Archer Acquiring eVTOL Startups in Significant Deal With Boeing

Archer Aviation is acquiring three aerospace subsidiaries from Boeing: autonomous air-taxi developer Wisk Aero, military drone manufacturer Insitu and airspace software company SkyGrid. As part of the transaction, Boeing will receive a stake in Archer and collaborate with the company on technology.

Investors responded positively, sending Archer shares up more than 20%. The acquisition also transforms Archer from a pre-revenue electric vertical takeoff and landing (eVTOL) startup into a company with a profitable defense business generating more than $200 million in annual revenue.

Insitu is the biggest prize. The defense drone company has produced more than 3,500 uncrewed aircraft systems used by the armed forces of 35 nations. Wisk brings years of autonomous eVTOL development backed by Boeing. Archer says Wisk is the only company to have designed, built and flown six generations of eVTOL aircraft, completing more than 1,700 flight tests. SkyGrid adds aircraft-agnostic airspace management software.

Financial terms were not disclosed. The transaction is expected to close by the end of 2026, subject to regulatory and antitrust review.

Archer describes the acquisition as a move toward a “physical AI” platform combining autonomous aircraft, eVTOLs and drones with its ZEE AI foundation model. More importantly, the deal accelerates a defense strategy Archer began in 2024 when it partnered with Anduril to develop a hybrid VTOL military aircraft and raised $430 million. The companies recently unveiled Halo/Thunder, an autonomous VTOL aircraft intended for defense and commercial applications. Insitu gives that effort established revenue, manufacturing capabilities and military contracts.

Archer’s commercial eVTOL program will continue. The company has already begun piloted operations of its Midnight aircraft and is the exclusive air-taxi provider for the 2028 Los Angeles Olympics.

The acquisition is particularly notable because Wisk and Archer were once legal adversaries. Wisk sued Archer in 2021 over alleged trade-secret theft. The companies settled in 2023, with Boeing investing in Archer and the companies agreeing to collaborate on autonomous flight technology. Three years later, Archer is acquiring Wisk from Boeing.

The deal could accelerate Archer’s commercial eVTOL ambitions by providing additional technology, engineering expertise and financial stability. However, there is also a potential downside. Archer’s growing defense business could become a larger strategic priority, potentially diverting attention from its promise of commercial electric flight.

The acquisition gives Archer substantially more resources and a profitable operating business, but it also changes the company’s identity. The key question is whether the defense business will help finance the transition to commercial eVTOLs or ultimately become the company’s primary focus.

Archer completed piloted city-to-city Midnight flights in preparation for operations later this year under the FAA’s eVTOL Integration Pilot Program (eIPP).

EVinfo.net’s Take: Will Archer Move More Into Defense?

EVinfo.net hopes Archer will remain grounded in commercial eVTOLs, and not go too far into defense contracts.

We believe the administrations’ focus on defense is overblown. Military.com reported the Department of Defense wants a $1.5 Trillion defense budget. Considering the administration’s mishandling of the Iran war, we believe its best to hold off on new funding until a more capable administration takes over. It’s mishandling of clean transportation also proves it is not capable.

The U.S. Department of Transportation and the Federal Aviation Administration made genuinely encouraging news, announcing eight proposals selected for the brand-new Advanced Air Mobility and Electric Vertical Takeoff and Landing (eVTOL) Integration Pilot Program (eIPP). The program spans 26 states, involves leading aircraft manufacturers and state partners, and represents one of the largest real-world testing environments for next-generation aircraft anywhere in the world. It is forward-thinking, collaborative, and exactly the kind of initiative that positions America as a leader in aviation innovation.

So the question worth asking is: why can’t that same wise decision-making extend to the rest of federal transportation, public health, and climate policy?

Because while the administration deserves credit for the eIPP, it has foolishly moved in the opposite direction on nearly every other front that touches clean transportation, public health, and the climate.

Building a strong clean transportation sector helps American military as well.

Investments in clean transportation can strengthen the military by reducing dependence on fossil fuels, lowering operating costs and improving energy security. Electric vehicles, hybrid systems, renewable energy and more efficient transportation technologies can reduce the amount of fuel that military forces need to transport and store, which can be a major logistical burden and a vulnerability in contested environments.

Electric and hybrid vehicles can also provide quieter operation, potentially improving tactical mobility, while advanced batteries and vehicle-to-grid technologies can provide backup power for bases and critical equipment. Investing in commercial clean transportation also helps accelerate improvements in batteries, electric motors, charging infrastructure and autonomous systems that can have military applications. By supporting a broader clean transportation ecosystem, governments can strengthen domestic manufacturing and supply chains while reducing exposure to volatile global fuel markets.