Epstein Shadow Haunts Germany's USD3.5B Drone Deal
The proposed agreement with Stark Defense would mark the Bundeswehr's first large-scale acquisition of loitering munitions, a milestone in German military modernization. But the deal is now mired in controversy, threatening to unravel before ink is put to paper.
German Defense Minister Boris Pistorius has demanded that Stark Defense provide full transparency regarding Thiel's influence over the company before any contract is finalized — a move widely interpreted as an acknowledgment of the public and parliamentary pressure building against the purchase.
At the center of the storm is Thiel's dual identity: co-founder of AI surveillance giant Palantir and, according to US Justice Department records from the Epstein Library, a frequent correspondent and associate of the disgraced financier between 2014 and 2019. The two men exchanged emails and held in-person meetings during that period, reportedly discussing investment strategies.
Further deepening the concerns, Epstein allegedly received exclusive investment opportunities through Thiel's venture capital firm Valar Ventures. More alarming to German security officials are allegations that Epstein may have brokered introductions between Thiel and individuals with links to Russian intelligence — a claim that has sent shockwaves through Berlin's defense establishment.
The Green Party's defense spokesman Sebastian Schafer, spearheading the legal challenge against the contract, has been unequivocal. He argued that Thiel's stake in Stark Defense cannot be allowed to threaten European democracies.
In a bid to contain the fallout, the German Defense Ministry submitted a classified briefing to parliamentarians, asserting that Thiel holds only a passive minority stake via Thiel Capital, exercises no operational control over the firm, and that the founding team and employees hold the majority share. The remaining equity is reportedly distributed among approximately 50 separate shareholders.
Those assurances have done little to quiet critics.
The controversy risks overshadowing the genuine military significance of the systems under consideration. Stark Defense's Virtus drone — a vertical takeoff munition capable of penetrating 80 centimeters (31.4 inches) of tank armor and becoming battle-ready within ten minutes — is paired in the deal with the Helsing HX-2, a 12-kilogram (26.4-pound) catapult-launched system engineered for rapid, agile strike operations. Both platforms employ sophisticated AI-driven targeting, though German authorities have stipulated that human operators must retain final authorization over any strike decision.
Should the contract proceed, it would fundamentally transform the Bundeswehr's offensive capabilities. The acquired systems are earmarked for deployment with the 45th Panzer Brigade, stood up in Lithuania on April 1, 2025, as part of NATO's reinforced eastern flank posture.
With the approval window set for February 25, the clock is ticking. Pistorius has framed the resolution of Stark Defense's ownership questions as a matter of national security, while The Green Party continues pressing Berlin, insisting that institutional safeguards alone cannot neutralize the political risks posed by a figure of Thiel's stature and associations.
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