Weekly News Update: May 31, 2024
25 - 31 May 2024
Good morning,
Break out the Tropical White uniforms. Memorial Day is behind us, and summer is here and this summer is heating up (just like the Second Cold War could heat up into Hot Shots! Part Deux).
Congress is continuing to push forward with record defense authorizations, with some leaders wanting to give more money to the military than the DoD’s requested budget. This comes even as the services continue to explore novel ways of creating coherent innovation and modernization strategies.
Aid is flowing into Ukraine, once more, as the US and its allies are letting the beleaguered country take off its gloves—sort of. Announcements of allowing Ukraine to use western weapons to strike into Russia highlights the absolute stupidity of previous policies and also comes even as the United States and Germany rebuke Ukraine’s use of donated Patriot air defense systems for its protection, without prior coordination with the west.
US adversaries are continuing to neutralize our technological advantages, with the Yemeni Houthis demonstrating, once again, that they can down our most sophisticated aerial ISR platforms.
Across industry, somehow despite a seemingly complete dearth of governance and quality assurance, Boeing continues to win contracts from the government. Several large M&A announcements in the space this week, providing some hope for exit opportunities as companies continue to mature. There are also signs of hope for venture funding with several small rounds and the announcement that less than a year after raising a $223M Series B, Helsing is back looking to raise more than $400M at a $4Bn valuation.
Let’s dive in to these and other issues surrounding aerospace and defense technology.
Weekly News Round Up
Military
U.S. Defense modernization and innovation
Powerful GOP senator eyes ships, jets, nukes in defense spending surge (DN)
GAO blames new frigate’s delay on Navy tampering with design, ‘botched metrics’ (BD)
DIU sees new portfolio deepening ties between labs, commercial firms (C4)
Army sets development plan for future tactical drone (DN)
Navy’s aims for Middle East drone fleet altered after big miss on target number (S&S)
Navy CIO looks to crowdsource innovation with ‘structured challenges’ (DO)
Defense Tech Opportunities
SSC STP released the STEP 2.0 spacecraft RFP to fly multiple experiments (SAM)
NGA released an open BAA for Innovative GEOINT Science & Technology capabilities (SAM)
AFRL released a solicitation for S&T Applied RF systems or ‘STARS’ (SAM)
Army RCCTO released an RFI for Human-Machine Integrated Formation (HMIF) dismounted controllers, allowing control of multiple robots and drones (SAM)
Europe, Russia, the Arctic, NATO, and the war in Ukraine
POTUS allegedly has given Ukraine permission to use US weapons when striking Russia (Pol)
Berlin also eases restrictions on Ukraine’s use of German weapons (AP)
Sweden to send Ukraine military equipment worth $1.3Bn (DN)
Belgium gives $1.1Bn in military aid to Ukraine, including 30 F-16 jets (Pol)
US pledges $135 million in aid to Western-leaning Moldova to counter Russian influence (AP)
Poland eyes fortifications on its border with Belarus (DN)
China, Korea, and Asia
North Korea sends poop-filled balloons into South (VOA)
Gun-toting robot dog fetches attention at Chinese military drills (AX)
Blacklisted Chinese companies rebrand as American to dodge crackdown (WSJ)
US lawmakers pledge support for Taiwan and its new president after China’s military drills (AP)
TikTok is reportedly preparing a US copy of its core algorithm (RT)
Middle East and Africa
Houthis down their 6th American MQ-9 Reaper drone since October (AP)
US, Britain strike Houthi targets in Yemen after surge in attacks (MT)
US defends Africa strategy in light of coups and a drift toward Russia (AP)
US targets Wagner-linked firms in Central African Republic, says Treasury Dept (RT)
U.S. Defense Industry News
Lawmakers resume fight against ‘price gouging’ for military parts (TH)
Industry responding to Navy’s interest in small unmanned systems (DN)
DARPA picks six firms to develop experimental ship-launched drones (C4)
DARPA green lights Aurora, Bell for next phase in SPRINT X-plane competition (BD)
Space Force narrows anti-jam satellite contest to Boeing, Northrop Grumman (SN)
Boeing sees six-fold rise in employee concerns on safety and quality (RT)
Boeing wins $7Bn from Air Force for guided bombs (DN)
Leonardo DRS wins $26M radar contract with the Navy (MW)
Poland spends $735M for Lockheed missiles (DN)
Palantir lands $480M Army contract for Maven artificial intelligence tech (DS)
Sierra Nevada gears up to build Air Force ‘doomsday’ planes (DN)
DIU awards $2.5M to The Spaceport Company to advance development of sea-based space launch capability (SN)
AI startup Wallaroo tapped to help Space Force operationalize machine learning (SN)
Foreign Defense Industry News
Israel examines M61 Vulcan for countering drones (DN)
ESA selects Thales Alenia Space and The Exploration Company for commercial cargo program (SN)
US Marines buy 200 tactical robots from Israel’s Roboteam amid all-time high demand (BD)
North Korean missile debris found in Ukraine: Defense intelligence report (TH)
Space
N. Korea’s launch of a second military spy satellite failed (TH)
Peru and Slovakia sign the Artemis Accords (SN)
Robotic Russian cargo ship leaves the ISS, burns up in Earth's atmosphere (Sp)
China conducts three launches inside two days (SN)
China’s secretive spaceplane releases object into orbit (SN)
Basalt plans to ‘hack’ a defunct satellite to install its space-specific OS (TC)
Nuclear Power & Weapons
White House presses allies to not confront Iran on nuclear program (WSJ)
Russia to build Central Asia's first nuclear power plant in Uzbekistan (RT)
Study: Future energy demand does not need new fossil fuels (FT)
Russia continues its nuclear saber-rattling (RT)
AI, Robotics, & other Frontier Tech
DIU issues ‘significant update’ to Blue UAS list (DIU)
US is slowing AI chip exports to Middle East (BBG)
Voice cloning of politics figures remains too easy, with worrying implications for disinformation campaigns (TC)
Misinformation works, and a handful of social ‘supersharers’ sent 80% of it in 2020 (TC)
Google's AI search is producing embarrassingly wrong results (TV)
Musk's xAI raised a $6B Series B at a $24B valuation from investors including Sequoia and a16z (WSJ)
A&D-Focused Finance
German AI defense startup Helsing AI is in talks to raise a $400M Series C at a $4B valuation led by General Catalyst (EU)
AI-powered 'auto-aiming' defense tech startup ZeroMark raised a $7M seed round led by Ground Up Ventures and a16z (BW)
Basalt Technologies, a spacecraft OS company, raised a $3.5M seed round led by Initialized Capital (FN)
Revolv Space, a space tech startup, raised a $2.8M round led by Primo Ventures (FN)
Scottish space firm, Aurora Avionics, secures £320,000 ($409K) to create off-the-shelf rocket avionics (SFN)
Essential Turbines, which specializes in maintenance, repair and overhaul of helicopter engines, received a strategic investment from Swift Anchor (PEH)
Carlyle is planning a sale of Italian aerospace-focused manufacturer Forgitalat a $2.7B EV (RT)
Prague-based defense firm Czechoslovak Group will acquire Vista Outdoor’s sporting products business for ~$2B (RT)
Aerospace components maker TransDigm will acquire test manufacturer Raptor Scientific from PE firm L Squared Capital Partners for $655M (PRN)
Cerberus Capital Management acquired a majority stake in M1 Support Services, a Texas-based provider of aircraft maintenance, repair, and other services to the US government (GCW)
US municipalities pile into Israel’s wartime debt (FT)
Important Reads
Andrew Metrick of CNAS explains why the DoD needs to get on the same page about innovation.
Noah Smith wades deeper into geopolitics, prescribing what immediate actions the US must take to prevent simmering tensions from boiling over.
ICYMI: Building our Defense tackles the proposal from the HASC subcommittee on Tactical Air and Land Forces that would force the Army to create a drone branch.
Lighter Side
Keep building!
Andrew