This week, the U.S. Air Force announced fresh funding for Palladyne AI’s Palladyne IQ autonomy software—a strategic move straight out of AFWERX’s innovation playbook. Why does that matter? Because robots are no longer just for manufacturing—they’re becoming vital troubleshooters on live aircraft maintenance lines. I’ll break down what this funding means for defense, robotics, and future readiness.

Air Force Injects New Capital into Palladyne AI
Insight | Stat |
---|---|
Air Force awarded multi‑million‑dollar Phase II to Palladyne AI | 2‑year contract |
Palladyne IQ demo-ed autonomous sanding & media blasting | Completed as of Jun 11, 2025 |
Palladyne AI stock up ~386% over past year | Market cap ~$335 M, 68% gross margin |
This new tranche of Air Force funding isn’t just money—it’s a signal that autonomous robotics are moving from concept to hangar‑floor implementation. Palladyne AI is one of the few making it happen. For the military and industry alike, this signals a turning point: AI isn’t just smart—it’s capable.
How We Got Here: From AFWERX to Aircraft Hangars
Palladyne AI—formerly Sarcos Robotics—shifted focus in 2023, rebranding in March 2024 to concentrate solely on AI software for robotic systems. Selected in the AFWERX/AFVentures STRATFI program, the company began a Phase II effort last year at Warner Robins ALC in Georgia.
What the Tech Can Now Do
In the latest milestone updates, Palladyne IQ showcased:
- Autonomous media blasting on complex parts using a Fanuc M710 robot—covering distance, angle, speed and path width—all under closed-loop AI control.
- Teleoperated and fully autonomous sanding with a UR10e cobot—handling contoured, overhead, at-height sanding precision that’s customizable per aircraft component.
CEO Ben Wolff emphasized the leap in dexterity and ease of use, adding that the software demonstrates real-world value—not just lab demos.
Why This Matters in the Field
Operational efficiency: Winged platforms spend less time sidelined for maintenance when robots swiftly prep parts like fuselage sections and turbine blades.
Safety gains: Automated sanding in hard-to-reach areas reduces risks of human error and operator fatigue.
Scalable tech: Once validated, AI-powered surface-finish robots can be deployed across Air Logistics Complexes nationwide (and even in allied nations).

Beyond Defense: Broader Implications
Palladyne IQ’s adaptability extends to automotive, aviation, construction, logistics—anywhere precise removal or finishing of surfaces is key, all without retraining robots continually.
The Next Episodes in the Story
We’re in Year 2 of a Phase II contract that could stretch to four years. Expect future milestones on additional tasks—weld prep, adhesive removal, maybe even composite inspection—all under closed-loop AI.
On the financial front, inclusion in the Russell 3000 index in late June 2025 should boost Palladyne AI’s visibility with institutional investors.
FAQs
What is the Air Force’s AFWERX program?
It’s the Air Force’s innovation incubator aimed at accelerating tech breakthroughs via public‑private partnerships—STRATFI is one of its funding tracks.
Who is Palladyne AI?
An AI-software company born from Sarcos Robotics, founded in 1983 and pivoted to AI in 2023–24. Public since that period trading under NDAQ tickers PDYN/PDYNW.