BAE Systems invests in Oxford Dynamics
BAE Systems has taken an equity stake in UK-based deep-tech start-up Oxford Dynamics, as part of its effort to seek out and quickly integrate next-gen technologies.
The partnership aims to leverage BAE Systems’ expertise in defence and security with Oxford Dynamics’ capabilities in AI-driven data analysis.
The goal is to enhance the UK and its allies’ capabilities across all domains of the modern battlespace, including air, land, sea, space, and cyber.
The initial phase of this collaboration will involve incorporating Oxford Dynamics’ AI technology into BAE Systems’ Prophesea digital solution.
Prophesea platform is designed to help defence organisations maintain the operational readiness of critical assets such as warships, armoured vehicles, and combat aircraft.
BAE Systems digital intelligence business group managing director Andrea Thompson said: “By working with companies such as Oxford Dynamics, we can help ensure that the nation is ready to unlock the advantages that innovation brings and help strengthen the UK’s sovereign defence and security landscape.”
Established in 2020, Oxford Dynamics builds “intelligent autonomous systems” that can interpret data, coordinate actions, and make real-time decisions.
These systems aim to enhance mission planning and threat response for defence and security organisations.
BAE Systems’ equity investment in Oxford Dynamics will support the latter’s growth while allowing it to operate as an independent entity.
This investment aligns with the UK Government’s ambition to strengthen the nation’s defence industry and create skilled jobs within the sector.
“This collaboration embodies the UK Government’s Strategic Defence Review’s call to action: accelerate innovation, deliver sovereign capability and build a more integrated and lethal force.
“Our shared mission at Oxford Dynamics is to bring trusted AI to the front line and working with BAE Systems gives us the platform to quickly scale our technology into systems that will make a real difference to our armed forces,” Oxford Dynamics’ Dr Edward Jackson said.
An independent analysis by Oxford Economics released in July 2025, indicated that BAE Systems bolstered the UK economy, with its activities estimated to have contributed £13.7bn ($18.6bn) to the nation’s Gross Domestic Product in 2024.
