The ArmaLite AR-18 is a gas-operated assault rifle chambered for 5.56×45mm NATO ammunition. The AR-18 was designed at ArmaLite in California by Arthur Miller, Eugene Stoner, George Sullivan, and Charles Dorchester in 1963 as an alternative to the Colt AR-15 design, a variant of which had just been selected by the U.S. military as the M16. A semi-automatic version known as the AR-180 was later produced for the civilian market. While the AR-18 was never adopted as the standard service rifle of any nation, its production license was sold to companies in Japan and the United Kingdom, and it is said to have influenced many later weapons such as the British SA80,[1][2][3] the Singaporean SAR-80 and SR-88,[4] the American Adaptive Combat Rifle, the Belgian FN F2000,[5] the Japanese Howa Type 89[6] and the German Heckler and Koch G36.[7][8][9]

Soon after the adoption of the 7.62×51mm NATO M14 rifle in 1957, the U.S. Army's Continental Army Command (CONARC) began an investigation of small-caliber, high-velocity (SCHV) rifles as an offshoot of the military's existing research program, Project SALVO. ArmaLite and Winchester Arms were solicited by CONARC to provide prototype automatic rifles chambered for high-velocity centerfire .22 rounds. The ArmaLite AR-15 was a scaled-down version of the 7.62mm AR-10, which had appeared too late to be a serious contender against the M14 for adoption by the US Army. Its competitor was the Winchester .224 Light Rifle,[10] a "Carbine" Williams prototype carbine design in a .22 high velocity round which was similar to, but not interchangeable with, the .223 Remington (5.56×45mm). During the protracted U.S. military trials of the AR-15, ArmaLite's corporate owners Fairchild essentially gave up on the design, and sold the AR-15 production rights to Colt. Fairchild also spun off ArmaLite as an independent company, allowing the new owners to buy all of the company's designs except for the AR-10 and AR-15. When the U.S. military ultimately selected the AR-15 as the M16, ArmaLite could no longer profit from its adoption.

The Armalite AR-16 appeared in the later 1950s. The AR-16, a 7.62mm NATO selective-fire rifle, was Eugene Stoner's final design for ArmaLite. The AR-16 and its predecessor, the AR-12 were designed by Stoner in response to demands by the military forces of smaller, less developed nations for a less expensive, yet state-of-the-art selective-fire military rifle that unlike the AR-10 and AR-15, could be produced inexpensively of heavy-gauge sheet metal using automatic screw machines, lathes, and presses.[11][12] The AR-12 originally featured a direct-impingement (DI) gas operation system, but this was changed to a more conventional short-stroke gas piston in the AR-16 after ArmaLite sold the production rights to the DI system to Colt Firearms.[11] The AR-16 had a short, 15-inch barrel, hinged wooden butt, and weighed 8.75 pounds empty; only three examples were built.[12] Eugene Stoner left ArmaLite in 1961, shortly before Fairchild divested itself of ownership.[13]

The U.S. military's later adoption of the AR-15 gave legitimacy to its 5.56mm cartridge, and ArmaLite sought to develop a competing design chambered in 5.56mm that did not infringe on the Colt license agreement. With Stoner gone, it was decided to scale down the AR-16, and ArmaLite's new chief designer, Arthur Miller, embarked on the project. The resulting 5.56mm design appeared in 1963 and was named the AR-18. Miller later received U.S. Patent 3,246,567 for the rifle in 1969.