Oracle Defense Ecosystem, and Defence Technologies showcased at Oracle AI World 2025 in Las Vegas with closed-door sessions with Oracle’s UK and global defence leadership.
The company has indicated that this engagement is expected to expand into a broader collaboration, with further updates expected in the coming weeks.
Then there’s NVIDIA. Defence Holdings and Whitespace participated in technical briefings at NVIDIA’s Las Vegas showcase, previewing the new DGX Spark platform. This is one of only 50 systems distributed under NVIDIA’s seed programme for strategic partners in defence and national security.
Other early recipients include NASA and Lockheed Martin.
The pattern here is clear.
Defence Holdings isn’t just using cloud infrastructure — they’re operating as a strategic partner to the world’s most advanced AI and cloud companies, helping them translate hyperscale capability into sovereign defence applications.
Recognition at the Highest Levels
The company’s rapid progress has earned formal recognition that matters. Defence Holdings has been formally recognised by senior UK defence leadership as a ‘Tier 1 asset’ within the UK’s innovation ecosystem.
This designation reflects the company’s growing role as a trusted partner in the delivery of sovereign capability at the highest levels of national security.
The company is now engaged directly by the most senior UK defence leaders to address complex challenges in information dominance, interoperability, and decision support. It enjoys representation in the Coalition of the Willing within NATO frameworks and is collaborating at the highest echelons of the UK defence and national-security community.
Andy McCartney, the company’s Chief Technology Officer, captures the shift:
‘We’re no longer presenting ideas from the outside; we’re being brought into the core of defence transformation, working directly with those shaping the UK’s and NATO’s digital operating model. That shift reflects disciplined execution, credible delivery, and the calibre of the team driving it.’
Capital Markets & Growth Infrastructure
To support acceleration, Defence Holdings has taken several strategic steps to access capital and expand its investor base.
The company’s shares have been approved for cross-listing on the US OTC Market under ticker ALRDF. This will allow direct participation from North American investors and reflects the company’s expanding collaboration with US hyperscale infrastructure partners.
It’s also working on the appointment of US-based investor relations and market-making representatives to support North American shareholders.
This move addresses strong inbound interest from investors outside the UK and positions Defence Holdings as a bridge between UK sovereign innovation and allied capital markets.
Defence Holdings has also established an At-The-Market equity issuance facility, widely adopted by high-growth US technology companies. The ATM provides a flexible mechanism to raise growth capital at prevailing market prices, avoiding the material discounts typically required for traditional block placings.
Leadership & Expansion
Defence Holdings is significantly expanding its senior leadership team to support rapid growth and delivery at scale.
Recruitment is underway for a Chief Operating Officer to strengthen operational oversight and programme execution as the company enters its next phase of institutional maturity. The company is also expanding its engineering and delivery teams as it transitions from product development to operational deployment.
This expansion builds on the foundation established under the Chairmanship of General Lord Houghton, with the recent appointment of the Field Marshal as Non-Executive Chairman.
Strategic Alignment: SDR25 & NATO Priorities
Both of Defence Holdings’ classified AI products are fully aligned with the UK Strategic Defence Review 2025 priorities and NATO interoperability objectives.
This gives the company a direct policy tailwind and adoption pathway. They’re not building speculative technology hoping to find a customer — they’re building exactly what the UK and allied forces have identified as urgent requirements.
Project Ixian addresses countering disinformation, digital vulnerabilities, and narrative manipulation by malicious actors.
The second product tackles edge-based identification and decision support, directly addressing one of NATO’s most urgent priorities. Both programs adhere to NATO’s Principles of Responsible Use for AI in Defence, ensuring they can be integrated into allied operations without sovereignty or compliance concerns.
This alignment matters because defence procurement is notoriously slow and risk-averse. But when a capability directly addresses published strategic priorities, developed in partnership with hyperscale providers already trusted by government, and validated by senior defence leadership, the pathway to adoption becomes significantly clearer.
Defence Holdings is building sovereign software that NATO and the UK MOD have already said they need.
The question isn’t whether there’s demand — it’s how fast they can scale to meet it.
They can = and must be - faster than the titans.
The Investment Thesis
Defence Holdings offers exposure to a rare combination of attributes that are difficult to find in a single listed vehicle.
First, sovereign AI capability built to UK and NATO standards.
A common misconception is that this is commercial AI adapted for defence. It’s not.
It’s designed from inception to meet the most stringent data residency, security and operational requirements of allied forces.
Second, hyperscale infrastructure partnerships with Google, Oracle and NVIDIA. Defence Holdings has secured relationships with three of the world’s most advanced technology companies, and these partnerships are deepening into operational collaboration.
The company is being integrated into product development programs, seed initiatives, and strategic summits.
Third, a rapid execution model that converts strategy into deployed products in weeks and months, not years. Defence has two classified products in active development, partnerships with three hyperscale providers, formal recognition from UK defence leadership and invitations to NATO’s most strategic programs.
Fourth, expanding commercial pathways across UK and allied markets. Both products address urgent, published strategic priorities in information operations and edge decision support.
Fifth, a listed vehicle providing public market access to sovereign defence AI. There are very few ways for public market investors to gain exposure to this sector.
Most sovereign defence AI work happens inside classified programs at private companies or government agencies. Defence Holdings is one of the rare exceptions — a listed company with genuine access to this ecosystem.
What’s Next
The medium term outlook is about transitioning from validation to commercialisation. Project Ixian is moving through final stages toward operational deployment.
The second classified product, focused on edge analysis and identification, is also moving from development to deployment.
Expansion of the product portfolio into additional domains aligned with SDR25 priorities.
Deepening integration with hyperscale partners as these relationships evolve from single product collaborations to strategic partnerships.
Scaling from validated capability to operational deployment across allied forces.
Defence Holdings has indicated that with momentum building across multiple programmes, additional product announcements are expected as the company continues to convert its strategic roadmap into deployed capability.
The Bottom Line
The next phase is about scale. Embedding capability across programs. Accelerating delivery with allied partners.
Realising the full commercial and strategic value of the platform the company has created.
For investors seeking exposure to sovereign defence AI, Defence Holdings represents one of the few listed companies positioned to capture this opportunity.
The combination is unusual: sovereign design, hyperscale integration and commercial agility at a moment when NATO and allied forces are prioritising exactly this combination.
Defence Holdings is not knocking on doors.
They’re being invited in.
And commercial realisation comes next month.
Project Ixian, named for the Jedi... I thought it was named after the Ixians of Dune! The tech savvy planet.
Thanks for the update btw!
Definitely one to add to gradually and be prepared for votility.