By Ireti Asemota.
Italy’s defense giant Leonardo S.p.A. has launched the Michelangelo Dome, an AI-integrated air defense system designed to protect cities and critical infrastructure from missiles, drones, and swarm attacks. Announced on November 27, 2025, the project aims for full operational status by decade’s end, bolstering Europe’s sovereign defense amid U.S. policy shifts and geopolitical strains.
Inspired by Israel’s Iron Dome and U.S. President Donald Trump’s proposed “Golden Dome,” the system fuses radar, sensors, and AI analytics into an “open architecture” platform compatible with allied networks. CEO Roberto Cingolani emphasized:
“In a world where threats evolve rapidly… defense must innovate, anticipate, and embrace international cooperation.”
Leonardo shares rose 0.8% Thursday, up 77% YTD—part of a European defense boom: BAE Systems (+43%), Rheinmetall (+149%), Thales (+64%).
Europe’s Defense Surge: 5% NATO Target by 2035
The EU’s €150B ($173.5B) loan program (May 2025) and NATO’s 5% GDP spending pledge (June 2025) fuel the shift from hardware to networked systems. Airbus CEO Guillaume Faury noted data-sharing protocols lag, potentially taking a decade for a “digital battlefield.”
Private Capital Floods In
Defense tech startups are attracting billions:
- Helsing (German AI drones): €600M raise, valuation to €12B (June 2025).
- Quantum Systems (autonomous drones): €180M funding, valuation triples to €3B+ (November 28, 2025).
Analyst Loredana Muharremi (Morningstar): “Winners will own the network layer, capturing recurring upgrades.” Risks include execution delays and procurement dependencies, per Meghan Welch (Brown Gibbons Lang).
Leonardo’s dome positions Europe for integrated deterrence—AI as the new frontline.
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