June 30th 2025

INNOVATION

Defense Tech Boom: Autonomous Drones, Lasers, And Hypersonic Missiles

As some of the market’s biggest tech names lose steam, investors are turning to less crowded corners of the high-tech sector where growth and disruption remain alive and well. Global defense stocks have rocketed higher in 2025, particularly those focusing on artificial intelligence applications and other cutting-edge defense technology. These weapons are changing the way wars are fought and are having an equally significant impact on the way the Defense Department spends its enormous budget. The implications are both exciting and frightening.

Big Tech joins the military, with Meta, Palantir and OpenAI in front

Since Donald Trump's presidential election victory, major tech companies have abandoned years of policies restricting military work and sought out lucrative defense contracts and deeper connections with the Pentagon.

Executives from Meta, OpenAI, and Palantir will be sworn in Friday as Army Reserve officers. OpenAI signed a $200 million defense contract this week. Meta is partnering with defense startup Anduril to build AI-powered combat goggles for soldiers.

All while Trump is pushing a $1 trillion defense budget — the largest in U.S. history.

The Geopolitical Arms Race: Navigating Defense Sector Opportunities in China-Australia Tensions

The Asia-Pacific region is at a geopolitical inflection point. As China's defense budget surges and U.S. allies like Australia face pressure to boost military spending, the region is becoming a testing ground for strategic investments in defense technologies.

From cybersecurity to critical minerals, the sector is poised for growth—but not without risks tied to volatile geopolitical posturing. Here's how investors can parse the landscape.

INVESTMENT

The Global Defense Industry in One Chart

This graphic breaks down the biggest publicly-traded defense companies by market capitalization, as of May 20, 2025.

16 are located in the U.S., while 17 are based in Europe

Ask Sage nabs more funding from the Department of Defense

Ask Sage landed the seven-figure partnership after an earlier $49 million contract to bring its generative AI tools to the military.

Europe is pouring money into defense. Can US firms reap the reward amid trans-Atlantic tension?

At Paris Air Show, US executives said they see multiple paths for enlarging their share of the European defense market, including coproduction deals, mergers and acquisitions, and the creation of European-based subsidiaries.

T. Rowe Price Joined Whopping $2.5 Billion Round for Defense Tech Startup Anduril

Global asset manager T. Rowe Price was among investors who poured a massive $2.5 billion into Anduril Industries earlier this month, valuing the defense tech startup at $30.5 billion. The Series G funding round was led by Peter Thiel’s San Francisco-based Founders Fund, which pumped in $1 billion.

Established defense contractors lend tech startups a helping hand

Oracle launched a new defense ecosystem to support companies that lack the funds or infrastructure to jump right into a Pentagon contract.

Kinetica eyes $150 million to fuel Israel’s defense-tech surge

The VC fund counts top Israeli generals, Palantir’s Joe Lonsdale, and U.S. security leaders among its backers and advisors.

TECHNOLOGY

Too Much Tech Can Ruin Wargames

The U.S. defense community has developed a healthy obsession with innovation. AI, modeling and simulation, machine learning — these are the buzzwords driving conversations about the future of warfare. But when it comes to integrating these technologies into one of the military’s most valuable tools for strategic insight — the wargame — the defense community would do well to proceed with caution.

Thales and Kongsberg to set up 'major' defense communications joint venture

French defense tech giant Thales and Norwegian defense supplier Kongsberg Defence & Aerospace have signed an agreement to set up a joint venture company in secure communications.

War Games in the Subcontinent: How Geopolitical Tensions Are Fueling Defense Sector Profits

The India-Pakistan rivalry has once again reached a boiling point, with the June 28 Waziristan attack reigniting accusations of cross-border terrorism and military posturing. This isn't just a geopolitical flashpoint—it's a goldmine for investors in defense and security technologies.

Silicon Valley has a long history in the military

Silicon Valley's on-again, off-again cycle of engagement with the U.S. military is swinging hard toward defense work.