Leonardo and Baykar Technologies have signed a memorandum of understanding to establish a joint venture focused on the development of unmanned aerial vehicles (UAVs), leveraging Leonardo’s aerospace systems expertise and Baykar’s advanced UAV technologies. The joint venture will be headquartered in Italy and will specialize in the design, development, production, and maintenance of UAV systems, ensuring interoperability within multi-domain defense systems through the integration of artificial intelligence, electronic warfare systems, and modern command and control capabilities. Baykar will provide proven drone platforms tested under various conditions, while Leonardo contributes its knowledge in combat systems, payload integration, certification, and AI-based defense technologies. With the European UAV market projected to reach $100 billion over the next decade, driven by demand for strike UAVs and ISR capabilities, this collaboration positions both companies to capitalize on growth within the defense sector in Europe and beyond. CEO Roberto Cingolani emphasized the agreement’s role in advancing defense innovations to address future challenges in AI, cybersecurity, and next-generation aerial combat, while Baykar’s chairman Selçuk Bayraktar highlighted its significance in enhancing air superiority technologies. The joint venture will be implemented across several Leonardo facilities in Italy, effectively broadening Europe’s technological capabilities in unmanned defense systems.