Defense Tech Scaling New Heights With Incoming Administration

OF NOTE

Here are some of the latest developments in defense technology:

--Italian Navy's New Helicopter Dock: The Italian Navy has commissioned the Trieste, a multi-purpose landing helicopter dock, expanding its naval capabilities.

--Zumwalt Destroyer Upgrades: The USS Zumwalt has been upgraded with a hypersonic launcher, enhancing its strategic capabilities.

--Autonomous Submarine Technology: Anduril Industries demonstrated its Dive-XL autonomous submarine, targeting applications in the U.S. defense market.

--Drone and Anti-Drone Advances: Saab introduced a drone trainer that serves as both an asset and a simulated threat for military exercises. Additionally, an Estonian startup is testing a new "Shahed-Killer" missile designed to counter specific drones in Ukraine.

-- AI Integration in Defense: Palantir and Anduril are collaborating to merge artificial intelligence capabilities for defense applications, highlighting the increasing focus on AI-driven innovations.

--Cyber and IT Security: The Pentagon is advancing its approach to counter threats from converging IT and operational technology (OT), addressing vulnerabilities in critical infrastructure.

INNOVATION

Future of US defense depends on culture shift prioritizing innovation

Congress and DOD must recalibrate their defense technology acquisition approach, senior members of the House Armed Services Committee argue in this op-ed.

From forced landings to stuffed animal heads, headhunter Peterson Conway is defense tech’s wildest power broker

Conway has recruited for some of the buzziest defense and hard tech firms in Silicon Valley over the last decade, like Palantir and Mach Industries.

Palantir and Anduril reportedly building a tech consortium to bid on defense contracts

Two big defense tech players, Palantir and Anduril, are talking to tech companies including SpaceX, OpenAI, Saronic, and Scale AI about forming a consortium to bid on Pentagon contracts, according to a report in the Financial Times.

Mission Integration: Shaping the Future of Defense Tech

With the rapid acceleration of AI, drones and cyber threats, today's missions are fast-moving and complex.

Defense Tech Developments to Watch in 2025

The new Fulcrum strategy sets up the Defense Department to shore up artificial intelligence, zero trust and the workforce.

TECHNOLOGY

Tencent, CATL added to US Department of Defense’s list of companies working with China’s military

Inclusion on the Pentagon list does not result in any immediate sanctions, but it could affect the reputations of the companies named and hinder their commercial progress, particularly if they want to do business in the United States.

New monopoly? Inside VC tech’s overthrow of the primes

Venture capital (VC)-backed defense tech companies like Anduril, Palantir, and Scale AI have quickly risen to prominence in the weapons industry, increasingly beating out “Big Five” defense contractors like Lockheed Martin, Boeing, and RTX (formerly Raytheon) for military contracts.

And now directly challenging traditional weapons contractors’ grip over the industry, Anduril and Palantir are forming a consortium with fellow defense tech upstarts including SpaceX, OpenAI, Saronic, and Scale AI to jointly bid for military contracts, according to reporting from the Financial Times.

Defense Tech Scaling New Heights With Incoming Administration

The recent run up in the stock market—especially for tech stocks—signals a stimulative business climate during the second Trump Administration which should fuel a continued rise for defense tech—the incorporation of new technologies such as AI, cyber, autonomy and space for military applications. The first Trump Administration saw an S&P 500 increase of 50%, a much larger tech stock increase of 138%, and 380% for the Magnificent 7 stocks.

Looking forward, the combination of extended rate reductions in the Tax Cuts and Jobs Act (2017), a lighter regulatory environment, and likely lower interest rates with easing inflation all create a positive economic outlook.

INVESTMENT

Rethinking Defense: The Role of Private Capital

The defense sector needs private capital to fuel innovation, expand capacity, and improve affordability.

Defense Tech Hits New Highs In 2024

Defense and critical infrastructure tech startup Chaos Industries raised $145 million in a Series B — more than doubling its Series A from just last year.