The U.S. Navy recently selected a subsidiary of Palladyne AI Technologies to develop a low-cost air-launched missile capable of hypersonic speeds as part of a push to develop more affordable, high-performance weapons.
Kansas-based GuideTech was acquired by Palladyne AI in November 2025 and received the U.S. Navy contract in March 2026. The company will now build what is known as the Air-Launched Rapid Response Missile (or ALRRM).
The system is designed to reach speeds in excess of Mach 4 (four times the speed of sound, or approximately 3,069 miles per hour) while traveling over 350 nautical miles (over 400 miles) at high altitudes.
“The 2025 National Security Strategy clearly states that the United States must create ‘a clear and urgent need for next-generation missiles with cost-effective, high-performance strike capabilities’ for the U.S. military,” said Ben Wolff, CEO and President of Palladyne AI.
Mach 4 missile drive
Hypersonic systems are designed to travel faster than the speed of sound and face extreme aerothermal conditions, with surface temperatures often exceeding 1,832 degrees Fahrenheit (1,000 degrees Celsius).
Therefore, they use exotic, rare, and expensive materials to maintain structural integrity. However, compared to many advanced hypersonic systems, ALRRM aims to provide similar performance at a fraction of the cost.
This is reportedly in line with recent U.S. defense priorities emphasizing affordability and capability. According to the company, the missile will use an air-breathing solid fuel ramjet (SFRJ) engine.
It will enable sustained high-speed cruise without the need for onboard oxidizer. As a result, the design will be lighter and have a longer range than traditional rocket-based systems.
“As identified by the U.S. Navy, and as evidenced by our recently awarded contract, the ALRRM system is designed to meet this need—delivering near-hypersonic speeds and range at a fraction of the cost,” Wolf continued.
The ALRRM is expected to carry a 150-pound warhead while maintaining a compact size to meet strict weight and size constraints. According to the company, this will ensure compatibility with modern fighter aircraft, particularly fifth-generation platforms that require built-in stealth-compatible munitions.
compact high speed weapon
Palladyne AI said the missile’s combination of speed, range and payload in a smaller design makes it a versatile option for deep strike missions in contested environments.
“We believe there is currently no other missile in the U.S. military that combines the speed, range and payload capabilities of the ALRRM at this size and price point, creating a new strike class for fifth-generation fighters with stealth, near-hypersonic speeds and deep theater strike capabilities,” Wolf concluded in a press release.
The Navy’s interest in ALRRM reflects a larger shift toward scalable and cheaper weapons that can be deployed at scale. The company said affordability is becoming a key factor in procurement decisions as global competition intensifies, especially in the hypersonics space.
In recent years, Palladyne AI has become a key player in advanced defense technology powered by artificial intelligence. “Palladyne AI’s embedded artificial intelligence is designed to operate in complex, contested and high-risk environments, enabling distributed tasking, human-machine interaction decision-making, reduced communication resiliency and multi-domain coordination,” the company said.
