Jane Edwards 
- HII has signed agreements with two robotics firms for potential shipbuilding work
- HII intends to award up to $900 million over seven years, contingent on performance milestones
- The 2026 Navy Summit on Aug. 27 will explore AI, shipbuilding, autonomy and more
HII has signed performance-based production agreements with GrayMatter Robotics and Path Robotics to advance the development and deployment of physical artificial intelligence automation across U.S. Navy shipbuilding programs.
As the Navy continues advancing modernization efforts across its fleet and combat systems, the Potomac Officers Club will host the 2026 Navy Summit on Aug. 27. Government and industry leaders will discuss artificial intelligence, digital engineering, autonomous systems, network modernization, shipbuilding and other priorities shaping the future maritime force. Sign up now to join the conversation.
The company said Thursday the agreements were signed under its High-Yield Production Robotics, or HYPR, initiative and cover work supporting aircraft carriers, submarines, amphibious ships, destroyers, future frigates and unmanned surface vessels.
In March, HII introduced the HYPR initiative to integrate industrial robotics and digital quality technologies into production processes.
What Is the Scope of the Performance-Based Production Agreements?
Under the agreements, HII plans to award GrayMatter Robotics and Path Robotics up to $900 million in shipbuilding work over a seven-year period, with the amount tied to how well each company meets technology and production readiness milestones.
The arrangement unfolds in two phases. During the development phase, the two robotics companies will work with HII to build out and test automated processes for tasks such as welding, blasting, grinding, coating, assembly and inspection, with the goal of folding these techniques into a fully autonomous production line that meets Navy certification requirements. Once that line clears qualification, HII would begin routing shipbuilding orders to GrayMatter Robotics and Path Robotics based on their cost, schedule and quality track record, beginning with smaller steel components before moving into larger units and modules.
The agreements sit within a larger framework HII calls the HYPR Program, which also sets up shared governance and joint development structures across the three companies. HII framed the effort as part of a broader shift toward distributed shipbuilding, noting it expects to shift more than 2.5 million hours of shipbuilding work outside its own shipyards in 2026 — roughly 30 percent more than it outsourced the year before.
What Did HII, GrayMatter Robotics & Path Robotics Officials Say About the Agreements?
Eric Chewning, executive vice president of maritime systems and corporate strategy at HII, said the company is making generational investments to build new shipbuilding capability and expand capacity.
“This collaboration represents a strategic investment in the future of American shipbuilding — strengthening industrial base resilience, expanding distributed shipbuilding capacity, feeding critical materials to our shipyards and workforce, and unlocking new production efficiencies essential to delivering the Navy’s growing fleet,” Chewning stated.
Andy Lonsberry, CEO and co-founder of Path Robotics, said the company has long believed physical AI could change manufacturing.
“HYPR is a powerful validation of our vision — that physical AI can scale shipbuilding capacity in one of the world’s most demanding production environments,” Lonsberry said. “Together with HII, we’re proud to be building the shipyard of the future, unlocking distributed shipbuilding, and establishing a blueprint for strengthening America’s maritime industrial base.”
Ariyan Kabir, CEO and co-founder of GrayMatter Robotics, said the agreement marks a milestone in bringing the company’s Factory SuperIntelligence technology to HII.
“By combining Physical AI with autonomous production systems, we’re helping create manufacturing that learns, adapts, and improves over time, making complex shipbuilding faster, more resilient, and more scalable,” Kabir said. “Together with HII and Path Robotics, we’re laying the foundation for the next generation of American industrial capability and helping ensure that the United States can build critical assets at the speed and scale our national security demands.”
How Do the Agreements Build on HII’s Broader HYPR Initiative?
The new agreements follow a series of steps HII has taken to bring robotics and physical AI into its shipbuilding operations. HII and GrayMatter Robotics previously partnered to assess the use of physical AI in shipbuilding to improve throughput, reinforce the maritime industrial base and support the workforce. Separately, HII and Path Robotics signed a memorandum of understanding to explore integrating Path’s physical AI welding technology into shipbuilding operations aimed at accelerating throughput and strengthening the industrial base.
HII has also outlined plans for a new unmanned surface vessel assembly facility in Louisiana. The expanded assembly site at Breaux Brothers Enterprises in New Iberia will support serial production of ROMULUS USVs.
