HII has signed long-term, performance-based production agreements with Path Robotics and GrayMatter Robotics that could be worth up to $900 million over seven years, marking one of the largest industrial commitments yet to autonomous welding and physical-AI manufacturing in shipbuilding.

The agreements are tied to HII’s High-Yield Production Robotics, or HYPR, program. HII said the companies will develop and deploy advanced automation across U.S. Navy shipbuilding programs, including aircraft carriers, submarines, destroyers, amphibious ships, future frigates and unmanned surface vessels.

Path Robotics is expected to lead autonomous welding work, while GrayMatter Robotics focuses on robotic sanding, surface preparation, coating, inspection and related fabrication processes. The companies will first develop, validate and qualify high-precision production techniques for autonomous welding, grinding, blasting, painting, assembly and inspection. Those processes will then be integrated into an autonomous production line.

HII emphasized that funding is not unconditional. The seven-year awards are contingent on Path and GrayMatter meeting technology readiness, manufacturing readiness, cost, schedule and quality performance milestones. Delivery is expected to begin with small steel structures before expanding to larger units and modules.

Eric Chewning, HII executive vice president of maritime systems and corporate strategy, said the collaboration is meant to define robotics that can adapt to the complexity, mix and size of shipbuilding. HII said the program also supports distributed shipbuilding capacity and helps address workforce shortages. In 2026, HII plans to outsource more than 2.5 million hours of shipbuilding work, a 30% increase from 2025.

Path Robotics CEO Andy Lonsberry said HYPR validates the company’s view that physical AI can scale shipbuilding capacity in demanding production environments. Path’s systems use its Obsidian physical-AI model, including mobile welding platforms designed to move beyond fixed robotic cells.

GrayMatter CEO Ariyan Kabir said the agreement is a milestone for bringing “Factory SuperIntelligence” to a major shipbuilder by combining physical AI with autonomous production systems that learn, adapt and improve over time.

For welding and fabricating operations, the deal signals that autonomous welding is moving from automotive-style repeatable parts toward high-variability, high-consequence assembly environments. The near-term commercial question is whether the partners can qualify Navy-grade weld quality and throughput at scale; if they do, HII’s supplier network could become a template for robotics in heavy fabrication, defense manufacturing and large structural steel work.