Internal agency documents indicate the Federal Aviation Administration is negotiating a 9.9 percent equity stake in Air Space Intelligence. The company is currently under contract to develop an AI-powered air traffic management system for the agency, a project valued at nearly 876 million dollars.
This potential investment arrives as the FAA faces pressure from lawmakers regarding the rollout of the SMART air traffic tool. Critics have questioned the oversight, safety testing, and training associated with the system, which is already operational in the Washington, DC area. Lawmakers recently requested a formal pause on the technology’s expansion until further documentation is provided.
The move to acquire equity in a vendor presents unique regulatory questions. Industry observers are noting that the FAA would effectively become a shareholder in a private firm that it is also responsible for certifying and supervising. While the government has pursued similar stakes in other technology sectors, such an arrangement in the critical sphere of air traffic control represents a significant departure from standard agency practice. The FAA has not yet confirmed the final status of the negotiations.