Morgan Stanley is strongly promoting: Embodied AI hides a new blue ocean behind it. This unmanned ship new star will become a disruptor.

Recently, Morgan Stanley released a research report continuing to focus on Embodied Artificial Intelligence (AI) field, and turned its attention to the startup company Saronic, which is focused on developing Unmanned Surface Vessels (USVs) for the US Navy. The firm stated that due to factors such as the trend towards machine automation, insufficient manufacturing capacity in the US, and reevaluation of defense spending, the disruptive potential of the defense complex is garnering attention. With rapid development of global military technology, USVs are becoming a key force in future maritime defense, and Saronic is expected to play an important role in future maritime competition. USVs refer to vessels that can operate autonomously or be operated remotely. Currently, USVs have been widely used in modern warfare. Established in 2022, Saronic aims to help the US Navy and allies build a hybrid fleet where numerous autonomous systems can collaborate with manned platforms. According to Pitchbook, Saronic was valued at $4 billion in its Series C funding in February 2025, which was four times higher than its valuation in the Series B funding in June 2024. Since its establishment, Saronic has raised $845 million in funding, with investors including 8VC, Andreessen Horowitz, General Catalyst, and other well-known venture capital companies. Currently, Saronic has successfully developed three small USVs: Spyglass, Cutlass, and Corsair. These vessels have different functions and can perform a variety of tasks from reconnaissance to attack. The company's ultimate plan is to expand into the medium and large autonomous vessel field for defense applications. Saronic has also achieved significant results in its collaboration with the US Navy. In 2024, the company participated in US Navy exercises with its unmanned vessels, where Cutlass demonstrated the ability to extend the launching point for drones, and Spyglass showcased its capability in detecting and tracking targets in the open sea. Furthermore, to meet the growing demand, Saronic is actively expanding its manufacturing capacity. In February 2025, the company acquired a 420,000 square foot facility in Austin, Texas, with plans to increase its workforce from 300 to 600 employees by the end of 2025. Saronic also plans to build the "Port Alpha" shipyard as its main manufacturing center in the future, further expanding its production capacity. However, Saronic faces tough competition. Traditional defense giants such as L3Harris, General Dynamics Corporation, Textron Inc., and Huntington Ingalls Industries mainly develop large USVs, but Morgan Stanley predicts that with changing market demands, these companies may also enter the small USV market and directly compete with Saronic. Overall, Morgan Stanley believes that the future of mobile machines is undoubtedly moving towards automation, which could bring significant changes to various industries including consumer, business, and defense. The marine and aviation sectors are key areas that investors are currently overlooking. In fact, due to the more open and low-density nature of the operating environments in marine and aviation industries, and their predictability, developing automation systems for these sectors may eventually prove to be easier than developing autonomous cars.