Meet the startup that won the Pentagon’s very first AI defense contract

Jericho Security has been awarded the Department of Defense’s first generative AI defense contracts, marking a significant shift in military cybersecurity. The $1.8 million Small Business Technology Transfer Phase II contract, announced by AFWERX, requires the New York-based start-up to develop advanced cybersecurity solutions for the Department of the Air Force.

Sage Wohns, CEO at Jericho Security told VentureBeat exclusively in an interview that this is one of the very first generative AI contracts in defense.

How AI-powered attacks target military personnel.

This company’s approach focuses on simulating multi-channel, complex phishing campaigns that mirror real-world situations. Wohns explained that phishing campaigns today are not limited to emails, but also involve coordinated attempts on multiple platforms, such as text messages, phone conversations, and even videos calls.

Jericho’s technology is unique because it focuses on human vulnerability, which is widely considered to be the weakest link when it comes to cybersecurity. The company claims up to 95% data breaches are caused by human error. Their platform creates customized security training programs based upon individual risk profiles. Generative AI is used to simulate sophisticated attacks, including deepfake imitations and AI-generated malicious code.

Deepfake attacks, drone pilot targeting and the new frontier in military cybersecurity

This contract comes at an important time as military personnel are increasingly targeted by attackers. Wohns revealed that a spear-phishing campaign was launched against Air Force drone pilots, using fake user guides. The company assisted in evaluating vulnerabilities through attack simulations and specialized training.

Landing a Defense Department contract is a major validation for a young cybersecurity company in a crowded market. The deal allows Jericho Security’s commercial roots to expand into the lucrative government market, where cybersecurity spending is growing amid increasing threats.

Many military contracts require strict security measures. Wohns stressed that Jericho maintains “military-grade standards” for cybersecurity, including end-toend encryption and isolated secure environment for handling sensitive data.

The next generation of AI Defense: Predator-prey model

Jericho Security uses what Wohns refers to as a “predator-prey” model. “We began with attack simulations, which gave us a constant stream of real-time information to enhance both offensive as well as defensive capabilities,” he explained. This dual approach allows AI systems to evolve along with emerging threats, rather than simply responding to them.

This Air Force contract is executed through AFWERX, the innovation arm of the Department of the Air Force. It is part of a larger initiative to accelerate the military adoption of private-sector technology. AFWERX awarded more than 6,200 contracts totaling $4.7 billion in value since 2019. The company is working to strengthen U.S. Defense Industrial Base and speed up the technology deployment.