Eva Live forms Eva Defense to tap hundreds of billions in drone M&A

Eva Live Inc. created a defense-technology subsidiary to acquire drone and autonomous-systems companies, betting AI can capture a slice of a market projected to exceed hundreds of billions of dollars.

Eva Live Inc. formed Eva Defense Inc., a wholly owned subsidiary targeting acquisitions in drone and autonomous systems, as the AI company pivots into a defense market projected to exceed hundreds of billions of dollars over the next decade.

"Artificial intelligence will fundamentally transform the defense and autonomous systems industries," said David Boulette, chief executive officer of Eva Live. "The creation of Eva Defense represents a major strategic milestone for our Company."

Eva Defense will target companies with proprietary technologies, intellectual property portfolios, and established customer relationships across drone platforms, surveillance systems, advanced sensors, and robotics. The subsidiary marks Eva Live's first wholly owned entity, extending its AI capabilities beyond digital advertising automation and intelligent quoting into defense technology. The company reported $17 million in revenue for 2025, up 83% year over year, though it swung to an $8.6 million net loss in the first quarter of 2026.

The defense technology sector remains highly fragmented, presenting consolidation opportunities for well-capitalized buyers. Eva Live has access to a $250 million shelf registration and a $100 million at-the-market equity program with Maxim Group LLC to fund potential deals. The stock rose 12% ahead of the announcement before giving back some gains, trading at $2.49 with a market capitalization of about $91 million.

A Fragmented Sector Beckons

The global drone market is projected to exceed hundreds of billions of dollars over the coming decade as governments and defense organizations adopt autonomous technologies for security, intelligence gathering, and logistics. Eva Live's management sees the convergence of AI, autonomy, robotics, and advanced sensing as one of the most significant investment opportunities in the technology sector.

"The convergence of AI, autonomy, robotics, and advanced sensing technologies is creating one of the most exciting investment opportunities of our generation," Boulette said. "Our objective is to build Eva Defense into a significant participant within this ecosystem through strategic acquisitions and partnerships."

Financing the Pivot

Eva Live's expansion into defense comes as the company navigates a transition from its core AI marketing business. The Las Vegas-based company generated $3.9 million in revenue in the first quarter of 2026, down from the quarterly run rate implied by its full-year 2025 results, while posting a net loss of $8.6 million compared with a year-earlier profit. The company's $250 million shelf registration, filed in March 2026, and its $100 million ATM program provide potential firepower for acquisitions, though any equity issuance would dilute existing shareholders.

The stock has declined 85% from its 52-week high of $18.00, reflecting investor skepticism about the company's valuation and strategic direction. The Eva Defense announcement represents the latest in a series of AI-driven expansion moves, following the launch of the NeuroServer web application in February and the Eva Brain AI marketing platform.

This article is for informational purposes only and does not constitute investment advice.