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EXACTO Smart Bullet From DARPA
EXACTO (Extreme Accuracy Tasked Ordnance) is a DARPA program to "revolutionize rifle accuracy and range by developing the first ever guided small-caliber bullet".
(EXACTO smart bullet video
The Extreme Accuracy Tasked Ordnance (EXACTO) system seeks to improve sniper effectiveness and enhance troop safety by allowing greater shooter standoff range and reduction in target engagement timelines. The objective of the EXACTO program is to revolutionize rifle accuracy and range by developing the first ever guided small-caliber bullet. The EXACTO 50- caliber round and optical sighting technology expects to greatly extend the day and nighttime range over current state-of-the-art sniper systems. The system combines a maneuverable bullet and a real-time guidance system to track and deliver the projectile to the target, allowing the bullet to change path during flight to compensate for any unexpected factors that may drive it off course.
I first saw this idea in a graphic form in Michael Crichton's 1984 movie Runaway. The smart bullet is a five-inch fire-and-forget self-tracking bullet-missiles.

(Smart bullet dissected)
"Jack, look at this. The back half is all solid propellant. Valves for directional control ... look, it's all electronic."
From DARPA Extreme Accuracy Tasked Ordnance.
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