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Sounds like they want the software AND the hardware developed for that figure. No problem :)

And then they slightly change the software to actually track <insert random military item here> instead of mosquitos and they would have a perfect defence weapon.

Sadly that is the problem with a lot of R&D in this kind of area.

Imagine a search & rescue robot able to navigate in hazardous environment, being able to identify a human being, opening doors, to reach them, to deliver medicine, or a transport-possibility.

And now imagine an mountainous area in Afghanistan and the robot not delivering first-aid...

The R&D is the same. That's why DARPA is funding exactly these kind of challenges. Or am I wrong here.

While you're working on the hardware could you get it to make the coffee too?

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