Meet the startup that just won the Pentagon’s first AI defense contract

The Ministry of Defense has awarded its first generative AI defense contract Jericho Securitymarking a strategic shift in military cybersecurity. The $1.8 million Small Business Technology Transfer (STTR) Phase II contract announced via AFWERXis tasking the New York-based startup with developing cutting-edge cybersecurity solutions for the Department of the Air Force.

“This is one of the first generative AI contracts awarded in the defense space, and marks a significant milestone in how seriously our military is addressing AI-based threats,” Sage Wohns, CEO of Jericho Security, told VentureBeat in an exclusive interview.

How AI-powered phishing attacks target military personnel

The company’s approach aims to simulate complex, multi-channel phishing attacks that reflect real-world scenarios. “In today’s landscape, phishing campaigns are not limited to just emails; it involves coordinated efforts across multiple platforms, such as text messages, phone calls and even video calls,” Wohns explains, describing attacks that link multiple forms of communication together to deceive targets. .

What sets Jericho’s technology apart is its focus on human vulnerability – widely considered the weakest link in cybersecurity. The company claims that up to 95% of data breaches stem from human error. Their platform creates personalized security training programs based on individual risk profiles, using generative AI to simulate advanced attacks including deepfake impersonations and AI-generated malware.

Deepfake attacks and drone pilot targeting: the new frontier of military cybersecurity

The contract comes at a critical time, as military personnel are increasingly targeted. “There was a highly publicized spear-phishing attack targeting Air Force drone pilots using fake user manuals,” Wohns revealed, highlighting how the company helped evaluate vulnerabilities through attack simulation and specialized training.

For a young company competing in the crowded cybersecurity market, winning a contract with the Department of Defense represents a major validation. The deal positions Jericho Security to expand beyond its commercial roots into the lucrative government sector, where cybersecurity spending continues to grow amid escalating threats.

Military contracts often require strict security measures. Wohns emphasized that Jericho maintains “military-grade cybersecurity standards,” including end-to-end encryption and isolated secure environments for handling sensitive military data.

The next generation of AI defense: predator and prey model

Unlike traditional cybersecurity approaches that respond to known threats, Jericho Security uses what Wohns calls a “predator-and-prey” model. “We started with attack simulation, which gave us a continuous stream of real-time data to improve both offensive and defensive capabilities,” he said. This dual approach allows their AI systems to evolve with emerging threats, rather than just react to them.

The Air Force contract, executed through AFWERX – the Department of the Air Force’s innovation arm – is part of a broader initiative to accelerate military adoption of private sector technology. AFWERX has awarded more than 6,200 contracts with a value of more than $4.7 billion since 2019working to strengthen the U.S. defense industrial base and accelerate technology deployment.