$PDYN 20260220 6.0 PUT$ Sharing my personal views of PDYN potential. 

The collaboration between Palladyne AI Corp. (PDYN), (RCAT) and (PLTR) focuses on integrating advanced, AI-driven, autonomous software into specialized, military-grade, and commercial drones. Their partnership is aimed at enhancing the operational efficiency of unmanned systems for defense and, potentially, civil customers.

Key Collaborations (PDYN with RCAT, PLTR & DPRO)

Integration of "Palladyne Pilot" AI: The core of the collaboration is integrating "Palladyne Pilot" software into RCATs Teal Drones, including the "Teal 2" and "Black Widow" models.

Autonomous Swarm-Drone Flight: In May 2025, the companies completed a landmark test involving three heterogeneous, autonomous drones operating without human intervention, showcasing advanced collaborative, cross-platform capabilities.

Targeting Military/Government Contracts: The partnership aims to make Palladyne AI the standard software for Teal drones, particularly supporting RCAT's participation in the U.S. Army'ss Short-Range Reconnaissance (SRR) program.

Joint Go-to-Market Activities: The companies have aligned to jointly market their integrated AI-drone solutions, aiming to provide "best-in-class" technology for defense, public safety, and commercial applications.

Potential Growth and Future Outlook

Standardization in Defense: If Palladyne Pilot becomes the standard software for the thousands of drones RCAT plans to supply under the US Army's SRR program, it could provide recurring revenue streams for both, representing a "game-changer" for their market position.

Expanding "Family of Systems": The partnership supports the development of a "Family of Systems" (Teal Drones, FANG, etc.), enhancing capabilities in battlefield situational awareness, autonomous object identification, and multi-drone orchestration.

International Sales Growth: Red Cat is expanding its reach through NATO NSPA catalogue listings and new Asia-Pacific contracts, offering a strong, high-growth potential for the integrated hardware-software products.

High-Margin Licensing: The partnership involves a licensing model for PDYN's AI software, which offers higher margins than purely hardware-based solutions.

Increased Demand for Autonomy: As drone warfare evolves, the ability of AI to handle complex tasks (like GPS-denied navigation, which Red Cat is also pursuing via other partnerships like Palantir) is crucial.

Based on recent developments,  which develops AI-driven, platform-agnostic swarming software (IntelliSwarm™ and SwarmOS™) that allows diverse drone platforms to work together autonomously. 

As of early 2026, Palladyne AI has demonstrated successful autonomous flights integrating their AI software with various UAV platforms, often in collaboration with companies like Red Cat and Draganfly. 

Heterogeneous Swarm Flight (2026): Palladyne AI announced successful, fully autonomous flights of heterogeneous drone swarms, where different types of drones act as a single, intelligent, coordinated team.

BRAIN X2 Integration: The software operates on the BRAIN X2 edge-AI flight computer, enabling drones to make decisions in real-time without constant cloud connection.

ISR Mission Scenarios: The drones are designed for Intelligence, Surveillance, and Reconnaissance (ISR) missions, capable of tracking targets autonomously in contested environments.

U.S. Air Force Contracts: Palladyne AI is working with the Air Force Research Laboratory (AFRL) to advance swarm capabilities for cross-domain operations (space, air, maritime, land). 

While specific, high-resolution public photo releases from the 2026 tests are limited due to their defense-focused nature, they typically show small-to-medium UAS platforms operating in coordinated, close-formation flights over test environments, sometimes utilizing Red Cat's Teal drones. 

Risks to Growth: Despite high potential, risks include high operating expenses (OPEX), potential dilution, intense competition in the defense sector, and the need for consistent, scalable contract execution.