German defense companies are drawing battle lines as the nation rearms, with the old guard pushing for traditional heavy weaponry while startups promote more modern kit solutions such as AI-enabled drones.

Chancellor Friedrich Merz has vowed to create Europe's strongest conventional army with outlays of hundreds of billions of euros, accelerating a buildup that began after Russia's 2022 full-scale invasion of Ukraine.

The rush to rearm, mirrored across Europe, has also been fueled by pressure from U.S. President Donald Trump on NATO allies to spend more on defense, as well as by concerns about Washington's commitment to the continent's security.

However, where these funds should be flowing is hotly debated.

A crop of German tech and defense startups put the ca

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