Scaleout Systems, a Swedish startup founded by Uppsala University researchers in 2018, has adapted its federated learning technology for military applications following Russia's 2022 invasion of Ukraine. The company now develops lightweight AI models that operate on edge hardware in drones and forward-deployed computing nodes, enabling autonomous target detection and engagement without reliance on central servers.

Instead of deploying large-scale AI models from commercial providers, Scaleout focuses on compact computer vision systems designed for variable edge environments—from embedded drone components to more powerful field workstations. Their approach allows drones to process sensor data locally, identify potential threats such as armored vehicles, and execute missions like precision strikes while maintaining operational resilience against electronic warfare and communication disruptions.

The technology was tested within NATO's Defence Innovator Accelerator for the North Atlantic (DIANA) Challenge Program and as part of the Affordable Loitering Modular Ammunition (ALMA) project led by BAE Systems Bofors. In January 2026, Scaleout demonstrated a drone capable of autonomously detecting, identifying, and geolocating threats using onboard AI, then prioritizing high-value targets for engagement. During trials at a Swedish Air Force base in June, the system maintained local AI functionality after losing connection to central servers, later synchronizing updates when connectivity resumed.

By distributing model training across decentralized nodes—including drones, pilot tablets, and command posts—Scaleout's federated learning framework enables continuous adaptation to new battlefield conditions. Updates from multiple edge devices are aggregated locally before being shared with central systems, allowing AI models to evolve in response to diverse environments such as urban or desert terrains. According to CEO Andreas Hellander, this capability could eventually facilitate collaborative AI development across NATO member states, enhancing strategic flexibility in contested operational theaters.