Will Palantir execs take over the DoD? War reignites in the Middle East. South Korean president-led coup folds quickly under Parliamentary pressure.
Defense and dual-use texhnologies
Good morning,
Today is the first day of the Reagan National Defense Forum. If you’re not there, you’re a square (or so we’ve heard… we don’t know because we’re not there). Having said that, if you ARE there, make sure you mention Building our Future. Many in that audience would benefit from reading our takes on defense, security, and technology.
So, what’s happened since you last heard from us? Well, South Korea’s President Yoon Suk Yeol declared martial law this week, trying to crack down on political dissent, which he characterized as a threat to the state. Well, this state of martial law was short lived as Korea’s parliament quickly voted 190-0 against martial law. Many consider Yoon’s attempt as being tantamount to a coup, to which Korea is no stranger, having survived a series of them during its Cold War History.
Moving to the Middle East, the Syrian Civil War, which has lain dormant for several years following Russian intervention on behalf of the Assad regime, has reignited this week. Loosely organized rebel forces, led by Abu Mohammed al-Jolani of the Hayat Tahrir al-Sham (HTS) group, have rapidly seized Aleppo and Hama. al-Jolani now seeks to present a semi-stable governance capacity to demonstrate an alternative to the Ba’athist Assad regime. Now, the Syrian rebel alliance is a bit internecine, with wildly differing ideologies and support bases creating very strange bedfellows. It will be interesting to see how this plays out. One simple example is that Turkish President Erdoǧan who has been vocally critical of Israel’s push to clear Hamas from Gaza, seems to support HTS, whose advance in Syria will likely benefit Israel in the region. This will be one to watch for sure.
Now, for some good news. Longtime friend of Building our Future, Shyam Sankar, the CTO of Palantir, is allegedly on Trump’s shortlist to potentially serve as the Undersecretary of Defense for Research and Engineering (USD(R&E)) replacing Heidi Shyu who has filled that role since her confirmation in the role in 2021. Now, we wouldn’t wish the bureaucratic headache and hassle on our friends, but should the administration ask Shyam and should Shyam agree, he will faithfully represent the interests of our national security. So, we’re tipping our hats to him!
Now, let’s dig in to the news!
News Headlines:
Syrian civil war reignites, seeing rebels advance rapidly (RT)
S. Korea lifts president's brief martial law decree after lawmakers reject military rule (AP)
Beijing sharpens tone over U.S. missile launcher in the Philippines (DN)
Federal appeals court panel upholds law requiring sale or ban of TikTok in the U.S. (AP)
Defense & Dual-Use Technologies
Could Trump's pick for Pentagon No. 2 accelerate DOD's hypersonic efforts (DO)
Trump eyes Shyam Sankar of Palantir to reshape Pentagon engineering arm (NM)
How the Pentagon is moving to counter converging IT and operational tech threats (DS)
New AI tool for air defense takes on advanced missiles and drone swarms (DO)
Air Force defers NGAD decision to Trump admin (DN)
Air Force leaders are warming to using CCAs to escort long-range bombers (ASF)
New Army-funded tech creates realistic terrain, avatars in simulations (MT)
Army eyes autonomous missile launcher and 1,000 km strikes (MT)
Marine Littoral Regiment 3 fields new ship-killing missile (MT)
Threat Tech
Russia tests Zircon hypersonic cruise missile in Mediterranean (TWZ)
Post-election Russia disinformation campaign focused on driving wedge between U.S., Ukraine (AP)
Syrian rebels capture Russia's advanced Podlet-1K Radar system (TWZ)
Advanced Russian attack sub operating in the east China sea as part of 'surface action group' (USNI)
Chinese lidar sensors pose hacking risk to U.S. defense equipment (RT)
Mysterious object appears at remote Chinese airfield linked to spaceplane program (TWZ)
North Korea expands plant making missile Russia uses in Ukraine (RT)
Criminal probes launched after drone overflights of numerous bases (DN)
Foreign Defense Tech
Europe races to set up €500B defense fund (FT)
NATO draws up plans for its own fleet of naval surveillance drones (DN)
Australia narrows its frigate search down to German, Japanese designs (DN)
Germany's Helsing to provide AI-enabled HX-2 kamikaze drones to Ukraine (TWZ)
Italy's small defense firms ride high amid military spending boon (DN)
Defense Industry
Senators introduce bill to 'limit Big Tech monopolies' in DOD cloud and AI procurement (DS)
Dwarfed by China in shipbuilding, U.S. looks to build its defense base to fend off war (AP)
Anduril wins $100M deal from CDAO to scale 'edge data mesh' capabilities (DS)
Lockheed challenges narrative on GPS vulnerability (SN)
Northrop activates Arctic SatCom constellation for Space Force, Norway (DS)
Raytheon wins follow-on Next Gen Jammer production contract worth $590M (DS)
French defense and space company Safran plans significant U.S. expansion (DN)
U.S. Navy awards X-Bow Systems $60M to modernize solid rocket production facilities (SN)
Autonomous Systems
Anduril, OpenAI partner to boost counter-drone tech for bases, troops (DN)
Palantir teams up with Shield AI on AI-powered autonomous aircraft (BBG)
Pentagon green-lights counter-drone strategy amid 'urgent' threat (DN)
Revised fold-away rotor aircraft concepts emerge from Special Operations X-Plane Program (TWZ)
Deal Flow:
VC
Israeli defense tech, D-Fend Solutions, raised a $31M round led by Israel Growth Partners to advance its counter-drone tech (PU)
Latvian based Defense Tech startup, Origin, raised $4.75M from the European Defence Fund (sUN)
PE / M&A
VSE acquired aerospace engine aftermarket specialist Kellstrom Aerospace from AE Industrial Partners for $200M (BW)
Finnish tech group Summa Defence acquires U.S. deep tech company Lightspace, expert in combining augmented reality and AI (CIS)
Sagewind Capital reveals majority investment in Aechelon Technology, which provides image generation software and complex databases for live-virtual-constructive training, and simulators for the DoD (PU)
Opportunities
The Air Force Research Laboratory has released its BAA describing research areas of interest for the Directed Energy Directorate (SAM)
Vice Chairman: we need realistic simulations for digital warfare (DO)
SOCOM launches new commercial solutions opening for digital applications (SAM)
Editor's Picks:
W.J. Hennigan describes a horrific, yet all-too possible outcome of war escalating into a nuclear attack in space.
We predicted it here first, in January, and called it back in July; PE activity in the A&D sector is picking up. Now PitchBook has run an inaugural report echoing what we said.
Dave Barno and Nora Bensahel pile in on America's unpreparedness for protracted conflict.
Lighter Side:
Keep Building,
BOF
I sincerely hope that Shyam has the virtues and courage to tell PE Turmp absolutely NO!