Pentagon's $54bn drone bet: How the US is preparing for the wars of the future

The Pentagon has proposed a record investment in autonomous warfare, seeking about $54 billion for the Defence Autonomous Warfare Group (DAWG) under its fiscal year 2027 defence budget. US President Donald Trump has proposed $1.5 trillion defence budget for the year 2027, one of the largest hikes in defence budget in its history.

The funding aims to rapidly field hundreds of thousands of low-cost attack drones and autonomous systems. The move reflects the growing shift in US defence strategy shaped by lessons from recent conflicts in Ukraine and the West Asia.

The Pentagon plans to field hundreds of low-cost drones will rely heavily on a growing network of defence technology companies that specialise in autonomous systems. This program also serves as a change in the US, where military programs are dominated by handful of large defence contractors of the well-established military-industrial complex, but this drone dominance initiative is drawing a mix of established firms and emerging startups capable of rapidly designing and producing at scale.

While the Pentagon has not publicly released a definitive list of drone systems that will be procured under the FY2027 Drone Dominance initiative, earlier programs such as Replicator offer’s indication of the capabilities the US military is seeking to field.

Replicator, a program launched in August 2023, designed to counter China's numerical advantage and accelerate the adoption of autonomous technologies. Replicator prioritised affordable drones that could be produced and deployed at scale. The initiative became the testing ground for several drone systems and procurement models. Replicator was also heavily influenced by lessons from the Ukraine war, where inexpensive drones proved capable of destroying tanks, artillery and other high-value assets.

The Pentagon dissolved the Replicator initiative in late 2025 and absorbed it into the newly created Defence Autonomous Warfare Group (DAWG), consolidating US autonomous warfare efforts under a single organisation. Replicator selected a range of reconnaissance drones, loitering munitions and precision-strike platforms that military planners viewed as suitable for future high-intensity conflicts.

Programs selected under it:

1. Switchblade 600, developed by AeroVironment, it’s a tube-launched loitering munition designed to destroy armoured targets. With an endurance of approximately 40 minutes the drone can loiter over a target area.

2. Altius-600 is developed by Anduril Industries, it is a tube launched autonomous drone designed for reconnaissance, electronic warfare and strike missions. Its modular design supports multiple payloads, while swarm networking allows coordinated operations. The strike variant, Altius-600M, offers up to four hours of endurance and a range of about 450 km.

3. Ghost-X, is another drone developed by Anduril Industries. The Ghost-X is designed for Intelligence, Surveillance and Reconnaissance (ISR) missions. With a modular payload architecture and rapid deployment capability, it provides real-time battlefield awareness and target acquisition, making it a key reconnaissance asset for future drone swarms and distributed operations.

4. Coyote LE SR, developed RTX Raytheon, is a low-cost, tube-launched autonomous drone designed for reconnaissance, electronic warfare, communications relay and one-way attack missions. With a weight of 12.2 kg, it has a range of 160 km and an endurance of 90 minutes.

5. Indago 4, developed by Lockheed Martin a small tactical reconnaissance quadcopter designed for frontline troops to provide real-time intelligence, surveillance and target acquisition. It can be carried in a backpack and deployed within minutes. Around 3.4 kg in weight, it has an endurance of 50-70 minutes depending on the payload.

6. Red Wolf, developed by L3Harris Technologies is a low-cost "launched effect" designed for long-range precision strikes and affordable mass production. It has a range of more than 350 km with the endurance of 60 minutes

7. Barracuda-500, also developed by Anduril Industries, Barracuda-500 was selected to advance in the US Air Force and Defence Innovation Unit's Enterprise Test Vehicle (ETV) program. Designed as a low-cost, mass-produced autonomous strike platform. It can carry a payload of 45kg with a range of 900 km.

8. LUCAS, developed by SpektreWorks, is a low-cost one-way attack drone with a range of about 800 km with an endurance of up to six hours, and an 18 kg warhead. Inspired by the Iranian Shahed-136, it is designed for mass production, swarm operations and long-range precision strikes.

The pentagon’s massive investment in autonomous warfare, reflects the fundamental shift of US military from small number of highly sophisticated and expensive platforms to large number of low-cost autonomous systems. The shift is driven by lessons from recent conflicts, particularly in Ukraine, where inexpensive drones have repeatedly challenged sophisticated military equipment.

Future wars may not be sole decided solely by advanced fighter jets, warships, or missiles, but by the ability to rapidly produce and deploy thousands of autonomous systems.