At the end of World War II, the U.S. was a powerhouse in shipbuilding, boasting eleven public naval shipyards and more than 60 private-sector shipyards. Tides shifted over the next several decades with those numbers dwindling due to increased labor and materials costs, evolving geopolitical needs, policy changes, and economic pressures. As of 2016, the number of U.S. shipyards capable of building large, oceangoing military and commercial vessels was down to six, and annual output of ships declined from 60 to seven, with that decline continuing since then. In 2022, the U.S. built only five oceangoing commercial ships compared to China’s 1,794. 

The U.S. military does not have the resources to revive our country’s shipbuilding capabilities, and it's not economically feasible for private shipyards to take on the challenge alone. This poses an imminent and grave threat to U.S. national security. With increasing tensions across the global geopolitical landscape, the need for advanced naval capabilities has never been more urgent. The U.S. Navy is responsible for ensuring maritime security and freedom of navigation in contested waters, but the global maritime domain is under growing threat from adversaries who are investing heavily in advanced naval technologies. Consider this staggering disparity: between 2010 and 2018, China invested more than $132 billion into its shipyard industry, while the U.S. invested just $77 million. The reality is unsettling: Chinese shipyards are launching ships at a pace that the U.S. industry simply cannot match today.

To maintain technological superiority at sea, the U.S. is looking at the role of autonomous ships. Autonomous ships can be a force multiplier, enhancing operational capabilities while reducing risk to human lives.

Today, we’re thrilled to introduce Blue Water, which is developing autonomous ships to address the full scope of the challenges facing the industry today. Compared to traditional manned ships, autonomous ships are more cost-effective and can be produced at a faster rate. Led by CEO and Co-Founder Rylan Hamilton, who previously founded and led 6 River Systems and is a former engineering officer of surface warfare with the U.S. Navy, Blue Water launches from stealth with $14M in seed funding from Eclipse, Riot, and Impatient Ventures to tackle this critical problem.

A Team that Brings Together the Best in Robotics and Naval Experience 

The team at Blue Water is comprised of proven founders and Navy veterans whose collective expertise in robotics, engineering, and military operations makes them uniquely qualified to tackle the complex challenges of building autonomous ships that can operate in the highly demanding environments of naval warfare and defense. The company’s founders come from some of the most influential organizations in technology, including Amazon Robotics and iRobot, and together bring extensive Naval experience. Not only have they worked on cutting-edge technology in the private sector, but they also have hands-on experience navigating the intricacies of defense contracting and the unique needs of the U.S. military. This combination of expertise positions Blue Water to deliver highly scalable, reliable, and cost-effective solutions to market.

As a former U.S. Navy engineer and successful founder in the automation space, Rylan understands the challenge ahead from every angle – he’s been on ships and in factories and has worked across engineering, operations, and production. I first met Rylan ten years ago when Eclipse invested in his company 6 River Systems, which was later acquired by Shopify in 2019. During our partnership, it was clear he had all the attributes we look for in a founder – tenacious, fearless, passionate, and perhaps most importantly, perceptive. While some founders attack a problem through a narrow lens based on only what they know to be true or have experienced personally, Rylan has an innate ability to assess a problem from all sides, establish a holistic vision for what a solution should look like, and then execute a plan to bring that solution to fruition. With his proven track record building companies in complex spaces, there was no question when I had the opportunity to work with him again on Blue Water and believe he is well on his way to redefine the maritime industry.

A New Era of Maritime Innovation

This investment is a huge step forward in ensuring that the U.S. Navy stays at the forefront of innovation and deterrence efforts on the open sea. By augmenting the Navy’s existing fleet of crewed destroyers, submarines, and aircraft carriers with a squadron of unmanned vessels, the U.S. will once again regain its footing as a global power at sea that supersedes its adversaries​. Blue Water is already laying the foundation for scaling production of its autonomous ships. In less than a year since the company was founded in 2024, the team has made significant progress on a prototype – designing a 100+ ton test vessel, developing a full stack autonomy suite, and testing it all on salt water. 

Military applications are only the beginning. We believe this technology has far-reaching implications for bringing long-awaited innovation to the broader maritime industry: The commercial opportunity for autonomous ships extends to cargo, offshore energy, fishing, luxury transportation, and more. The launch of Blue Water puts a stake in the ground for realizing the  future of the maritime industry, and I look forward to partnering with this company to push the envelope in developing cutting-edge technologies that will shape the future of naval warfare and trade.

More on today’s news from Bloomberg.

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