Silicon Valley Conquers the Pentagon As Defense Tech Explodes

OF NOTE

Latest Defense Tech News and Analysis (April 2025)

Major Themes and Developments

US Defense Spending and Policy

The House Armed Services Committee (HASC) approved a $150 billion increase in the US defense budget, reflecting a renewed emphasis on modernization and global readiness

The Pentagon is launching the Software Fast Track (SWIFT) program on May 1 to accelerate software acquisition and improve upon legacy processes, aiming to keep pace with rapid technological change

Emerging Technologies and Modernization

The US Army is set to deploy an integrated data layer for Next Generation Command and Control (NGC2) at the division level before the next Project Convergence, enhancing multi-domain operations and real-time battlefield awareness

The Army is also accelerating Abrams tank modernization, with the goal of drastically reducing upgrade timelines and applying lessons to other platforms

The Marine Corps is fielding counter-drone systems to dismounted units, responding to the proliferation of low-cost aerial threats

Artificial Intelligence and Autonomy

The Pentagon is expanding the use of AI for target spotting and tracking, with two Navy warships scheduled to test Rebellion Defense’s IRIS system in 2026

The US Navy and industry are pushing for more predictive maintenance tools, seeking dashboards that can forecast equipment failures before they occur

DARPA is running an AI-cyber contest to counter China’s advances in telecom hacking, highlighting the intersection of AI and cybersecurity in defense

The US and China are racing to integrate AI into robotics and battlefield systems, with China developing “ChatGPT for robotics” to enable more autonomous battlefield operations

Unmanned and Autonomous Systems

The Navy is investing in hybrid fleets with a mix of crewed and autonomous vessels, and new concepts like sub-drone sonar traps are being developed to counter undersea threats

The Army is evaluating simple, low-cost unmanned tech, including 3D-printed kamikaze drones and self-powered lasers for air defense

Lockheed Martin has tested an autonomous HIMARS rocket launcher, confirming the future of uncrewed artillery missions

Space and Satellite Communications

Amazon has launched its first 27 operational Kuiper satellites, aiming to compete with Starlink and diversify the Department of Defense’s low Earth orbit (LEO) communications supplier base

Global Defense Trends

India and France finalized a $7.5 billion contract for 26 Rafale Marine naval fighters, making India the first export customer for this platform

Iran’s military spending dropped by 10% in 2024, while Pakistan is leveraging its alliance with China to counter India’s air power

The US Navy is seeking more international partners to secure Red Sea shipping lanes against Houthi attacks, emphasizing coalition operations in maritime security

INNOVATION

Silicon Valley Conquers The Pentagon As Defense Tech Explodes

According to one research firm, the global AI market in aerospace and defense is projected to surge from approximately $28 billion today to a staggering $65 billion by 2034. That’s a solid 9.91% compound annual growth rate.

North America alone represents $10.43 billion of this market, and it’s growing even faster at 10.02%, annually.

With Palantir stock taking off, CEO Alex Karp has finally been vindicated

Alex Karp is having a moment, and he’s not embarrassed about turning it into a victory lap.

The cofounder and chief executive officer of Palantir Technologies, maker of data analysis software for both private sector and government applications—and, most famously, for the U.S. military—is about to take the stage at AIPCon, the company’s annual showcase of its AI-powered tools. It’s a Thursday in early spring at an event space in Palo Alto, and Palantir has put together a packed agenda for the day, complete with demos of its newest products.

But first, the company shows a sizzle reel of sorts, highlighting past clips of talking heads on CNBC and other news outlets calling the software maker “overhyped” and referring to it as a “weak company.”

“Everyone thought we were gonna fail,” Karp himself says in one of the segments.

Nano-material breakthrough could revolutionize night vision

A new sensor material needs no bulky cooling gear—and fewer Chinese rare earths—to work well.

AI is accelerating a new era of public sector innovation

The advancement of generative AI marks a technology paradigm shift impacting every part of the public sector. A newly released study Google commissioned with GovExec highlights the pervasiveness of this technology as 94% of respondents reported they plan to use AI in their department or agency in the immediate future.

Brent Mitchell, Vice President of Go-to-Market at Google Public Sector said, “We stand at this pivotal moment in time. This is a new era of American innovation where AI is reshaping every aspect of our daily lives.”

ARTIFICIAL INTELLIGENCE

Mission before money: how Trump and Ukraine are helping Europe's defence industry lure AI talent

Some European tech workers who might once have headed to the United States are looking at defence startups closer to home. Others are rushing back to Europe from jobs abroad.

TECHNOLOGY

Japan unveils railgun that fires seven times faster than speed of sound

The weapon fires projectiles at 2,500 meters per second - seven times the speed of sound - enabling rapid engagement of high-speed threats that conventional systems struggle to counter.

Unlike conventional guns that rely on explosive propellants, railguns use electromagnetic force to accelerate projectiles, reducing onboard risks and enabling longer-range targeting of air and sea threats.

Four Defense Technology Companies Transforming National Security

The defense industry is undergoing a massive transformation as governments implement advanced technologies into their military operations. As technologies like unmanned drones, robotics, autonomy, and artificial intelligence (AI) continue to develop and demonstrate their effectiveness, we think that they could spark something of a global arms race in both the public and private sectors.

Escalating conflicts and instability around the world add urgency to governments’ investments in acquiring these technologies. Global military expenditures reached $2.4 trillion in 2023, growing 6.8% relative to 2022.1

Defense tech company Epirus delivers counter-drone swarms to Navy

Defense tech contractor Epirus today announced it delivered a counter-drone capability to one of the Navy’s warfare centers following demonstrations last year of the company’s Leonidas Expeditionary system.

Anduril Unveils Pulsar-L for Lightweight EW

Pew-pew, but make it miniature. This morning, Anduril unveiled a teeny-tiny version of its Pulsar electronic warfare system, named Pulsar L (Pulsar-Lite). The mini version of the company’s EW set-up—originally unveiled during SOFweek last year—is designed to be highly mobile and protect warfighters way, way out on the edge.

Heidrick & Struggles Launches Global Government & Defense Tech Practice in Frontier Tech Push

Heidrick & Struggles (HSII) has announced the launch of its Government & Defense Tech Practice, a strategic move to cement its presence in the frontier technology sector. This initiative builds on the firm's longstanding expertise with over 200 completed engagements and brings together more than 30 experienced partners from diverse sectors across North America, Europe, Asia, and Australia.

The practice targets the substantial market of government technology, which accounts for approximately 10% of global technology and IT services spending. By formalizing its Government & Defense Tech Practice, Heidrick & Struggles aims to capitalize on increasing opportunities in this sector, focusing on critical areas such as cloud infrastructure, cybersecurity, AI, and robotics.

STARTUPS

Michigan-Israel Business Accelerator in Detroit Hosts Defense Tech Startups

The Michigan-Israel Business Accelerator, a nonprofit economic development organization in Detroit focused on driving Michigan’s growth by connecting Israeli innovation with the state’s industries, hosted a group of 13 entities from Israel, including 11 defense technology startups, to provide them with a first-hand look at the state’s defense sector.

INVESTMENT

GOP’s $150B Defense Bill for Reconciliation Funds Golden Dome, ‘Historic’ Tech Investments

The Republicans leaders of the House and Senate Armed Services Committee have rolled out their $150 billion defense spending plan for the forthcoming reconciliation bill, which includes $25 billion for the Golden Dome missile defense system.

Mike Rogers (R-Ala.) and Sen. Roger Wicker, the HASC and SASC chairs, respectively, both cited the bill’s “historic investments” in new technology, which includes funding spaced-based intercept capabilities, with the House panel set to consider the legislation on Tuesday.