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Third Eye Signs MOUs With US Firm Aelyon for Potential $40 Million Deals
The Israeli technology company Third Eye, also known as Ein Shlishit, announced on Tuesday, October 20, 2026, that it has signed two strategic memoranda of understanding with the American company Aelyon. The partnership, which could be worth up to $40 million, focuses on the development and commercialization of advanced autonomous systems integrating Third Eye's artificial intelligence and electro-optical technologies.
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What happened
- 01The Israeli technology firm Third Eye, or Ein Shlishit, signed two strategic memoranda of understanding with the US company Aelyon.
- 02The potential partnership is valued at up to $40 million and is structured across three phased development and production installments.
- 03A new subsidiary, Power Capabilities, will develop the autonomous systems using Third Eye's artificial intelligence and electro-optical technologies.
- 04The newly established subsidiary has already filed 19 patents in Israel covering autonomous system control, cyber, and architecture.
- 05The agreement includes future royalties on sales of 3% to 5%, with Bizportal reporting a minimum annual royalty of $2 million.
- 06Aelyon holds options to acquire the subsidiary for at least $20 million, or for 3% of its shares according to TheMarker.
- 07Following the announcement on Tuesday, Third Eye's stock price surged by 11% according to TheMarker, and by approximately 14% according to Ice.
To facilitate the project, Third Eye is establishing a dedicated subsidiary, named Power Capabilities (also referred to as Hakoach Yecholot Ltd.). Third Eye will grant this subsidiary exclusive licenses for its software intellectual property alongside usage rights for its hardware, sensor, and analytics technologies. The new entity has already filed 19 patents in Israel related to the control, cyber, and management of autonomous systems.
The potential $40 million deal is structured in three phases and is contingent on Aelyon securing capital. The first phase involves $5 million within 180 days for architecture, integration, and prototype development. The second phase includes a $15 million order, and the third phase allocates $20 million for transitioning to mass production and commercial deployment. The agreement also includes royalties of 3% to 5% on net sales, with a minimum annual royalty of $2 million, according to Bizportal, or a flat 5% royalty according to TheMarker.
Under the agreement, Aelyon holds options to acquire the subsidiary for at least $20 million, or for 3% of its shares according to TheMarker. Following the announcement, Third Eye's stock price surged on the stock market, with Ice reporting an increase of approximately 14% and TheMarker reporting an 11% rise.
Summarized by baba from the reports of 3 newsrooms. Updated
Latest report: Bizportal. Read Bizportal’s originalThe coverage
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