Leonardo Unveils ‘Michelangelo Dome’ AI-Powered Shield System

Italian defense company Leonardo It unveiled plans for AI-powered shields for cities and critical infrastructure on Thursday, adding to Europe’s efforts to boost sovereign defense capabilities amid rising geopolitical tensions.

Dubbed the “Michelangelo Dome” in a nod to Israel’s Iron Dome and US President Donald Trump’s “Golden Dome” plans, the system will integrate multiple defense systems to detect and neutralize sea-to-air threats, including missile attacks and swarms of drones.

Leonardo’s Shares were marginally higher on Thursday and up about 77% since January, marking a huge year-to-date gain for defense stocks across Europe as governments in the region ramp up defense spending.

of the UK BAE Systems 42.7% increase compared to Germany from the beginning of 2025 Rheinmetall 148.9% and of France Thales 63.8%.

Leonardo’s dome is built on an “open architecture” system by CEO Roberto Cingolani, which means it can work alongside any country’s defense system.

“In a world where threats rapidly evolve and become more complex — and where defense is more expensive than attack — defense must embrace innovation, anticipation and international cooperation,” Singolani said during an event Thursday evening.

The company aims to fully operationalize the project by the end of the decade.

Airbus CEO Guillaume Fourie told CNBC It said earlier on Thursday that protocols for exchanging data between countries and alliances on the battlefield were still “limited” and that Europe’s “digital battlefield” could take a decade to build.

European governments have quickly committed to increasing defense spending as the US, the bloc’s key ally, has previously threatened Reduce financial support to the region.

In May, the EU announced 150 billion euros ($173.5 million). A program to provide long-term loans to member states for defense procurement and industrial capacity. NATO members committed in June to increase defense and security spending by 5% by 2035.

The unveiling of Leonardo’s new dome system is part of a sector-wide move away from leading defense primes that has seen it “investing from standalone hardware to integrated command architectures,” Morningstar equity analyst Loredana Muharremi told CNBC.

“Modern warfare is won by networks that can integrate every platform into a single decision cycle,” she said. “The winners will be contractors who have a network layer, not a metal one, that captures recurring upgrades and scale.”

Meghan Welch, managing director of Brown Gibbons Lang & Co., told CNBC that Leonardo’s dome system risks include implementation delays and “reliance on European procurement cycles.”

European primes are also competing with an emerging class of defense technology startups in the region.

German AI drone startup Helsing raised 600 million euros in June, doubling its valuation to 12 billion euros, the Financial Times reported. Quantum Systems, which also develops autonomous defense technology, announced on Friday that it had raised its valuation above 3 billion euros after raising 180 million euros.