The AI Security Boom: BBAI Soared 560%—Here’s the Next One Making Moves

Four months ago, we highlighted a tiny AI security stock at $1.50.

Some ignored it. Others paid attention.

Today, BigBear.ai (NYSE: BBAI) is trading around $10 — a 560% surge — and now sits at a $2.4 billion market cap after landing major federal contracts.

Here’s a look at what happened:

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What triggered this massive run? Government spending on AI-driven security.

The U.S. isn’t just investing in AI software—it’s prioritizing AI-powered surveillance, autonomous security, and robotics.

Billionaires Are Betting Big on AI Defense

The AI defense race isn’t just a government initiative—the world’s most powerful tech leaders are all-in.

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    • Amazon (Jeff Bezos) – Secured a UK defense contract with Project Kuiper for space-based surveillance while AWS racks up billion-dollar U.S. military contracts.
    • SpaceX (Elon Musk) – Starlink, originally designed for internet access, is now a Pentagon-backed military asset with a $23M defense contract. Musk’s investors are eyeing a $97.4B OpenAI takeover to push AI-driven military tech further.
    • Anduril (Peter Thiel) – Just landed a $36M AI-powered surveillance deal with U.S. Customs and Border Protection.
    • Palantir (NYSE: PLTR) – Secured a $618.9M contract extension with the U.S. Army for AI military intelligence solutions.

The message is clear: AI-driven defense is the future.

The Next AI Security Play: Knightscope, Inc. (NASDAQ: KSCP)

While the market has focused on software-driven AI, the real opportunity is in AI-powered security robots—an industry projected to reach $160.8 billion by 20321.

Knightscope isn’t just a concept, it’s already deployed across hospitals, casinos, manufacturing plants, apartment complexes, and U.S. government facilities.

And now, Knightscope just made a game-changing move.

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Breaking News: Knightscope’s Expansion Into Federal Security2

      • Deployed at the U.S. Department of Veterans Affairs
      • Secured a Phase 1 contract with the U.S. Air Force
      • Achieved full FedRAMP® authorization for broader federal adoption
      • Now establishing a presence in Washington, D.C., to accelerate government expansion

Knightscope is positioning itself inside the federal contracting system—the same path that propelled BBAI from $1.50 to $10.

This is how early-stage AI defense stocks take off.

With AI-driven security solutions now a national priority, the companies securing government contracts first could potentially see the biggest upside.

Why Washington, D.C. Matters

Knightscope has partnered with Washington Office, a strategy firm specializing in advancing frontier technologies for national security. 

This partnership is designed to expand Knightscope’s federal footprint across multiple sectors, including:

      • Military base security
      • Federal facility protection
      • Transportation security
      • Critical infrastructure defense

“Autonomous security solutions represent the future of public safety,” said Evan Burfield, Co-Founder of Washington Office.

With proven private-sector deployments across healthcare, corporate campuses, and industrial applications, Knightscope is now adapting its AI-driven security technologies to meet federal defense requirements.

To strengthen its foothold, Knightscope is establishing a technology showroom in Washington, D.C., providing federal stakeholders with real-world demonstrations of its AI-powered robots in action.

“Ready or not, the robots are coming to DC,”

“Ready or not, the robots are coming to DC,” said Miles Taylor, former Chief of Staff at the U.S. Department of Homeland Security.

Knightscope, Inc. (NASDAQ:KSCP) is leading the AI security revolution, deploying Autonomous Security Robots (ASRs) that are already patrolling hospitals, schools, commercial real estate, and government buildings—reducing crime by up to 46%.

And unlike human security guards, these robots never sleep, never call in sick, and cost as low as $1 per hour up to $11 per hour – which is significantly less than a security guard at $15 to $35 per hour.

Yet despite securing multi-million-dollar contracts and proving its game-changing tech, Knightscope is still wildly undervalued.

image2 4

Knightscope’s growth trajectory just got a major boost with the recent closing of a $12.1 million financing.3 This capital injection positions the company to scale its operations, advance its technology, and expand its footprint in the security robotics market.

What about Growth Potential?

Knightscope’s innovative Machine-as-a-Service (MaaS) model is setting it up for recurring revenue streams, a gigantic advantage in the rapidly expanding market.

Despite this, Knightscope’s (NASDAQ: KSCP) market cap is a mere $37 million—less than 1/65th of BigBear.ai’s (NYSE: BBAI) $2.4 billion valuation.

This defies logic for a company with growing federal contracts, proven success in AI-powered security, and a foothold in a critical, high-demand market

Just like BBAI before its massive 560% surge, Knightscope is positioning itself for a major breakout as the next big AI security winner.

The company recently announced over 30 new contracts4, solidifying its role as a key player in AI-driven security.

Knightscope continues to expand its technological offerings and market footprint, unveiling groundbreaking advancements such as gunshot detection systems that slash response times to under two seconds, making real-time security intervention a reality.

In addition to rapid technological growth, Knightscope has successfully secured renewals for 7 Autonomous Security Robots (ASRs) and extended Full Service Maintenance (FSM) agreements for 14 K1B clients utilizing its Emergency Communication Devices (ECDs)5

These agreements cover over 930 ECDs, generating more than $1 million in annual recurring revenue—a testament to the increasing demand for Knightscope’s solutions.

Key long-term clients include Dignity Health and a Top 10 Fortune 500 entertainment corporation, both of which have extended their MaaS (Machine-as-a-Service) subscriptions for the 8th consecutive year, reinforcing their trust in Knightscope’s technology. 

Additionally, Westland, a residential community in Las Vegas, NV, renewed its contract for the 4th consecutive year, proving the versatility of Knightscope’s solutions across different industries.

Knightscope’s momentum hasn’t gone unnoticed in the investment world. 

A third independent analyst has initiated coverage, with Lake Street Capital Markets joining Ascendiant Capital Markets and H.C. Wainwright & Co. in providing institutional analysis of the company. 

This growing analyst interest signals a shift in investor sentiment, with Knightscope’s technology and long-term business strategy drawing increased recognition from the financial sector.

Adding to its expansion, three major healthcare organizations have enhanced their security infrastructure with Knightscope solutions, reinforcing its presence in the medical and public safety sectors6. These new deployments include:

      • A Texas hospital upgraded its emergency communication system by integrating Knightscope Emergency Communication Devices (ECDs) with Verizon cellular service, ensuring instant and reliable access to emergency assistance.
      • A hospital deploying a K5 Autonomous Security Robot (ASR) to patrol its parking areas, providing continuous monitoring and real-time intelligence to support security personnel and enhance staff and patient safety.
      • A Department of Health facility in the Northeast investing in Knightscope’s K1 Blue Light Tower, strengthening its emergency response system and improving public safety for staff and visitors.

Beyond these innovations and contracts, what truly sets Knightscope apart from its competitors is its tightly-held share structure and significant insider ownership.

      • CEO William Santana Li personally owns over 140,000 shares, demonstrating his vested interest in the company’s long-term success.
      • 54 institutional investors, including Vanguard Group, Geode Capital Management, and State Street, collectively own over 121,670 shares, further validating confidence in the company’s trajectory.

Knightscope’s growing institutional backing, strategic expansions into federal and healthcare markets, and ongoing technological advancements make it a compelling AI-driven security investment poised for significant growth.

Before we jump into the details about Knightscope’s (NASDAQ:KSCP), let’s discuss how this trending company has nearly unlimited blue sky market potential.

The global need for advanced security solutions has never been greater. 

In 2022, the US faced over a million violent crimes, underscoring the urgency for innovative tools to enhance public safety. 

With over 331 million Americans and just 660,288 full-time law enforcement officers7 alongside approximately one million security guards, that’s roughly one protector for every 200 people.8 

And let’s be honest… That’s NOT a safe statistic at all.

Knightscope’s (NASDAQ:KSCP) ASRs are bridging this gap. Equipped with HD 360-degree cameras, thermal imaging, and public address systems, these robots provide continuous monitoring and real-time response capabilities, redefining the future of public safety.

Knightscope, Inc. (NASDAQ:KSCP) has secured federal authorization through an Authority to Operate (ATO) from FedRAMP, making its technology available to ALL federal agencies9

This company isn’t short on big name clientele.

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In November, Knightscope, Inc. (NASDAQ:KSCP) unveiled a game-changing partnership with Verizon Business. 10

This collaboration isn’t just another agreement—it’s a strategic move that elevates Knightscope’s ASRs and K1 emergency communication devices to a new level of capability and reliability.

By integrating Verizon’s Frontline capability provides Knightscope’s entire technology portfolio to gain priority cellular telecommunication access available only to first responders. Knightscope’s devices now offer enhanced real-time threat detection, faster incident reporting, and improved operational efficiency. These advancements are critical as organizations increasingly look for dependable, scalable security solutions in both the private and public sectors.

The partnership also brings added weight to Knightscope’s K5 ASR, which already holds the prestigious FedRAMP Authority to Operate (ATO) from the US Department of Veterans Affairs.

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K5 ASR

This designation underscores the K5’s compliance with the federal government’s stringent security standards and paves the way for broader adoption across high-security government sites and federal facilities.

With Verizon’s robust connectivity backing its technology, Knightscope, Inc. (NASDAQ:KSCP) is poised to expand its reach and effectiveness, delivering cutting-edge security solutions at scale. 

But the Verizon deal is just one piece of the puzzle.

Since April 2024, the company has signed over 30 new contracts, marking a 128% increase in revenue for 2023. 11

Highlights include:

      • A $1.25 million contract with Rutgers University.12
      • A $1.2 million order for K1 Call Boxes to enhance communication infrastructure.13
      • Deployment of its K5 robot in a pilot program with the NYPD, patrolling a Manhattan subway station – now being redeployed at a undisclosed location in the City.14

Knightscope’s (NASDAQ:KSCP) technology is also trusted by the Huntington Park Police Department, which recently renewed its contract for the sixth consecutive year, citing significant crime reductions in areas like Salt Lake Park.15

Other notable clients include Port Authorities of New York and New Jersey, Penn Entertainment, and the University of Tennessee.

On top of all that, Knightscope, Inc. (NASDAQ:KSCP) just began sales of its Automated Gunshot Detection (AGD) technology,16 slashing response times to dangerous situations down to just two seconds.

According to InvestorPlace, Knightscope could even be a surprise hit among must-own AI stocks.17

Knightscope‘s momentum caught the attention of Ascendiant Capital Markets analyst Edward Woo, who highlighted the company’s Q3 successes as a promising indicator for 2024 in a  recent research report

Now, let’s take a look at some of the reasons Knightscope, Inc. (NASDAQ:KSCP) is a force to be reckoned with in the public safety arena.

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8 Compelling Reasons

to Watch Knightscope (NASDAQ:KSCP) Closely

1

Rapid Revenue Growth: Knightscope, Inc. (NASDAQ:KSCP) has consistently demonstrated strong financial momentum, achieving a 128% year-over-year revenue increase in 2023.18

2

High Market Potential: AI-powered security robots—an industry projected to reach $160.8 billion by 2032.

3

Tight Share Structure and Strong Ownership: Only 3.5 million shares outstanding, significant insider and institutional ownership, including Vanguard Group, Geode Capital Management, and State Street.

4

Innovative Technology: Autonomous Security Robots (ASRs) are equipped with state-of-the-art technology, including HD 360-degree recording, thermal cameras, and public address speakers for enhanced public safety.

5

Major Federal & Private Contracts – 30+ new deals in 2024, including Rutgers University ($1.25M) and K1 Call Boxes ($1.2M).

6

Cost-Effective Business Model: Machine-as-a-Service (MaaS) model Machine-as-a-Service (MaaS) model offers security services at $0.75-$9 per hour, providing long-term recurring revenue streams for Knightscope, Inc. (NASDAQ:KSCP).

7

Experienced Leadership Team: Knightscope, Inc. (NASDAQ:KSCP) is led by a team of seasoned professionals including Co-founder & CEO, Chairman William Santana Li, a former senior executive at Ford Motor Company.

8

Future Expansion and Technological Innovation: Continuously developing new technologies including drone integration, enhanced emergency systems, and expanding gunshot detection capabilities.

Tapping into a $283 Billion Market

The global security robots market is projected to reach $283 billion by 203019—driven by the urgent need for autonomous, AI-driven security solutions that can operate 24/7, reduce costs, and enhance situational awareness in real time.

As security threats evolve, governments and corporations aren’t just looking for data—they need action. This is where AI-powered security robots come in.

Knightscope, Inc. (NASDAQ:KSCP) isn’t waiting on policy shifts or theoretical applications—it’s already on the ground, actively patrolling hospitals, airports, corporate campuses, and federal buildings. 

With strong institutional backing and a float of only 2 million shares, Knightscope’s stock is well-positioned for significant movement as it continues to expand its market presence and secure new contracts.

How Knightscope Stacks Up in the Security Tech Space

1

Security technology has come a long way, but most players in the space still rely on humans to take action. 

Unlike traditional security firms that rely on stationary cameras, human guards, or reactive solutions, Knightscope, Inc. (NASDAQ:KSCP) is pioneering proactive, AI-driven, 24/7 security. Here’s how it compares to some of the biggest names in the industry:

      • Axon Enterprise (NASDAQ:AXON) – Axon is known for Tasers, body cameras, and VR training systems, helping law enforcement document and respond to crime. Knightscope’s robots take a different approach—deterring crime before it happens with real-time AI-driven surveillance and proactive security measures.24
      • BigBear.ai Holdings (NYSE:BBAI) – BigBear.ai specializes in data analytics for predictive security, giving agencies the ability to assess risks. But data alone doesn’t prevent crime. Knightscope, Inc. (NASDAQ:KSCP) doesn’t just analyze threats—it actively patrols, detects, and alerts authorities in real time, providing a continuous security presence.
      • OSI Systems (NASDAQ: OSIS): OSI focuses on stationary security screening systems, ideal for checkpoints and controlled environments.25 But what about open, unpredictable spaces? Knightscope’s robots operate dynamically, moving through facilities and public areas, extending security beyond fixed locations.
      • Palantir Technologies (NASDAQ: PLTR) – Palantir’s AI intelligence tools are used by defense agencies for high-level data aggregation and analysis. But software alone can’t physically intervene. Knightscope’s AI-powered security robots bring that intelligence to the field—serving as both an autonomous deterrent and a first line of defense.

On top of that, Knightscope’s (NASDAQ:KSCP) MaaS model creates long-term cash flow and unlocks enormous growth potential. This isn’t just a sale; it’s an ongoing partnership that ensures reliable revenue year after year.

And it’s not just about the numbers. Knightscope’s robots have already proven their value in the field—helping solve real crimes, from tracking down hit-and-run suspects to identifying armed perpetrators.

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Meet the Minds Guiding Knightscope’s Security Revolution

The same team that founded, funded, grew, and listed Knightscope, Inc. (NASDAQ:KSCP) over the last decade is leading the company today. They plan to continue driving growth organically over the next two to three decades, all while achieving their goal of making America safer. Among the talented roster are:

image7William Santana LiChairman and CEO

At 28, William Santana Li became the youngest senior executive at Ford Motor Company worldwide. With over 30 years of experience, he has a rich history in the global automotive industry and has founded and led multiple startups. At Ford, Li held various business and technical roles, including Director of Mergers & Acquisitions. He later secured $250 million in financing to found and serve as COO of GreenLeaf LLC, a Ford subsidiary. Li also founded Carbon Motors Corporation, focusing on developing the world’s first purpose-built law enforcement patrol vehicle.
image3 2Mercedes SoriaEVP and Chief Intelligence Officer / CISO

With over 15 years of experience in systems development and software architecture, Soria is a technology professional who previously led IT strategy at Carbon Motors Corporation and is former Deloitte. Her expertise drives Knightscope’s intelligence and technological advancements.
image6Apoorv S DwivediEVP and Chief Financial Officer

Dwivedi brings extensive finance and corporate strategy experience. He served as CFO of Nxu, Inc. (NXU), leading it to a successful Nasdaq listing. His background includes key roles at Cox Automotive, Workiva, and General Electric, where he honed his skills in finance operations and corporate growth.
image10Aaron J LehnhardtEVP and Chief Design Officer

Lehnhardt, Knightscope’s Chief Design Officer since 2015, previously led design at California Motors and co-owned Lehnhardt Creative LLC. His work spans advanced vehicle design, military projects, and innovative personal mobility solutions.

This experienced leadership team drives Knightscope’s vision and success, leveraging decades of expertise to revolutionize public safety with cutting-edge technology.

RECAP: 8 Reasons

to Pay Close Attention to Knightscope, Inc. (NASDAQ:KSCP)

1

Rapid Growth: 128% revenue increase in 2023, generating $12.8 million.

2

Market Potential: AI-powered security robots—an industry projected to reach $160.8 billion by 2032.

3

Advanced Technology: ASRs with HD cameras and thermal imaging; AGD system reports gunshots within two seconds.

4

Tight Share Structure and Strong Ownership: With only 2.7 million shares outstanding and significant insider and institutional ownership, Knightscope is positioned for potential stock growth.

5

Major Federal & Private Contracts– 30+ new deals in 2024, including Rutgers University ($1.25M) and K1 Call Boxes ($1.2M).

6

Cost-Effective Model: Machine-as-a-Service (MaaS) costs $0.75 to $9.00 per hour versus $15 to $85 for human guards.

7

Experienced Leadership: Led by former Ford executive William Santana Li, and the same team of experienced founders.

8

Future Innovations: Integrating drones, enhancing KEMS, and expanding AGD technology.

As we’ve highlighted, the need for advanced security solutions has never been more urgent.

Knightscope, Inc. (NASDAQ:KSCP) is leading the charge in AI-driven security technology, securing key federal contracts and expanding its presence in critical infrastructure, corporate security, and national defense.

This is more than just a company—it’s a game-changer with a multi-billion dollar market at stake, redefining public safety with cutting-edge autonomous solutions.

Opportunities like this don’t come often.

With growing institutional backing, government partnerships, and groundbreaking innovation, Knightscope (NASDAQ:KSCP) is positioned for exponential growth.

Add Knightscope to your watchlist today—before the rest of the market catches on.

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