Japan’s Rakuten Group plans to partner with German defence technology startup Helsing to introduce AI-powered attack drones to the Japanese Self-Defence Forces, Nikkei reports.


Helsing has yet to establish a significant presence in the Japanese market. Under the partnership, Rakuten will serve as a local point of contact, help the company present proposals to Japanese authorities and support field tests of Helsing’s drones with the Ground Self-Defence Force.


Rakuten will also help Helsing promote its latest products in Japan and seek potential customers. The two companies are considering working together on mass production of the drones in Japan.


The partnership reflects Rakuten’s broader effort to generate revenue by helping overseas technology startups enter the Japanese market, in a business model similar to that used by major Japanese trading houses.


The company plans to draw on its experience working with startups and government agencies, as well as its own drone business, which it has operated since around 2015.


Rakuten has also worked with Ukraine on defence technology. In cooperation with Ukrainian government agencies, the Japanese group has supported Ukrainian defence startups seeking to enter the Japanese market, including companies developing drone flight-control systems.


Helsing develops autonomous drones equipped with artificial intelligence and designed for military operations. The company produces drones for Ukraine and is also expected to supply systems to the German military.


Helsing is one of Europe’s largest privately held technology startups, with a valuation of more than $1 billion. In July, the company raised $1.8 billion from investors including Goldman Sachs, bringing its valuation to about $18 billion.


The planned cooperation also highlights growing defence ties between Germany and Japan. German Chancellor Friedrich Merz is expected to visit Japan for the first time in late October and is due to meet Japanese Prime Minister Sanae Takaichi. Security in the Indo-Pacific and drone technology are expected to be among the issues discussed.


By Sabina Mammadli