Palladyne AI (NASDAQ:PDYN), a U.S.-based defense and industrial technology company delivering embodied AI-powered collaborative autonomy solutions, advanced avionics, precision-manufactured components, UAVs, and advanced aerospace engineering services, today announced that the U.S. Air Force has exercised a contractual option on its STRATFI (Strategic Funding Increase) contract, adding $2.9 million in new funding and increasing the total contract value to over $10.6 million. The option exercise reflects the Air Force’s continued satisfaction with the performance and progress of Palladyne AI’s Palladyne IQ™ embodied AI architecture for autonomous robotic systems.