Spear AI Secures $2.3 Million Funding to Advance AI for Underwater Surveillance

U.S.-based startup Spear AI has raised $2.3 million in its first funding round to develop artificial intelligence tools designed to analyze passive acoustic data collected from submarines. The firm, founded in 2021 by former Navy personnel Michael Hunter and John McGunnigle, aims to revolutionize underwater threat detection for military and commercial purposes.

Unlike traditional AI systems built on clean, labelled datasets, Spear AI’s technology handles raw, unstructured sound recordings gathered from undersea environments. These sounds—ranging from rainfall and sea life to potential enemy movements—are notoriously difficult to categorize. Spear AI has created both hardware sensors and automated software tools to sort and label this data, making it usable for machine learning applications.

The startup recently secured a $6 million U.S. Navy contract to enhance its data-labelling platform. With its new funding, backed by investors such as Cortical Ventures and Scare the Bear, Spear AI plans to double its 40-member workforce and expand into commercial domains, including monitoring undersea pipelines and infrastructure.

CEO Michael Hunter emphasized the importance of private capital in building military-grade solutions ahead of government procurement timelines. The funds will enable Spear AI to accelerate development and deployment of its products, allowing faster response to defence and industrial needs.

Spear AI positions itself as a next-generation defense-tech firm, combining deep military experience with cutting-edge AI, much like Palantir. Its growth highlights the increasing role of AI in maritime security and underwater data analysis.