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Micro-Cap 'War Unicorn' Merlin Soars After Advancing AI Pilot For C-130 Military Plane
Aerospace and defense technology firm Merlin jumped in premarket trading after announcing that its AI-powered autonomous flight software for the C-130J Super Hercules cargo plane, developed with U.S. Special Operations Command, is moving toward formal testing.
Merlin wrote in a press release earlier that its AI-powered autonomous flight software has "successfully completed" the critical design review for the C-130J, adding the "milestone positions the program to enter a structured formal test campaign, including aircraft-level testing, reflecting a disciplined systems engineering progression from design through verification."
The Merlin AI Pilot will automate flight operations for the C-130J from takeoff to touchdown and is framed as an "operating system" for autonomous aviation.
Merlin has completed the Critical Design Review for its C-130J autonomy program with @USSOCOM. CDR is the milestone where our government customer reviews the detailed design of the system and accepts it is mature enough to move toward the aircraft. We cleared it.
Learn more… pic.twitter.com/8OgM9H5it8
The C-130 is the workhorse cargo plane of the U.S. military. The upgraded version, by slapping a "J" on the end, includes:
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Newer turboprop engines
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Six-blade composite propellers
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Digital cockpit and avionics
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Reduced crew requirements
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Better range, climb, speed, and fuel efficiency than older C-130s
Shares of the micro-cap defense company jumped 28% in premarket trading.
Merlin also pointed out that it is "rapidly advancing its AI-powered autonomy stack onboard the C-130J, with potential pathways for expansion across other Department of War or commercial aviation platforms."
The rise of "war unicorns" has been an important theme this year as the Department of War resets its procurement program toward startups and away from big legacy primes.
Goldman analysts also recognize the rise of defense startups and sat down with Palmer Luckey's Anduril earlier this week. Read the note here.
Tyler Durden Fri, 06/05/2026 - 11:50ISS Astronauts Told To Prepare For Possible Evacuation As Air Leak Worsens
NASA senior adviser and press secretary Bethany Stevens wrote on X that astronauts aboard the International Space Station have quickly shifted into SpaceX's Dragon spacecraft and are prepared to evacuate if needed, after cracks and leaks in the Zvezda service module transfer tunnel appeared to worsen.
"The Zvezda service module transfer tunnel, known as PrK, has suffered from cracks and leaks for some time, and has been mitigated by Roscosmos as much as possible to date. The cracks have always been a concern that NASA watches very closely," Stevens said.
According to NASA, the Zvezda service module is 43 feet long and contains living quarters, life support systems, communications systems, electrical power distribution systems, data processing systems, flight control systems, and propulsion systems.
The Zvezda service module transfer tunnel, known as PrK, has suffered from cracks and leaks for some time, and has been mitigated by Roscosmos as much as possible to date. The cracks have always been a concern that NASA watches very closely. NASA and Roscosmos have been working…
— Bethany Stevens (@NASASpox) June 5, 2026Stevens continued, "The cracks have always been a concern that NASA watches very closely. NASA and Roscosmos have been working to determine the root cause of the cracks, and Roscosmos manages the issue through operational mitigation measures and periodic partial-repair efforts."
Out of caution, NASA ordered all four SpaceX Crew-12 members, along with NASA astronaut Chris Williams, to be on high alert inside Dragon during the repair.
NASA said it continues to work with Roscosmos and other station partners toward a more permanent fix for the long-running issue.
Reuters cited a senior NASA official who said the air leak has been monitored over the last few months but significantly worsened earlier this week, increasing from a loss of one pound of air per day to two pounds per day.
Tyler Durden Fri, 06/05/2026 - 11:20