A new NASA feature details how the agency's University Student Research Challenge helped launch AG3 Labs, a startup now manufacturing thousands of military training drones per month. Co-founder Gavin Gardner, a former Michigan State student who participated in the NASA program, said the experience was a critical booster for the company.
NASA on Wednesday published a feature on Michigan-based drone company AG3 Labs, tracing its origins to the agency's University Student Research Challenge (USRC). The feature highlights how the USRC's unique combination of technical grants and entrepreneurial training helped co-founder Gavin Gardner turn student projects into a business.
Gardner participated in two USRC-backed projects while at Michigan State: the Aerial Intra-city Delivery Electric Drones (AIDED) project in 2021, which explored drones hitching rides on public buses, and the Laser Energized Aerial Drone System (LEADS) in 2023, which investigated using lasers to power drones in flight.
In the NASA article, Gardner said the program taught him that building the product was only half the battle. "The other half is selling the product in a way that everyone else can understand what you're doing and not talking in nerdy, engineering ways," he said.
Gardner graduated in spring 2025 with a master's degree. He co-founded AG3 Labs in late 2024 with his brother Gryson Gardner and other USRC alumni Ryan Atkinson and Matt Atkinson. The company builds drones for military training exercises and began with an award from the U.S. Army, which led to further contracts. According to NASA, the company can now produce thousands of drones a month.
Steven Holz, NASA's USRC manager, said he hoped the program serves as a launchpad for careers like Gardner's. "We are proud to see the success of USRC alumni," Holz said in the feature. "We hope that every team that participates in the program sees, like Gavin, how they can grow technically, entrepreneurially, and use the opportunity as a launchpad for their own innovative careers."
Analysis
Why This Matters
- The success of AG3 Labs demonstrates a measurable return on investment for federal research programs that combine technical development with entrepreneurship training.
- It highlights a talent pipeline from public universities directly into the defense industry, meeting growing demand for low-cost drone systems for military readiness.
- The model offers a case study for how other agencies can structure grants to de-risk the transition from academic research to commercial operation.
Background
NASA's University Student Research Challenge (USRC) provides grants to student teams to conduct aeronautics research. Unlike traditional grants, the program requires teams to raise funds through crowdfunding, forcing students to develop budgets, manage finances, and communicate their work to a non-technical audience. Gavin Gardner's interest in engineering was sparked by a middle school trip to Space Camp, leading him to Michigan State where he joined a drone hobbyist group before entering the USRC program.
Key Perspectives
Gavin Gardner: Said the technical work was demanding, but navigating the business side of the research was the bigger challenge. He described the USRC as a "booster" that amplified his career trajectory, giving him a foundation for founding AG3 Labs.
Steven Holz: The NASA USRC manager said the program aims to build a future workforce. He expressed pride in seeing alumni like Gardner succeed and hopes the program serves as a launchpad for innovative careers.
What to Watch
- How AG3 Labs scales under its U.S. Army contracts and whether it expands into commercial or allied defense markets.
- Whether the USRC produces further startups among its current and past teams, validating the model for broader federal adoption.
- The timeline for Gardner and his team's next steps in the military drone space, given their rapid ramp-up to mass production.
Checked
11 claims in this story checked against 1 source: 6 supported.
Show each claim
- SupportedAG3 Labs was born from the University Student Research Challenge.NASA: “His NASA experience served as a foundation for the creation of AG3.”
- SupportedThe program’s dual technical and business focus accelerated the company’s trajectory, according to co-founder Gavin Gardner.NASA: “Gardner credits his experience with USRC, especially when it came to learning more about the business side of running a technical operation, with helping create the opportunities for success he and his team are experiencing today.”
- Not in the sourcesNASA’s feature is about a Michigan-based drone company.NASA: “Four co-founders of AG3 Labs –from left Matt Atkinson, Gavin Gardner, Ryan Atkinson, and Gryson Gardner – show off the military training drones their company builds at a U.S. Army event at Camp Grayling in Michigan.”
- Partly supportedNASA published the feature on Wednesday.NASA: “Last Updated Oct 28, 2026”
- Partly supportedAG3 Labs is now manufacturing thousands of military training drones per month.NASA: “today their production capability enables thousands of drones to be built each month.”
- SupportedGardner said: “The other half is selling the product in a way that everyone else can understand what you're doing and not talking in nerdy, engineering ways.”NASA: ““The other half is selling the product in a way that everyone else can understand what you’re doing and not talking in nerdy, engineering ways.””
- Partly supportedThe USRC’s combination of technical grants and entrepreneurial training was unique and helped Gardner turn student projects into a business.NASA: “That’s why demonstrating both engineering and entrepreneurship skills are major tentpoles of NASA’s University Student Research Challenge (USRC), an initiative that provides grants to teams of college students”
- Partly supportedGardner graduated in spring 2025 with a master’s degree.NASA: “As his graduation in the spring of 2025 with a master’s degree approached”
- SupportedGardner co-founded AG3 Labs in late 2024 with his brother Gryson and USRC alumni Ryan and Matt Atkinson.NASA: “As his graduation in the spring of 2025 with a master’s degree approached, Gardner took the initial steps in late 2024 to co-found with his brother and other USRC alumni AG3 Labs”
- SupportedAn initial U.S. Army award led AG3 Labs to further contracts.NASA: “An initial award from the U.S. Army led to more contracts”
- SupportedSteven Holz said: “We are proud to see the success of USRC alumni,” and hoped participating teams would use the program as a launchpad for their careers.NASA: ““We are proud to see the success of USRC alumni,” Holz said. “We hope that every team that participates in the program sees, like Gavin, how they can grow technically, entrepreneurially, and use the opportunity as a launchpad for their own innovative careers.””
