Crash and Burn: Peter Thiel’s Drone Bet Misses Every Target

“It Was a Disaster for Stark”

According to four people familiar with the trials, Stark’s Virtus attack drones failed to hit a single target in four attempts across two exercises — one with the British Army in Kenya and another with the German Army near Munster in Lower Saxony.

In one incident, a drone lost control and crashed into a wooded area; in another, a drone’s battery caught fire after impact.

“It was a disaster for Stark,” one source told the Financial Times, saying the company had “been overselling their capabilities.”

Start-Up Cites “Hundreds” of Test Crashes

Stark defended its record, stating, “We did not crash once or twice, we have crashed a hundred times. That is how we test, develop, and deliver.”

The company said its Virtus drone, capable of speeds up to 250 km/h and targeting within 100 km, is already deployed on the front lines in Ukraine.

Competing Rivals Outperform

During the Haraka Storm exercise in Kenya, rivals Helsing and ARX Robotics achieved multiple direct hits.

Helsing’s HX-2 drone reportedly succeeded in five strikes, while Stark’s two test runs both failed.

A separate German trial produced similar results: Stark’s drones missed both targets, while Helsing’s units scored 17 successful hits.

€10 Billion Defense Push and Drone Bubble Fears

The setback comes amid a broader European defense push, with German Defense Minister Boris Pistorius pledging €10 billion for drones in the coming years.

Industry observers warn that the rapid influx of funding risks inflating a “drone bubble,” as start-ups overpromise and underdeliver amid wartime demand driven by the Ukraine conflict.

Expansion Plans Continue

Despite the failures, Stark plans to open a new factory in Swindon, U.K., in November 2025, and aims to produce “thousands” of drones by January 2026, according to CEO Uwe Horstmann.

The Bundeswehr has not yet commented on the outcome of the trials, which remain a condition for Stark’s pending €300 million contract.