Annual innovation and Us Raat (2025) Hindi Web Seriesentertainment festival SXSW is changing up its funding streams for next year's events, with the organization announcing it would stop taking sponsorship money from military affiliates.

The organization's brief official statement (found in its updated Music Showcase FAQ) reads:

After careful consideration, we are revising our sponsorship model. As a result, the U.S. Army, and companies who engage in weapons manufacturing, will not be sponsors of SXSW 2025.

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In March, several notable musicians and celebrities condemned the festival for its ties to the U.S. Army and its historic backing of Israeli militarization, with more than 80 acts and panelists dropping out of the 2024 event in total.

Activists and attendees called out SXSW sponsors RTX (formerly Raytheon), Collins Aerospace, and BAE Systems, all weapons manufacturers, in addition to the U.S. Army's involvement (it was deemed a "Super Sponsor" of the festivities). "The defense industry has historically been a proving ground for many of the systems we rely on today," SXSW explained at the time. "These institutions are often leaders in emerging technologies, and we believe it’s better to understand how their approach will impact our lives."

Among those speaking out against the ties was Irish political rap group Kneecap, which wrote in a statement on X that they would be dropping out due to "solidarity with the people of Palestine and to highlight the unacceptable deep links the festival has to weapons companies and the U.S. military who at this very moment are enabling a genocide and famine against a trapped population."

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In addition, local Austin, Texas, activist groups coordinated protest shows and an anti-SXSW rally featuring several of the boycotting artists.

SXSW responded to the criticism at the time, saying the organization “fully respect[ed] the decision these artists made to exercise their right to free speech.”