HII, the largest U.S. Navy shipbuilder, signed production agreements on August 6, 2026 with Path Robotics and GrayMatter Robotics worth up to $900 million combined over seven years. The robots will weld, grind and paint warship hulls under a new program called HYPR.
Key takeaways
- Deal worth up to $900M, milestone-based, spanning seven years
- Partners: Path Robotics and GrayMatter Robotics — physical AI companies
- Scope: welding, grinding, blasting, painting, assembly and inspection
- Robots will cover carriers, submarines, destroyers, frigates and unmanned surface vessels
- HII plans to outsource 2.5M+ shipbuilding hours in 2026 — up 30% year over year
Automating the shipyard under the HYPR program
The agreements are part of HII's HYPR (High-Yield Production Robotics) program. Instead of buying finished robots, HII pays for milestones reached — a performance-based model.
The company plans to outsource more than 2.5 million shipbuilding hours in 2026, up 30% from a year earlier. Automation is meant to relieve welders and fill a labor gap in U.S. shipbuilding.
The contract in numbers:
Two companies, two approaches to physical AI
Both partners build physical AI, but their emphasis differs. Path Robotics builds systems for autonomous welding. GrayMatter Robotics bets on Factory SuperIntelligence — software that learns and adapts processes over time.
| Company | Focus | CEO |
|---|---|---|
| Path Robotics | Autonomous welding, physical AI for manufacturing | Andy Lonsberry |
| GrayMatter Robotics | Factory SuperIntelligence, autonomous systems | Ariyan Kabir |
From Navy qualification to large modules
Deployment has two stages. First, technology validation and U.S. Navy qualification. Then production — from small steel structures to progressively larger sections and ship modules. The scope covers welding, grinding, blasting?blasting: Cleaning a surface with an abrasive stream (e.g., grit) to strip rust and old coatings before painting., painting, assembly and inspection.
We are defining a new approach to robotics in shipbuilding: automation that can adapt to extreme levels of complexity, mix, and size.
Eric Chewning, Executive Vice President, HII.
Why it matters
U.S. shipyards have struggled for years with a shortage of skilled welders and delays in Navy ship construction. A contract of this scale shows physical AI moving out of the demo phase and into heavy defense manufacturing.
The performance-based model is key here — HII does not risk capital on hardware that might fail in shipyard conditions. If the program succeeds, it could become a template for high-complexity, low-volume sectors where classic automation has failed.
What's next?
- Technology validation and U.S. Navy qualification before series production
- Production starts with small steel structures, then larger sections and ship modules
- HII plans to outsource 2.5M+ shipbuilding hours in 2026 (up 30% YoY)
