[Featured Stock] Palantir 'Lookalike' KonanTech Gains Attention from Musk-Led Defense Reform... AI Drone Technology Highlighted

Conan Technology is showing strong performance. It appears to be influenced by Elon Musk, who was appointed co-head of the Department of Government Efficiency (DOGE), advocating for replacing manned fighter jets with unmanned drones and significantly cutting the defense budget. Recently, Conan Technology was selected as the executor of the project titled “Development of AI Pilot Using Digital Twin and Demonstration of UAV Integration,” which was announced by the Defense Acquisition Program Administration and the Agency for Defense Development.

As of 9:42 AM on the 26th, Conan Technology’s stock price rose by 1,600 KRW (7.08%) compared to the previous trading day, trading at 24,200 KRW.

On the same day, Musk posted simultaneously on his personal and the Department of Government Efficiency X accounts, criticizing the Ministry of Defense’s budget waste. Concerns about conflicts of interest are growing, as companies close to Trump, such as Musk’s SpaceX and Peter Thiel’s Palantir, could benefit from the defense budget cuts.

The stock price of Palantir Technologies, an AI data analytics company, has recently surged. Palantir, an AI data company, has traditionally received orders mainly from the military and intelligence agencies, but recently has been receiving many orders from private companies as well, leading to a sharp increase in sales.

Conan Technology, a specialist in artificial intelligence (AI) software, is leading the construction of defense AI systems and driving innovation in future defense technology. As part of the “2023 Defense Innovation Companies 100” technology development support project, the goal is to rapidly transition from manned weapon systems to intelligent unmanned systems by developing and demonstrating AI pilot technology that can be mounted on unmanned aerial vehicles.

The AI pilot technology originated from the U.S. Department of Defense’s Defense Advanced Research Projects Agency (DARPA) Air Combat Evolution (ACE) project. It is cutting-edge technology with demonstration cases only held by the U.S. Air Force worldwide. Conan Technology passed the “Manned-Unmanned Combined Combat Performance” evaluation in October last year and was selected as one of the “Defense Innovation Companies 100.”

It supports the evolution of the Air Force’s technology roadmap in response to changing battlefield environments and lays the foundation for core technologies in unmanned vehicle development and the establishment of Manned-Unmanned Teaming (MUM-T) systems. Upon completion, it is expected to significantly contribute to future defense technology innovation by securing essential technology development and demonstration capabilities for autonomous unmanned vehicles and MUM-T system construction.

CEO Kim Young-seom said, “It is meaningful to be in charge of the unmanned fighter demonstration project led by the AI pilot. Since it may be mounted on domestically developed fighter jets, we will do our best to change the landscape of future air combat and simultaneously strengthen our leadership in building defense AI systems.”

Conan Technology was established in 1999 as an AI software company. Search, text mining, and chatbot services based on text analysis technology account for 86% of its sales. Video analysis, voice recognition, and generation services based on video analysis technology account for 14% of sales. In August 2023, it developed its own large language model (LLM), ConanLLM. SK Telecom holds a 20.66% stake, and Korea Aerospace Industries holds 7.78%.

Earlier this year, Shinhan Investment Corp. noted Palantir’s 1,100-fold growth over 15 years based on defense references and introduced Conan Technology as possessing similar text and video analysis technologies to Palantir.