Securing America's Future: How Technology Companies and Washington Are Building A Safer World

Summary

Brian Schimpf, CEO of Anduril Industries, shares his insights on the evolving defense industry landscape. He discusses the increased acceptance of new entrants and startups within the Department of Defense, highlighting Anduril's work on the Air Force's Loyal Wingman project involving autonomous fighter jets. Schimpf emphasizes the importance of addressing critical warfighter needs with urgency, focusing on rapidly developing technologies to counter emerging threats like drones. He stresses the need for faster adoption of commercial innovations and advanced manufacturing approaches to scale production quickly. Schimpf advises aspiring defense tech companies to prioritize solving urgent problems that can meaningfully impact the DoD.

Takeaways

• 🔓 Traditionally, it was very difficult for new companies to break into the defense industry, but this has become more feasible in recent years.
• 🚀 Anduril is working with the U.S. Air Force on the Loyal Wingman project, which involves developing autonomous fighter jets, signaling a shift towards allowing new entrants to work on large-scale defense projects.
• 🌍 The changing threat landscape, with developments like the war in Ukraine, has highlighted the need for new autonomous technologies and approaches to warfare.
• ⚡ The U.S. Department of Defense is pushing initiatives like Project Replicator to rapidly field thousands of autonomous systems and drones, adopting a faster pace of innovation and acquisition.
• 🛠️ Anduril's business model focuses on developing hardware to enable advanced software capabilities, anticipating future threats and designing solutions accordingly.
• 🛡️ There is an urgent need for counter-drone technologies, with adversaries rapidly advancing their capabilities, prompting Anduril to invest in solutions like the Roadrunner counter-drone system.
• 🏭 Scaling manufacturing and production is a critical aspect, with Anduril leveraging advanced manufacturing techniques and automation to meet demand.
• 🌟 To succeed in the defense industry, companies must focus on solving urgent warfighter needs and problems that will have a meaningful impact, rather than peripheral issues.
• 💰 The U.S. Department of Defense is exploring new acquisition strategies, such as Project Replicator, to curate a diverse industrial base and encourage competition.
• 🇺🇸 The U.S. aims to establish leadership in autonomous technologies and set norms and ethics, as adversaries like China also invest heavily in this area.

Q & A

What was the primary challenge Anduril faced when they first started working in the defense space?

According to the CEO, when Anduril first started working in the defense space around 15-17 years ago, it was nearly impossible for new companies to break into the industry and do anything substantial. It was challenging to imagine that new entrants could work on large-scale projects like weapons or aircraft.

How has the landscape changed for new companies in the defense industry?

The landscape has shifted significantly. Today, Anduril is fortunate to be working with the Air Force on the Loyal Wingman project, which involves autonomous fighter jets. This represents a massive change from when the company started, and it is now possible for new entrants to work on large-scale projects.

What is the Loyal Wingman project, and what is Anduril's role in it?

The Loyal Wingman project is an Air Force initiative to develop autonomous fighter jets. Anduril is one of the companies working with the Air Force on this project, although specific details are limited due to the sensitive nature of the work.

How does the CEO view the Air Force's approach to the Loyal Wingman project?

The CEO commends the Air Force for constructing an opportunity to use acquisition strategies to curate the industrial base differently. By involving multiple participants, the Air Force is incentivizing the industrial base to invest in these new technologies, which is a significant deal.

How does the changing threat landscape impact the need for new capabilities?

The CEO cites lessons from the conflict in Ukraine, where large quantities of systems are being put at risk, and assumptions about air superiority are being challenged. The ability to use autonomous systems represents a new way of operating, which will change how we think about warfighting.

What is the significance of the Replicator initiative mentioned in the script?

The Replicator initiative aims to field thousands of autonomous systems and drones over the next couple of years, at a much faster pace than traditional defense acquisition processes. This aligns with the types of technologies Anduril has been building and thinking about for years.

How does Anduril's business model differ from traditional defense contractors?

Anduril's business model involves designing and building hardware to enable and propel software development. They anticipate where threats are headed and develop capabilities accordingly, even if the DoD hasn't officially recognized the need yet.

What is the Roadrunner technology mentioned by the CEO, and how does it address emerging threats?

Roadrunner is a vertical takeoff and landing counter-drone system developed by Anduril. It addresses the growing threat of adversaries using drones and cruise missiles, which have become more pervasive and capable in recent years.

What challenges does the CEO identify in scaling manufacturing for defense products?

The CEO acknowledges that the traditional industrial base in the US for defense is often at the point of retirement, with facilities and personnel aging out. However, he believes there is a new generation of manufacturing companies in the US that can leverage advanced automation and smart approaches to scale production.

What advice does the CEO offer to others looking to work with the DoD?

The CEO advises that the most important thing is to focus on solving critical warfighter needs and urgent problems that will have a meaningful impact for the Department. Addressing problems that don't have urgency or won't move the needle is a trap that many fall into.

Outlines

00:00

🚀 Breaking into the Defense Industry

The speaker discusses the challenges of new companies entering the defense industry and how it was nearly impossible when they started about 15-17 years ago. However, things have changed drastically, and now companies like Anduril are working on large-scale projects like the Air Force's Loyal Wingman program, involving autonomous fighter jets. The speaker highlights the shift in the Department of Defense's approach, allowing new entrants to work on significant projects and expand the industrial base.

05:02

⚔️ Adapting to the Changing Threat Landscape

The speaker talks about how the threat landscape is changing, drawing lessons from the conflict in Ukraine. They emphasize the need for autonomous systems and new ways of operating, as traditional air superiority assumptions are being challenged. The ability to field autonomous systems quickly and at scale is crucial for the US to maintain a leadership position. The speaker discusses Anduril's investment in counter-drone technologies like Roadrunner to address emerging threats.

10:02

🏭 Scaling Manufacturing for Defense Innovation

The conversation shifts to the importance of scaling manufacturing capabilities for defense innovation. The speaker highlights Anduril's investment in advanced manufacturing techniques, leveraging commercial innovation and automation to overcome capacity constraints. They stress the need for a new generation of manufacturing companies to support the production of cutting-edge defense systems. The key to success is solving critical warfighter needs with a sense of urgency, as the Department of Defense will prioritize solutions that can meaningfully impact their operations.

Keywords

💡Innovation

The act of introducing new ideas, methods, or technologies. In the context of the video, innovation refers to the development of advanced defense technologies and systems, such as autonomous fighter jets and counter-drone capabilities. The script emphasizes the importance of fostering innovation within the defense industry, particularly through collaboration between Silicon Valley and the government, to maintain technological superiority.

💡Disruptor

An entity that disrupts or challenges the existing way of doing things in a particular industry or field. In this video, the term is used to describe Anduril Industries as a company that is disrupting the traditional defense industry by introducing innovative technologies and new approaches to manufacturing and acquisition. The script portrays Anduril as a 'disruptor' that has successfully broken into the defense market, which was previously dominated by established contractors.

💡Loyal Wingman

A program by the U.S. Air Force to develop autonomous fighter jets, also known as 'loyal wingmen,' that can accompany and support manned aircraft in combat missions. The video highlights Anduril Industries' involvement in this program, which is seen as a significant milestone in the company's ability to work on large-scale defense projects. The script suggests that the Air Force's approach to this program is aimed at fostering a new industrial base and allowing for multiple participants, including new entrants like Anduril.

💡Acquisition Strategy

The approach taken by a government agency or organization in procuring goods and services from external suppliers or contractors. In the context of the video, the Air Force's acquisition strategy for the Loyal Wingman program is described as a way to 'curate the industrial base' and encourage participation from multiple companies, including new entrants like Anduril. This strategy is seen as a departure from traditional defense acquisition programs that often relied on a single, established contractor.

💡Threat Landscape

The evolving nature and range of potential threats or adversaries that a nation or organization must be prepared to address. The video discusses how the threat landscape is changing, citing the example of the war in Ukraine, where the assumptions about air superiority and the risks faced by combatants have been challenged. This changing threat landscape necessitates the development of new capabilities, such as autonomous systems, to adapt to the evolving nature of warfare.

💡Replicator

A Department of Defense initiative mentioned in the video, aimed at rapidly fielding thousands of autonomous systems and drones for warfighter needs within a couple of years, rather than the typical 6-10 year timeline. The script suggests that Anduril Industries is working on technologies that align with the goals of the Replicator initiative, which is focused on accelerating the adoption of new technologies within the defense sector.

💡Counter-Drone

Technologies or systems designed to detect, track, and neutralize hostile or unauthorized drones. The video highlights Anduril's Roadrunner technology, a vertical take-off and landing counter-drone system, as an example of their investment in technologies aimed at addressing the growing threat posed by adversaries' drone capabilities. The script emphasizes the urgency of developing effective counter-drone solutions, as drone attacks have become more frequent and sophisticated.

💡Manufacturing Innovation

Advancements or improvements in the processes and methods used for manufacturing products or systems. The video discusses the need for a new generation of manufacturing companies in the United States that can leverage automation and advanced techniques to scale up production of defense technologies rapidly. Anduril is presented as a company that has invested in manufacturing innovation to address potential capacity constraints and meet the demand for their products.

💡Warfighter Need

The specific requirements or capabilities that are essential for military personnel (warfighters) to effectively carry out their missions. The script emphasizes the importance of focusing on solving critical warfighter needs that urgently require solutions, as opposed to addressing less pressing problems. This focus on addressing urgent warfighter needs is presented as a key factor in Anduril's success in the defense industry.

💡Industrial Base

The collective capabilities and resources of the companies and organizations involved in the production of goods and services for a particular industry. In the context of the video, the term 'industrial base' refers to the companies and facilities that produce defense technologies and systems for the U.S. government. The script discusses the Air Force's efforts to expand and diversify the industrial base for defense technologies through programs like the Loyal Wingman, which aims to involve multiple participants, including new entrants like Anduril.

Highlights

Initially, it was impossible for new companies to break into the defense space and do substantial work, but over time, even new entrants like Anduril have been able to work on large-scale projects like the Air Force's loyal wingman program.

The Air Force is trying to curate the industrial base in new ways, allowing multiple participants, including new entrants, to work on programs like the loyal wingman project, which is a significant shift from the past.

Autonomous systems like the loyal wingman project will change how warfighting is conducted, moving away from incremental improvements to conventional methods and establishing new norms and ethics, which is critical for the US to lead.

Anduril is working on technologies related to the ambitious Replicator initiative, which aims to field thousands of autonomous systems and drones at a much faster pace than traditional defense acquisition.

The Replicator program represents a shift towards buying capabilities off-the-shelf, similar to a free market approach, rather than paying for long-term R&D and development.

Anduril has invested in technologies like the Roadrunner counter-drone system, anticipating where threats will evolve over the next 5 years, and was able to field a weapon capability in under 2 years, an incredibly fast pace.

Anduril is already selling the Roadrunner counter-drone system to US government customers and seeing international interest, addressing an urgent need that has been underinvested in for decades.

Anduril believes manufacturing and scaling production is a solvable problem by leveraging commercial innovation and advanced automation, without capacity constraints over a 5-year period.

The key to success for startups in the defense space is to focus on solving critical warfighter needs and problems that urgently need to be solved, rather than working on problems that might be nice to solve but don't move the needle for the Department.

Transcripts

it's great to be on stage with you it's

great to be here with everybody in the

audience as well uh the fir there's a

lot to get to but the first place I want

to start is we just had uh the deputy

defense secretary present on stage she

was talking about Innovation the

intersection of Silicon Valley um and

Dodd government work as somebody who's

on the other side of that equation and

what I will call use the word disruptor

in terms of um breaking into defense and

doing more work with a pentagon your

thoughts well I I think you know I've

been working in the defense space for

maybe 15 17 years now and when I first

started out it was just impossible to

break in right it was impossible to

imagine new companies could do anything

of substance uh and it was just sort of

scratching at the surface fast forward

now you know to even when we started

andal it was still hard to imagine that

you could have new entrance doing

anything large in its scale new

companies working on weapons uh larger

aircraft just didn't seem plausible

especially ones that focus on software

today we're at a place where you know

we're fortunate to be able to you know

disclose we're working with the Air

Force on the loyal wingman project uh

which is in incredibly big change from

where we were when we even started with

this and I think the reality of how this

is you know you're going to see change

in the dep Department how you're going

to see change of making this an area

where the best technology the best

technologists want to work is actually

allowing new entrance to do things in

scale like that is that is the bottom

line right and we're starting to see

areas where that is true um I think

replicator is another great example

where the focus of this on actually

deploying its scale becomes very very

key and not just having these kind of

surface small scale things uh so that

shift is wildly different than what it

was when we started and we're incredibly

excited that this is now feeling very

possible whereas when we started it was

not obvious that this was going to work

there's a lot there for me to unpack

with you in the first place I'm going to

start is uh the fact that it has started

to become easier I mean there there are

more and more we see it in the in the

amount of investment dollars that are

going into defense Tech right now there

are more and more companies and startups

that are aspiring to work with the dod

but you still hear the term over and

over again Valley of Death andrel is

still an exception it's not maybe maybe

it's one of the leaders but it's not uh

it's few and far between in terms of

companies being able to work with DOD

and in a meaningful way

yeah I mean look I I think the the hard

reality with this is it's just like

Venture it's just like any sort of

Industry where there isn't going to be

500 success stories that is unlikely to

be the case right and I think if we

enter a world where we've doubled the

number of companies that are bidding on

these large scale programs that is a

huge accomplishment right like I I think

that is like a goal we should aspire to

um and and I think the reality with this

is a lot of the areas that um you know

are going to succeed are often the ones

that are are less popular it's area

working on weapons uh like this is not

an area that a lot of companies are

interested in doing but I think to

succeed in the defense space you have to

be willing to actually solve the core

problems of this and I think those are

the companies that are going to succeed

best so it's the idea of making

patriotism cool again I completely agree

I think it's always been cool but you

know maybe it's time to rejuvenate it a

little bit um okay I do you want to talk

about CCA which is the loyal wingman

program for the air force uh huge moment

here earlier this month that andrel was

um unveiled as as one of the companies

that's now working with the Air Force on

this program we talking about autonomous

fighter jets uh I guess just walk me

through what that looks like especially

since there's still a down select to go

yeah so um there's there's uh I'm

somewhat Limited in what I'm allowed to

say in terms of like some of the

specifics of it uh but uh what what I

will say about it is you know the the

the Air Force has done an amazing job of

constructing an opportunity to really

look at how can they use acquisition

strategy how they're buying these things

to curate the industrial base in a

different way right they're looking at

how do we have multiple participants in

this and these are a different class of

systems I think unlike you know

something like an F35 where it's only

feasible to afford one provider of this

um you can start to look at for this for

weapon systems for a variety of these

things carrying multiple people to be

able to really incentivize the

industrial base to invest in this um and

I think that's a really big deal uh and

I think the idea that they would they're

looking at new entrance and new ways of

production really is an indication that

they are trying to move forward in new

ways of doing business so it it's a very

exciting time for us I think it's a huge

opportunity that they've created uh to

show the defense department is serious

about really expanding here um whereas

there's just no other kind of major

programs out there that are in that same

class right now you can't you know it's

harder to imagine on like you know a

destroyer or a large capital ship uh but

on this class of Technologies on weapons

Technologies I think it is ripe for new

approaches and new ways of thinking in a

new industrial base how does it speak to

how the threat how the threat landscape

is changing and what that means in terms

of the capabilities that are needed for

the war fighter in this future

environment yeah so if we look at you

know like kind of what we've learned in

Ukraine uh the sheer quantities of

systems the amount that's put at risk

and a lot of the assumptions that the US

has had historically about how we fight

are very very

air superiority becomes incredibly hard

everything's at risk all the time uh and

the amount of you know War Fighters and

servicemen that are going to be at risk

is is much much higher and I think we

can assume similar things for any

conflict going forward the ability to

use autonomous systems is in effect like

a new way of operating whereas you know

F35 and all these were sort of

incremental improvements to like a

conventional way we've been fighting for

quite a long time how we actually adopt

these new autonomous Technologies is

very much going to change how we think

about war fighting I think that's

something that still has to be explored

and understood fully uh and I think the

US leading on that is absolutely

critical we know that China is you know

investing in similar Technologies we

know they're going to move out on it um

and having the US in a leadership

position on this establishing Norms

establishing ethics is absolutely

critical um replicator secretary Hicks

just touched on it uh when she was on

stage as well speaking of very ambitious

initiative to field thousands of

autonomous systems and and drones over

the next couple of years here uh for war

fighter needs in Pentagon parlament a

couple of years rather than six years or

10 years or 20 years I mean that's like

that's a very fast pace yeah are you

working on replicator to the extent you

can yeah so there's a number of uh

Technologies we have that are you know

sort of I think in that in that uh in

that range um like secretary said

there's nothing's been officially

announced yet uh so you know it's it's

all technologies that we're we very much

believe in for this for this sort of

regime the part that I think is so

interesting about the replicator area is

exactly what secretary hick said which

is they are moving at a wildly faster

Pace than they have before they're using

the power of you know senior leadership

to mobilize and force change into the

department that otherwise would kind of

move and incrementally adopt these new

things over a very slow period of time

you know an acquisition we've had system

that we've had that's dialed around you

know large scale aircraft carriers and

f-35s when you start thinking about the

pace that this technology moves it's

just not it's just not the same thing so

forcing this new system to come into

existence to actually Force Technologies

through this is exactly right uh and

it's very aligned with the class of

Technologies we've been building and

thinking about for years how do we have

higher qualities of smarter systems out

in the environment uh and so that's

exactly spot on to the types of things

we we've wanted to see since the

beginning what's really curious what's

really fascinating to me about androll

is that your business model is a little

different as well in terms of this

because the hard Hardware is built and

designed to enable and Propel the

software and the way you design and

develop some of these products is an

anticipation of where the threats are

going to come from and where those

capabilities are headed even if the dod

hasn't necessarily gotten there yet or

at least officially and I I wonder where

you think this is all headed now and

whether the US is moving quickly enough

to keep up with that technology and the

rate of adoption that's going to be

necessary against a China or the like so

I I I think adoption is the right way to

think about it so you know one of the

things that I like about replicator is

probably one of the first at scale

opportunities to buy things in the way

that every other industry in the world

buys them you state what capabilities

you need and you find what's on the

market and you buy it you haven't paid

for R&D you're not paying for

development you're not plotting out the

progress over a 10-year period of where

this technology needs to go and

shepherding it the whole time it is very

much you know the closest thing we've

seen to like a free market approach to

how you do defense Innovation and I

think that's exactly right and that's

the type of approach we've argued for um

in terms of you know sort of where do we

invest where do we see this going and

what are some of the problems we're

we're trying to tackle there's a whole

span of these things but one area I'd

focus on is on the counter drone side uh

so obviously the you know attack to 22

is very tragic and it's the type of

thing that I think is going to frankly

increase in frequency we've seen you

know hundreds of attacks on us bases

already this mirrors a lot of the types

of attacks that we've seen in Ukraine

and the one thing we can say for sure is

that the technology the adversaries have

is now pervasive nearly every country

has what is the equivalent of cruise

missiles uh it is very rapidly iterating

so it's gone from these sort of small

little drones to now jet powered uh

capabilities that are coming from Iran

um the the space is moving very very

quickly and so we've invested in

Technologies for example our Roadrunner

technology which is a you know vertical

takeoff and Landing counter a drone

basically it's a counter drone drone uh

and uh We've invested in this with the

idea that this needs to be designed for

where the threat is going to go over the

next 5 years that's really where we've

tried to push this um and so you know I

think there's areas like that where you

can kind of really see the threat

understand where this is going to go

extrapolate very effectively and build

and feel these Technologies quickly I

mean it was just like under two years

from when we started from never having

done a weapons program to having a

fielded weapon capability and that's a

very fast timeline we wish it was faster

I think we can do it faster next time uh

but uh it was just an incredible pace

and I think you'll see

one you have the demand the clear need

and the Urgent problems you will drive

Innovation and if you can actually scale

it that will drive business and

investors to be there I want to get into

the scale piece of this because this is

crucial to this conversation are you

already selling road runners yes you

just unveiled them a couple months ago

that's right yes so we have uh a number

of US Government customers and a lot of

international interest uh where this is

a very pervasive threat right and the

the US has underinvested in air air

defense capabilities for the last 20 or

30 years right we've had full air

superiority we didn't need to invest it

wasn't a critical problem set we had uh

and so the ability to counter these

threats you know was sort of uh

underinvested in for the last you know

several decades um as a result we're

shooting Patriot missiles and you know

air Advanced air-to-air missiles at

these $100,000 threats shooting $2

million missiles at them it's incredibly

expensive the missiles work very well uh

but there's much cheaper ways to start

to Sol this problem so we've had an

immense amount of demand because it is

such an urgent and critical problem to

address uh from everywhere that you know

you see this happening today so the

scale piece of this we can talk about

Innovation we can talk about designing

and developing and offering new products

how quickly can you scale that

manufacturing this is a big part that

we've invested in and my belief is you

know the traditional industrial base in

the US for defense is often at the point

of retirement you have people who are

large

um you know built this up during the

Cold War they're retiring their kids

don't want to run these facilities and

it's become a critical problem and a

critical Gap but there is a new

generation of manufacturing companies in

the US doing more advanced things um

shout out to Chris power at Hadrian

start for stealing your talking points

on this but the uh um it's it's spoton

uh like you know there's there's a more

advanced ways you can actually scale

this with more automation more smart

approaches and taking a lot of

commercial innovation in that and that's

something we've have invested in so our

belief is this is a solvable problem you

could take advantage of commercial

Innovation on this and there should be

no capacity constraints uh you know over

any sort of 5year period to actually be

able to produce these systems all right

we have less than a minute left so with

that in mind I do want to ask because

you have at andrel um helped Forge the

path here in terms of being a newer

company a newer defense contractor um

working in working with a DOD on

programs of record and in in a

meaningful Revenue generating

consistently Revenue generating way what

are your words of wisdom to others in

the room that are either investing in

other startups or starting their own

startups and looking to looking to I

guess following Footsteps in their own

ways I think the single most important

thing is if you're solving a critical

Warf fighter need on a problem that you

know urgently needs to be solved you can

be successful I think the Trap for most

people is they're solving a problem that

would be great to solve but doesn't have

the urgency and isn't going to move the

needle for the Department in a

meaningful way and rationally the

department is going to pick those things

that actually are going to be able to

scale and change the game for them so

really focusing on those problem sets

that you know you're actually going to

have a meaningful impact that is the

most critical aspect of this Brian

schimp and Dr Industries CEO thanks for

joining me here on

stage