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Palantir, Anthropic, and more. Here’s how defense giants and startups are betting on war. NYT Report

After years of criticism and financial risks, Palantir, Anthropic, and small start-ups are reaping the rewards of their investments in defense technology. An in-depth report by the New York Times.

As the war in the Middle East enters its third week, information collected by the Pentagon is being analyzed by the artificial intelligence technology of the company Anthropic, on a system managed by the data analytics firm Palantir.

Drones created by a defense technology start-up in Arizona have become a key element of the U.S. war arsenal. Additionally, anti-drone systems produced by a California start-up have been deployed to protect U.S. forces in the region.

SILICON VALLEY’S DEFENSE BETS

In recent years, Silicon Valley has made risky bets on developing defense-related technologies and providing services to the U.S. armed forces. Now these bets are paying off. From giants supplying data systems to smaller companies offering innovative weapons, technology firms like Google, Palantir, and OpenAI have found themselves at the center of the U.S. war effort. Their central role is tantamount to saying “We told you so.”

AFTER YEARS OF FEARS AND SKEPTICISM

For years, the tech industry’s efforts in defense have met skepticism and opposition, without clear or immediate commercial results. Many Silicon Valley engineers opposed the use of powerful technologies for killing, fighting, and other military purposes, concerns that still persist.
Despite these fears, venture capital firms have invested billions of dollars over the past decade in start-ups developing drones, lasers, and other military systems. In January, Andreessen Horowitz, founded by entrepreneurs Marc Andreessen and Ben Horowitz, closed a new fund of nearly $1.2 billion to invest in defense technologies.
In recent years, defense sector start-ups have often advanced weapon prototypes even before securing official government contracts. At the same time, executives like Alex Karp, CEO of Palantir, and others have begun cultivating closer ties with government institutions.

BIDEN ADMINISTRATION’S OPENNESS AND TRUMP ADMINISTRATION’S SUPPORT

Former President Biden welcomed military technology, and President Trump further promoted it. Last year, Trump issued an executive order requiring the armed forces to update their technology acquisition system to more quickly integrate new tools. His domestic policy plan, presented last year, allocated $1 trillion for defense by 2026, including technologies offered by companies in the sector.

OPENAI AND GOOGLE AI DEALS

Now the war has consolidated that work, likely leading to increased business between the tech industry and defense institutions. This month, Sam Altman, CEO of OpenAI, agreed to integrate his company’s artificial intelligence systems into the Pentagon’s classified networks. Google signed an agreement to introduce AI-based bots, known as “agents,” into the Department of Defense. The Army announced it had awarded Anduril, a defense technology company, a $20 billion contract for AI-based software to run on military systems.

PENTAGON’S ENTHUSIASM FOR NEW TECHNOLOGIES

Pentagon officials expressed enthusiasm about the results achieved by new technologies, such as AI-based systems, in the U.S. and Israel’s war against Iran. Two officials, who preferred to remain anonymous, stated that the war represented a turning point, demonstrating how modern technology can integrate with existing military systems. Jack Shanahan, a retired Air Force lieutenant general who led the Pentagon’s AI integration efforts during the Biden administration, said the war will accelerate the adoption of more technologies. Over the next ten years, he predicts traditional and modern systems will be merged together, along with more powerful artificial intelligence.

INCLUDING THOSE PRODUCED BY DEFENSE STARTUPS

Technologies from defense sector start-ups are also being employed. A system using drones to counter other drones, called Merops, developed as a venture project by former Google CEO Eric Schmidt, has proven crucial for protecting U.S. targets in the conflict. The system, small enough to be launched from the bed of a pickup truck, uses artificial intelligence to detect and intercept drones before they can reach their targets.

On the battlefield, small and lightweight drones called LUCAS, produced by SpektreWorks, a Phoenix start-up, have also been deployed. The LUCAS drones, which mimic Iranian Shahed drones, are designed for one-way flights. According to a U.S. official, they have proven effective in overwhelming missile defense shields and employing the type of drone warfare popularized in Ukraine. This month, U.S. Central Command released footage showing rows of drones being prepared for deployment to American armed forces.

 

(Excerpt from the foreign press review curated by Epr Comunicazione)

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