Navy Veterans’ Startup Raises $2.3M to Decode Submarine Sounds with AI

Spear AI, founded by former U.S. Navy officers, has raised $2.3 million in its first funding round to advance its artificial intelligence platform that interprets complex underwater acoustic data collected by submarines and sensors. Unlike traditional AI trained on labeled images or text, Spear AI focuses on “passive acoustic data” — sounds captured underwater — to help submarine operators distinguish between harmless noises like whales or rain and potential threats such as enemy vessels. The Washington-based company, co-founded by Michael Hunter, a former Navy SEAL analyst, and John McGunnigle, an ex-nuclear submarine commander, builds both hardware sensors for buoys and vessels and software tools to organize and label the raw sound data, preparing it for AI analysis. This month, the U.S. Navy awarded Spear AI a $6 million contract to enhance its data-labeling platform, confirming its strategic value.Founded in 2021 and previously self-funded, Spear AI employs around 40 people. The new funding from AI-focused Cortical Ventures and private equity firm Scare the Bear will double its workforce and expand its commercial ventures, including monitoring underwater pipelines and cables. CEO Hunter explained the importance of private capital in product development:“We wanted to build the product and actually get it out the door before the contract came in to get it. The only way you can do that is with private capital”. Spear AI’s breakthrough technology promises to revolutionize underwater data interpretation, strengthening national security and opening new commercial opportunities.