The AI Defense Race Is Already Underway—And America’s Top Tech Billionaires Say We’re Falling Behind

0:00 / 0:00

At a recent TED event, Palmer Luckey1 — founder of $8.2 billion defense tech giant Anduril — issued a dire warning:

“The US should double down on developing AI-controlled weapons, otherwise China could outperform in a future war fought with autonomous systems.”

This isn’t just another billionaire opinion piece. It’s a red alert from inside the war room.

Because like it or not, the next global arms race won’t be fought with bullets. It’ll be won with algorithms.

Autonomous drones. AI surveillance. Real-time threat detection.

We’re talking about systems that don’t sleep, don’t flinch, and never blink—all powered by artificial intelligence.

And while lawmakers argue over TikTok bans and semiconductor subsidies, the world’s richest entrepreneurs are already repositioning their portfolios for what comes next:

image5 3 The AI Defense Race Is Already Underway—And America’s Top Tech Billionaires Say We’re Falling Behind

  • Jeff Bezos’ Amazon is deploying satellite surveillance via Project Kuiper while AWS locks in billion-dollar Pentagon contracts.2
  • Elon Musk’s SpaceX pivoted Starlink into a defense asset—now backed by a $23 million contract3 — and his early investment in OpenAI could give him a front-row seat to militarized machine learning.
  • Palantir (NYSE: PLTR) is turning battlefield data into tactical advantage, with a $618.9 million U.S. Army contract extension.4
  • And of course, Anduril, Luckey’s brainchild, is winning major border surveillance deals powered by fully autonomous AI systems.5

This isn’t future speculation.

It’s now.

But here’s what the mainstream media is missing…

While everyone’s eyes are locked on software-based AI, the hardware side of the equation — AI-powered security robots — is emerging as the real trillion-dollar opportunity.

In fact, the global physical security tech market is projected to reach $160.8 billion by 2032.6

And one under-the-radar U.S. company is already leading that charge.

This isn’t a SPAC fantasy or pre-revenue startup.

It’s a publicly traded AI robotics company — already deployed across government facilities, hospitals, airports, universities, and law enforcement agencies and its generated millions in revenue already and operated millions of hours across the country – fully autonomously.

They’ve secured over $3 million in new contracts this year alone, won a Phase I deal with the U.S. Air Force, and received FedRAMP Authority to Operate, clearing the way for full federal deployment potential across all U.S. agencies.

They’ve even opened a permanent presence in Washington D.C., aligning themselves with strategic advisors who’ve worked directly with the Department of Defense, the Defense Innovation Board, and even former Google CEO Eric Schmidt.

That company?

Knightscope, Inc. (NASDAQ:KSCP).

image3 2 The AI Defense Race Is Already Underway—And America’s Top Tech Billionaires Say We’re Falling Behind

Why are investors looking at Knightscope?
Technology keeps reshaping the landscape of safety, as evolving security risks demand new approaches. Public safety is ready for disruption by AI and robotics. Knightscope, Inc. (NASDAQ:KSCP) represents an opportunity to build the next major $30 billion defense-tech company, but focused on the home front. Its addressable market includes Homeland Security, the Department of Justice, over 19,000 law enforcement agencies, and 8,000 private security firms across the US.

Knightscope, Inc. (NASDAQ:KSCP) is pioneering the future of autonomous security—using Autonomous Security Robots (ASRs) and advanced Emergency Communication Devices (ECDs) to patrol public spaces, detect threats, and respond in real timeand are offered on a Machine-as-a-Service (MaaS) business model. 

Their K5 ASR robot is already live at police departments, as well as public and private properties, equipped with eye-level 360° HD vision, AI-driven anomaly detection. 

With a market cap under $55 million, Knightscope isn’t just early—it’s potentially undervalued by an order of magnitude. And many equity research analysts covering the stock agree

The AI defense boom is here.

And Knightscope, Inc. (NASDAQ:KSCP) may be one of the last publicly traded ways to get exposure before this sector goes vertical.

The Growth Curve Could Be Just Getting Started

If there’s one thing Wall Street consistently underestimates, it’s early-stage companies with real technology, real customers, and a recurring revenue model baked in from day one.

That’s exactly what we’re looking at with Knightscope, Inc. (NASDAQ:KSCP).

This isn’t some prototype company hoping to generate sales someday. 

Knightscope, Inc. (NASDAQ:KSCP) is already in motion—earning revenue, scaling deployments, and building predictable income streams through its Machine-as-a-Service (MaaS) business model.

And yet…

The market is valuing it at under $55 million and Knightscope’s growth trajectory just got a major boost with the recent closing of a $12.1 million financing.7 This capital injection positions the company to scale its operations, advance its technology, and expand its footprint in the security robotics market.

That’s a rounding error compared to today’s AI titans. But it’s also where opportunity lives.

Just look at Nvidia (NASDAQ:NVDA). A decade ago, it was best known for gaming chips. Today? It’s the backbone of the AI revolution. 

In just the past five years, NVDA stock surged more than 1,350% as investors caught on to its role in enabling next-gen intelligence.

Now ask yourself: What happens when the world catches up to the fact that Knightscope is doing for physical security what Nvidia did for AI computation?

In 2025 alone, Knightscope, Inc. (NASDAQ:KSCP):

  • Locked in over $3 million in new contracts
  • Expanded into universities, airports, and government agencies
  • Secured a new 33,000 sq ft Silicon Valley headquarters to support manufacturing, engineering, and deployment
  • And is continuing development on 2 all-new products – the K7 Autonomous Security Robot and the K1 Super Tower.


image1 5 The AI Defense Race Is Already Underway—And America’s Top Tech Billionaires Say We’re Falling Behind

And this is just the start.

The broader trend is impossible to ignore.

In the US, there’s one human security officer for every 200 people. Labor shortages and rising costs are only compounding the problem. Meanwhile, crime and public safety concerns are escalating across the board.

That’s where Knightscope, Inc. (NASDAQ:KSCP) steps in—offering round-the-clock AI protection, remotely managed, highly scalable, and now, federally certified.

As government contracts ramp up and private sector demand grows, Knightscope’s recurring revenue model could start compounding rapidly—turning a tiny-cap robotics firm into one of the most important players in physical AI.

This isn’t theoretical anymore.

The infrastructure is built. The machines are online. And the revenue is already flowing.

The only thing that hasn’t caught up yet?

The market cap.

Wall Street Is Starting to Wake Up

The best gains often come before Wall Street catches on.

And right now, Knightscope, Inc. (NASDAQ:KSCP) is flashing all the early signs of a breakout — but it’s still flying under most investors’ radar.

image4 The AI Defense Race Is Already Underway—And America’s Top Tech Billionaires Say We’re Falling Behind

Analyst coverage is beginning to stack up:

  • Ascendiant Capital,8 H.C. Wainwright,9 and Lake Street Capital Markets10 have all initiated coverage
  • The stock holds an Average Brokerage Recommendation (ABR) of 1.33 — a consensus rating of “Strong Buy”11

And unlike many AI startups chasing hype, Knightscope, Inc. (NASDAQ:KSCP) is already generating real revenue and closing multi-million dollar contracts across both the public and private sectors

Yet here’s the kicker…

It’s still only trading at a sub $55 million market cap with only 6.56 million shares outstanding.

That’s a tiny valuation and a low float for a company with:

  • Government clearance to operate across federal agencies (via FedRAMP ATO)12
  • A two-year contract with Palantir Technologies (NASDAQ:PLTR).13
  • A new 33,000 sq ft Silicon Valley headquarters built to scale operations nationwide14
  • And a recurring revenue model through its Machine-as-a-Service (MaaS) platform – recurring revenue for the recurring societal problem of crime.

Insiders are aligned. Knightscope, Inc. (NASDAQ:KSCP) CEO William Santana Li personally owns over 140,000 shares, and institutional players like Vanguard, Geode Capital, and State Street are already on the books.

If you believe AI is transforming every corner of modern life — from finance to medicine — ask yourself this:

Who’s leading the charge in physical security?

Knightscope, Inc. (NASDAQ:KSCP) may be the answer Wall Street hasn’t fully priced in… yet.


The Robots Are Coming to Washington — and They’ve Got Clearance to Operate

When the US federal government green-lights your tech for secure deployment across its agencies, it’s a signal worth paying attention to.

Knightscope, Inc. (NASDAQ:KSCP) just earned that distinction.

Through the support of the US Department of Veterans Affairs, Knightscope’s flagship K5 Autonomous Security Robot was awarded a FedRAMP Authority to Operate (ATO)15 — one of the most difficult certifications to achieve in the federal cybersecurity world.

Translation?

Knightscope’s AI-powered security systems are now approved to operate across the entire US federal government.

That alone could be a game-changer for this fast-moving robotics firm. But it gets better.

But the most defining moment of the year came in July, when Knightscope, Inc. (NASDAQ:KSCP) announced a two-year contract with Palantir Technologies (NASDAQ:PLTR).16

image7 1 The AI Defense Race Is Already Underway—And America’s Top Tech Billionaires Say We’re Falling Behind

Palantir is one of the most respected names in artificial intelligence and US defense infrastructure. Its software powers decision-making for some of the most sensitive environments in government and industry. For Knightscope, being chosen to work alongside Palantir is not just a partnership. It is validation at the highest level.

Palantir’s collaborations are reserved for organizations that are operational, data-rich, and ready to scale inside mission-critical systems. That makes this agreement a clear signal of where Knightscope, Inc. (NASDAQ:KSCP) stands today. A trusted developer of autonomous technology capable of meeting enterprise and federal standards.

"As federal leaders look to autonomous technologies to enhance operations and resilience, Knightscope is investing in the infrastructure, partnerships, and accreditations that will enable us to lead"
— William Santana Li, Chairman and CEO17

That vision is what drives every innovation the company builds.

And the numbers show it is resonating with customers. Throughout 2025, Knightscope (NASDAQ:KSCP) reported a string of new contracts that highlight expanding adoption across diverse sectors. 

  • April  2025 – Secured over $1.2 million in new contracts, including an order from a Fortune 25 corporation for K5 ASRs, major expansions at college campuses, and new ECD deployments for public-sector and commercial real-estate clients.18
  • July 2025 – Announced $1 million+ in additional wins across higher education, parks & recreation, healthcare, and local government, totaling 541 new ECD bookings.19
  • July 2025 – Closed $1.3 million in combined new sales, renewals, and expansions, highlighted by 834 new ECDs for clients in aviation, casinos & gaming, healthcare, and municipal facilities.20
  • September 2025 – Signed another $1 million in contracts, including 90+ new ECD orders spanning airports, hospitals, national parks, and university campuses, alongside renewed multi-year ASR service agreements.21
  • October 2025 – Surpassed yet another $1 million milestone in new and renewed contracts, reinforcing Knightscope’s momentum with long-term enterprise and government clients nationwide.22

The client mix continues to diversify as well. Healthcare networks are expanding coverage across their campuses. Universities are increasing deployments for student safety. Industrial sites, casinos, and local governments are renewing subscriptions for both Autonomous Security Robots (ASRs) and Emergency Communication Devices (ECDs). 

This combination of retention and new growth shows that once customers adopt Knightscope’s (NASDAQ:KSCP) technology, they tend to stay.

At the same time, the company continues to invest in research and development. The upcoming K7 Autonomous Security Robot represents a major step forward.  An advanced platform designed to operate across mixed terrain with greater speed, range, and intelligence. Prototypes have already been revealed, with production expected to begin in 2026. 

The K7 is poised to unlock new markets such as energy infrastructure, transportation, and logistics, all while strengthening the company’s recurring revenue foundation.

The Breakthrough: The K7 Autonomous Security Robot

For years, experts have talked about the coming convergence of artificial intelligence and real-world automation. The theory was simple: when machines can handle physical work with human-like awareness, entire industries will change.

That moment is now beginning in the world of physical security.

Knightscope’s (NASDAQ:KSCP) K7 Autonomous Security Robot is the next evolution in Physical AI. An all-new purpose-built platform that can patrol vast properties, respond to alerts, and gather data around the clock without interruption.23

image6 2 The AI Defense Race Is Already Underway—And America’s Top Tech Billionaires Say We’re Falling Behind

Designed for light-duty off-road terrain and large-scale environments, the K7 can cover the kinds of areas that fixed cameras and human guards simply cannot. From solar farms to industrial sites, ports, logistics hubs, critical infrastructure and wind farms, it was engineered to operate where visibility and coverage are mission critical.

Behind the K7’s design is more than a decade of work by Knightscope, Inc. (NASDAQ:KSCP), a company that has logged over 4 million hours of autonomous field experience and training data across its nationwide fleet of machines.24 

Each hour of operation feeds a growing data set of experiences, a real-world training system that sharpens detection, improves navigation, and expands response capabilities over time – humans and technologies working together.

Unlike conventional robotics companies that start from simulation, Knightscope, Inc. (NASDAQ:KSCP) has already proven its technology in the field. That real-world experience gives the K7 an edge in overall performance. Critical factors for clients working on public safety, law enforcement and security operations.

And while the K7 is larger, faster, and more capable than previous models, it remains part of the same connected network that powers all Knightscope machines.25 

It integrates seamlessly with the company’s security software, allowing real-time communication between units, remote monitoring through the Knightscope Security Operations Center, and 24/7 support through the company’s US-based Knightscope Network Operations Center (KNOC) team.

The result is a machine designed not only to see and record but to understand and respond, turning decades of security labor costs into a scalable, intelligent service that never stops working.

 

Top 8 Reasons

Investors Should Pay Close Attention to Knightscope Right Now

1

The K7 Launch Marks a New Era of Physical AI: After years of development and over 4 million operational hours, Knightscope, Inc. (NASDAQ:KSCP) has introduced its most advanced platform yet: the K7 Autonomous Security Robot. This machine expands the company’s reach into large outdoor and mixed-terrain environments that traditional systems cannot cover.

2

Solving a $2.6 Trillion Problem with Real Economics: Security costs across the US are soaring, with guard services reaching up to $65 an hour. The K7 delivers 24/7 coverage at an estimated $15 per hour, creating a structural cost advantage that organizations cannot ignore.

3

Recurring Revenue That Grows Every Month: The company’s Machine-as-a-Service model generates predictable income from every machine in the field. Each new deployment creates a subscription-based revenue stream, and renewals are already driving compounding growth across multiple industries.

4

Real Contracts, Real Clients, Real Cash: In the past year, Knightscope, Inc. (NASDAQ:KSCP) has announced multiple $1 million-plus contracts spanning healthcare, education, gaming, and local government. The company reported $24.2 million in cash as of August 2025, a clean balance sheet, and no toxic debt.

5

Strategic Partnership with Palantir Technologies (NASDAQ:PLTR): Palantir’s AI and defense infrastructure are used by some of the most mission-critical institutions in the world. Its decision to partner with Knightscope, Inc. (NASDAQ:KSCP) is a powerful validation of the company’s readiness, credibility, and capability to scale into high-security environments.

6

Expanding National Presence and Product Line: With nearly 10,000 machines in-network, the company protects locations across healthcare, manufacturing, hospitality, logistics, and education. New product lines, including the upcoming next generation K1, are expected to extend its footprint even further in 2026.26

7

A Leadership Team Built to Execute: Knightscope, Inc. (NASDAQ:KSCP) Chairman and CEO William Santana Li brings more than three decades of operational experience, including leadership roles at Ford Motor Company and GreenLeaf, which grew into the world’s second-largest automotive recycler. His proven track record of building scalable enterprises is now focused on one mission: making America safer through innovation.

8

A Mission That Aligns with the Future of Security: Automation is transforming how the world protects people and property. As law enforcement vacancies rise and crime continues to cost the US trillions annually, Knightscope, Inc. (NASDAQ:KSCP) stands at the center of a structural shift toward intelligent, autonomous protection.

The K7 is not a concept. It is built, tested, and ready to start production in 2026. 

And it represents a once-in-a-generation inflection point where technology meets necessity, and innovation meets impact.

Tapping into a $160.8 Billion Market

The global physical security tech market is projected to reach $160.8 billion by 2032 — driven by the urgent need for autonomous, AI-driven security solutions that can operate 24/7, reduce costs, and enhance situational awareness in real time.

As security threats evolve, governments and corporations aren’t just looking for data—they need action. This is where AI-powered security robots come in.

Knightscope, Inc. (NASDAQ:KSCP) isn’t waiting on policy shifts or theoretical applications—it’s already on the ground, actively patrolling hospitals, airports, corporate campuses, and federal buildings. 

With strong institutional backing and a float of only 6.5 million shares, Knightscope’s stock is well-positioned for significant movement as it continues to expand its market presence and secure new contracts.

How Knightscope Stacks Up in the Security Tech Space

Screenshot 2025 11 25 120617 The AI Defense Race Is Already Underway—And America’s Top Tech Billionaires Say We’re Falling Behind

Security technology has come a long way, but most players in the space still rely on humans to take action. 

Unlike traditional security firms that rely on stationary cameras, human guards, or reactive solutions, Knightscope, Inc. (NASDAQ:KSCP) is pioneering proactive, AI-driven, 24/7 security. Here’s how it compares to some of the biggest names in the industry:

  • Axon Enterprise (NASDAQ:AXON) – Axon is known for Tasers, body cameras, and VR training systems, helping law enforcement document and respond to crime. Knightscope’s robots take a different approach—deterring crime before it happens with real-time AI-driven surveillance and proactive security measures.31
  • OSI Systems (NASDAQ:OSIS): OSI focuses on stationary security screening systems, ideal for checkpoints and controlled environments.32 But what about open, unpredictable spaces? Knightscope’s robots operate dynamically, moving through facilities and public areas, extending security beyond fixed locations.
  • Palantir Technologies (NASDAQ:PLTR) – Palantir’s AI intelligence tools are used by defense agencies for high-level data aggregation and analysis. But software alone can’t physically intervene. Knightscope’s AI-powered security robots bring that intelligence to the field—serving as both an autonomous deterrent and a first line of defense.

On top of that, Knightscope’s (NASDAQ:KSCP) MaaS model creates long-term cash flow and unlocks enormous growth potential. This isn’t just a sale; it’s an ongoing partnership that ensures reliable revenue year after year.

And it’s not just about the numbers. Knightscope’s robots have already proven their value in the field—helping solve real crimes, from tracking down hit-and-run suspects to identifying armed perpetrators.

image2 4 The AI Defense Race Is Already Underway—And America’s Top Tech Billionaires Say We’re Falling Behind

Meet the Minds Guiding Knightscope’s Security Revolution

The same team that founded, funded, grew, and listed Knightscope, Inc. (NASDAQ:KSCP) over the last decade is leading the company today. They plan to continue driving growth organically over the next two to three decades, all while achieving their goal of making America safer. Among the talented roster are:

William Santana LiChairman and CEO

At 28, William Santana Li became the youngest senior executive at Ford Motor Company worldwide. With over 30 years of experience, he has a rich history in the global automotive industry and has founded and led multiple startups. At Ford, Li held various business and technical roles, including Director of Mergers & Acquisitions. He later secured $250 million in financing to found and serve as COO of GreenLeaf LLC, a Ford subsidiary. Li also founded Carbon Motors Corporation, focusing on developing the world’s first purpose-built law enforcement patrol vehicle.
Mercedes SoriaEVP & Chief Intelligence Officer / CISO

With over 15 years of experience in systems development and software architecture, Soria is a technology professional who previously led IT strategy at Carbon Motors Corporation and is former Deloitte. Her expertise drives Knightscope’s intelligence and technological advancements.
Apoorv S. DwivediEVP & Chief Financial Officer

Dwivedi brings extensive finance and corporate strategy experience. He served as CFO of Nxu, Inc. (NXU), leading it to a successful Nasdaq listing. His background includes key roles at Cox Automotive, Workiva, and General Electric, where he honed his skills in finance operations and corporate growth.
Aaron J. LehnhardtEVP & Chief Design Officer

Lehnhardt, Knightscope’s Chief Design Officer since 2015, previously led design at California Motors and co-owned Lehnhardt Creative LLC. His work spans advanced vehicle design, military projects, and innovative personal mobility solutions.

This experienced leadership team drives Knightscope’s vision and success, leveraging decades of expertise to revolutionize public safety with cutting-edge technology.

The Window of Opportunity Is Cracking Open

We are witnessing the birth of a new sector—where AI, robotics, and national security collide.

Knightscope, Inc. (NASDAQ:KSCP) isn’t just participating in this shift. It’s helping lead it.

With federal clearance through FedRAMP, a partnership with Palantir, and a presence now anchored in Washington D.C., this company is no longer a speculative concept—it’s an active, trusted player inside the halls of government.

And yet, it’s still trading at a market cap under $55 million.

That’s the kind of asymmetric setup early investors dream about.

Because once Wall Street catches up—once major institutions see the revenue growth, the federal momentum, the insider alignment—this story could rewrite itself very quickly.

If you missed Palantir under $10… if you hesitated when Anduril was still private…

This is your second chance.

Knightscope (NASDAQ:KSCP) is building the future of public safety—autonomously, intelligently, and at scale.

Now is the time to pay close attention. Before the rest of the market wakes up.

Why are investors looking at Knightscope?
Technology keeps reshaping the landscape of safety, as evolving security risks demand new approaches. Public safety is ready for disruption by AI and robotics. Knightscope, Inc. (NASDAQ:KSCP) represents an opportunity to build the next major $30 billion defense-tech company, but focused on the home front. Its addressable market includes Homeland Security, the Department of Justice, over 19,000 law enforcement agencies, and 8,000 private security firms across the US.

Disclaimer

Get Money
Saving Tips

Learn how to save and make more money with our exclusive tips and insights that we only share with our private newsletter subscribers.

Privacy Policy