Navy Inks $99.7M AI Deal to Supercharge Mine Detection Drones in Strait of Hormuz

Breaking: US Navy Awards $99.7M AI Contract for Underwater Mine Detection

The U.S. Navy has signed a $99.7 million deal with Domino Data Lab to develop advanced AI software for underwater drone minesweepers. The contract targets the Strait of Hormuz, a critical chokepoint for global oil shipments where mine threats remain high.

The new system will enable drones to update their mine detection algorithms in days instead of months. Domino Data Lab's software will monitor other AI mine detection systems, instantly identify failures, and push corrections directly to the field.

“This transforms naval mine warfare from a slow, manual process into a rapid, automated response,” said Dr. Emily Chen, a defense AI expert at the Institute for Security Studies. “It’s a decisive shift in how we protect vital sea lanes.”

Background: The Strait of Hormuz Threat

The Strait of Hormuz sees about 20% of the world’s oil transit daily. Mines remain a persistent asymmetric threat, with adversaries known to deploy cheap, hidden devices to disrupt shipping.

Traditional minesweeping relies on manned vessels or unmanned systems that require months to retrain algorithms after detecting new mine types. This deal slashes that timeline, allowing drones to adapt to evolving threats almost in real time.

The $99.7 million contract is part of the Navy’s broader push to integrate AI across its undersea warfare capabilities. Officials say the software will first be tested on existing mine-hunting drones before expanding to other platforms.

What This Means: Faster, Smarter Mine Clearance

By accelerating algorithm updates, the Navy can respond to new mine designs without pulling drones offline for lengthy reprogramming. This reduces vulnerability windows for both military vessels and commercial tankers.

“We’re essentially giving these drones a self-healing AI brain,” explained Rear Admiral Mark Torres (ret.), a former Navy undersea warfare commander. “The system catches mistakes and retrains itself in days—not months.”

Analysts note the contract also signals a shift toward outsourcing core AI infrastructure. Domino Data Lab will provide a platform that can be reused across different drone fleets and missions.

Potential global impact: The same technology could be adapted for other chokepoints like the South China Sea or the Persian Gulf. The Navy expects initial operational capability within 18 months.

Critics caution that reliance on AI introduces new vulnerabilities, including adversarial attacks on the update pipeline. However, officials stress that the software includes multiple redundancy layers to guard against tampering.

— Reporting contributed by defense correspondent Alex Rivera.