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Ultimately, we do not want a drone company that manufactures weapons that commit war crimes to operate in North Dakota.
Correction: An earlier version of this article said that the Hermes 450 can carry and deploy up to two medium-range missiles. It has been updated to reflect the fact that it can actually carry four.
Recently, Aviation International published a conversation between the Department of Commerce Commissioner of North Dakota and a director at Thales group. The article, titled “North Dakota: The Silicon Valley of Drone Innovation,” makes the case that North Dakota is the go-to state for drone technology.
North Dakota’s strong ties with the drone industry formed a few years ago, with the state’s goal of transforming the state into ground zero for drone technology. By taking advantage of the state, its resources, and its people, the mission to turn North Dakota into a silicon valley for drones has already produced a vast network of unmanned aircraft system (UAS) technological hubs. However, in doing so it has also entangled North Dakotans into a deep relationship with Elbit Systems of America, a subsidiary of the Israeli company. This relationship is not comprehensively understood by North Dakotans nor our lawmakers.
Vantis is an aerospace company founded in North Dakota with an investment from the state five years ago. It helps facilitate commercial and private drone use by “utilizing North Dakota Department of Transportation (NDDOT) towers to deploy radars and other network technology around the state, lowering development costs by utilizing existing infrastructure.” Drone technology also helps monitor flooding, which is an issue in North Dakota on an annual basis. Thus, Vantis isn’t inherently a poor investment, and investing in drone technology for farming and environmental reasons isn’t necessarily a bad idea. However, three years ago, Vantis partnered with Thales, the 11th-largest weapons manufacturer in the world. Thales has long partnered with Israeli weapons manufacturer Elbit Systems to develop drone technology for various militaries around the world. Since this initial investment by the state of North Dakota into UAS, the state’s relationship with Elbit Systems started to cement itself as well.
North Dakota’s evolving relationship with drone technology presents both significant opportunities and serious ethical concerns.
In 2016, a researcher at North Dakota State University launched an initiative to bring an Elbit drone to help with agricultural research. The project was funded by North Dakota and Elbit Systems, which planned on selling the imagery from the research. The idea was that using a larger drone, the Hermes 450, would be a more cost-effective way to use drone technology for farming. But the Hermes drone isn’t just for farming; it’s also one of Elbit’s most deployed weapons by the Israeli army in Gaza. It’s been used to surveil and target Palestinians ever since it joined the Israeli air force fleet. It can carry and deploy up to four medium-range missiles. When the conversation about slaughtered civilians in Gaza comes up, many point fingers at the weapons giant Elbit.
On February 7, CODEPINK North Dakota visited our legislators in Bismarck to talk to them about Elbit. We sought clarity regarding the extent of the collaboration between North Dakota and Elbit Systems as North Dakotans concerned about our complicity in Israel’s war crimes in Gaza. What we learned was that our legislators knew—at best—about as much as we did or—at worst, and most commonly—nothing at all. State Sen. Bob Paulson (R-3) admitted to not knowing anything about Elbit Systems.
We delineated North Dakota’s disturbing relationship to Elbit—highlighting the atrocities that Elbit’s drones, particularly the Hermes 450, have been used to commit. One such atrocity was the well-documented attack on the World Central Kitchen in April 2024—widely considered to be a flagrant war crime under international law. However, Sen. Paulson denied the magnitude of Israel’s atrocities, dismissing our concerns and minimizing Israel’s responsibility with statements like: “That’s just war.” He also regurgitated Israeli propaganda, parroting the claim that Hamas uses “human shields” and put “babies in ovens” on October 7, 2023. We had to repeatedly rein in our conversation to get back to our main concern: Elbit Systems operations in North Dakota.
Our secondary concern was HB 1038, a bill to allocate $15 million in funding for the replacement of Chinese drones used by North Dakota state agencies and public institutions. Our worry is that, if passed, this bill could open up another avenue for North Dakota to deepen its relationship with Elbit Systems. We met with several other legislators over the course of the day. Some, like Sen. Randy Burckhard (R-5), were adamant that China “is out to get us,” while others, like Sen. Kathy Hogan (D-21) and Rep. Gretchen Dobervich (D-11), were far more sympathetic to our cause.
Ultimately, we do not want a drone company that manufactures weapons that commit war crimes to operate in North Dakota.
Northern Plains UAS Test Site (NPUASTS) in Grand Forks has voiced concerns about how overreliance on foreign technology could lead to disruptions if geopolitical tensions escalate. Geospatial data collected by a North Dakota drone could be hacked into and leveraged by foreign adversaries for intelligence or even used to disrupt infrastructure. If North Dakota is indeed worried about data from our UAS being hacked by a foreign adversary as a result of geopolitical tensions in the region of the technology’s origin, then we should be especially wary of sourcing our UAS from Israel.
Thankfully, HB 1038 was divided up into two separate parts in the North Dakota Senate. One part, “Division A,” included the allocation of $15 million to replace Chinese drones in North Dakota agencies and institutions. “Division B” had more to do with implementing a data management program, including an $11 million allocation to enable Vantis to ensure that data collected in North Dakota remains under state control. Division A ultimately failed in the Senate, whereas Division B passed and was signed into law by Gov. Kelly Armstrong on February 24, 2025.
Yet the reality remains. North Dakota’s evolving relationship with drone technology presents both significant opportunities and serious ethical concerns. While the state’s investment in UAS has the potential to enhance agricultural and environmental monitoring, it also links North Dakota with Elbit Systems, a company directly responsible for war crimes. The lack of transparency and awareness among state legislators about this relationship highlights the need for more informed discussions on the role of foreign technology in our state.
North Dakotans should consider the ethical implications of its partnerships and ensure that state resources are not connected to companies that are blowing up innocent men, women, and children, thereby making taxpayers complicit in such war crimes.
Combining the failed strategies of the war on terror and the war on drugs is not just misguided—it’s doubling down on failure.
In the capricious tapestry that is U.S. foreign policy, you can find a recurring pattern: Washington champions sovereignty as a holy principle of the international order when it aligns with its interests—think Ukraine under Biden—but casually disregards it when inconvenient.
The latest thread in this tapestry is last Thursday’s unprecedented State Department decision to formally designate eight groups, including major Mexican drug cartels such as the Sinaloa Cartel and Jalisco New Generation Cartel, as Foreign Terrorist Organizations (FTOs). Beneath the Trumpian tough-on-crime pose lies a policy that threatens to violate Mexico’s sovereignty and destabilize a vital relationship, and reinforces the imperialist tendency that has caused so much damage here in the U.S. and across the globe.
Labeling cartels as FTOs isn’t just a symbolic gesture; it opens the door for military intervention under the guise of counterterrorism. The U.S. could justify drone strikes or cross-border raids without Mexico’s consent—a blatant affront to its sovereignty. President Claudia Sheinbaum highlighted: “This classification should not serve as a pretext for the United States to invade our sovereignty.” Any such military intervention would violate Congress’s constitutional war powers, but Trump is unlikely to respect such legal niceties.
The desire to rise out of extreme poverty can not be bombed out of existence.
Elon Musk has made this clear. Musk recently declared on his social media platform that the FTO designation would make cartels “eligible for drone strikes,” a comment that is both legally dubious and deeply unsettling.
Mexican cartels are not terrorists in the way most people understand that word. They’re not trying to overthrow governments or spread extremist beliefs. Yes, they commit horrific acts of violence—killings, kidnappings, extortion—but their primary motive is profit, not ideology. As the narcocorrido (“drug ballad,” a musical genre popular on both sides of the border) "Clave Privada" by Banda el Recodo goes:
I was poor for a long time
Many people humiliated me
I began to earn money...
Things are flipped around now
Now they call me boss.
Understanding the driver of these cartels isn’t rocket science: it’s all about the Miguelitos (i.e. the 1000 peso note). Imposing travel bans might inconvenience cartel leaders but it won’t dismantle their billion-dollar empires. The terrorist designation is unlikely to even cut profit margins because many cartels are already designated as transnational criminal organizations (TCOs), so the FTO designation does not provide significant new policy tools to target their finances.
Drone attacks are unlikely to stop a notoriously violent business where cartel leaders are already frequently killed in assassinations by competitors or shootouts with government forces. The war on terror has shown to the U.S. that “Decapitate the Kingpin” is a loser’s game. In fact, Mexico’s own “kingpin strategy” targeting and elimination of high-ranking cartel members has created power vacuums and increased violence. Combining the failed strategies of the war on terror and the war on drugs is not just misguided—it’s doubling down on failure.
The desire to rise out of extreme poverty can not be bombed out of existence. Meanwhile, the other main drivers of this problem are illicit markets fueled by U.S. demand for drugs and corruption within Mexico—issues that require smarter policies to address. Words matter in policymaking. Using “terrorist” as a catch-all term is already destructive and distorting, from the U.S. “war on terror” to the Netanyahu-Biden-Trump war in Gaza to China’s oppression of the Uighur in Xinjiang. This action exacerbates the problem.
There’s something disturbingly familiar about this whole idea—a familiar whiff of paternalism. For decades, the U.S. has intervened in Latin America under various pretexts: fighting communism during the Cold War, waging war on drugs in the 1980s and 1990s, and now combating “terrorism.” The results have often been disastrous for the region. Designating cartels as FTOs feels like another chapter in this playbook: framing another country’s problems as existential threats to justify American imperialism. So long liberal internationalism, hello Make the Monroe Doctrine Great Again.
This approach doesn’t work in today’s interconnected world. Problems associated with drug trafficking—and migration—don’t respect borders; they require multilateral solutions rooted in trust and mutual respect—not unilateral declarations from Washington. Meanwhile, Trump is cutting thoughtful, nonviolent programs like U.S. funding for an organization that has reduced the number of children recruited by gangs to help move drugs and migrants across the border. Trump froze another program targeting fentanyl and methamphetamine trafficking at key ports.
None of this is meant to downplay the seriousness of cartel violence or its devastating impact on both sides of the border. Tackling this issue requires nuance and humility—especially from the U.S.. Instead of designating cartels as FTOs, policymakers should focus on strategies that address root causes: reducing demand for drugs through treatment programs; cracking down on gun trafficking from the U.S. into Mexico as some members of Congress are working to do; supporting anti-corruption efforts within Mexico; and strengthening bilateral cooperation rather than undermining it.
A new force — Silicon Valley startup culture — has entered the fray, and the military-industrial complex equation is suddenly changing dramatically.
Last April, in a move generating scant media attention, the Air Force announced that it had chosen two little-known drone manufacturers — Anduril Industries of Costa Mesa, California, and General Atomics of San Diego — to build prototype versions of its proposed Collaborative Combat Aircraft (CCA), a future unmanned plane intended to accompany piloted aircraft on high-risk combat missions. The lack of coverage was surprising, given that the Air Force expects to acquire at least 1,000 CCAs over the coming decade at around $30 million each, making this one of the Pentagon’s costliest new projects. But consider that the least of what the media failed to note. In winning the CCA contract, Anduril and General Atomics beat out three of the country’s largest and most powerful defense contractors — Boeing, Lockheed Martin, and Northrop Grumman — posing a severe threat to the continued dominance of the existing military-industrial complex, or MIC.
For decades, a handful of giant firms like those three have garnered the lion’s share of Pentagon arms contracts, producing the same planes, ships, and missiles year after year while generating huge profits for their owners. But an assortment of new firms, born in Silicon Valley or incorporating its disruptive ethos, have begun to challenge the older ones for access to lucrative Pentagon awards. In the process, something groundbreaking, though barely covered in the mainstream media, is underway: a new MIC is being born, one that potentially will have very different goals and profit-takers than the existing one. How the inevitable battles between the old and the new MICs play out can’t be foreseen, but count on one thing: they are sure to generate significant political turbulence in the years to come.
The very notion of a “military-industrial complex” linking giant defense contractors to powerful figures in Congress and the military was introduced on January 17, 1961, by President Dwight D. Eisenhower in his farewell address to Congress and the American people. In that Cold War moment, in response to powerful foreign threats, he noted that “we have been compelled to create a permanent armaments industry of vast proportions.” Nevertheless, he added, using the phrase for the first time, “we must guard against the acquisition of unwarranted influence, whether sought or unsought, by the military-industrial complex. The potential for the disastrous rise of misplaced power exists and will persist.”
Ever since, debate over the MIC’s accumulating power has roiled American politics. A number of politicians and prominent public figures have portrayed U.S. entry into a catastrophic series of foreign wars — in Vietnam, Cambodia, Laos, Iraq, Afghanistan, and elsewhere — as a consequence of that complex’s undue influence on policymaking. No such claims and complaints, however, have ever succeeded in loosening the MIC’s iron grip on Pentagon arms procurement. This year’s record defense budget of approximately $850 billion includes $143.2 billion for research and development and another $167.5 billion for the procurement of weaponry. That $311 billion, most of which will be funneled to those giant defense firms, exceeds the total amount spent on defense by every other country on Earth.
Over time, the competition for billion-dollar Pentagon contracts has led to a winnowing of the MIC ecosystem, resulting in the dominance of a few major industrial behemoths. In 2024, just five companies — Lockheed Martin (with $64.7 billion in defense revenues), RTX (formerly Raytheon, with $40.6 billion), Northrop Grumman ($35.2 billion), General Dynamics ($33.7 billion), and Boeing ($32.7 billion) — claimed the vast bulk of Pentagon contracts. (Anduril and General Atomics didn’t even appear on a list of the top 100 contract recipients.)
Typically, these companies are the lead, or “prime,” contractors for major weapons systems that the Pentagon keeps buying year after year. Lockheed Martin, for example, is the prime contractor for the Air Force’s top-priority F-35 stealth fighter (a plane that has often proved distinctly disappointing in operation); Northrop Grumman is building the B-21 stealth bomber; Boeing produces the F-15EX combat jet; and General Dynamics makes the Navy’s Los Angeles-class attack submarines. “Big-ticket” items like these are usually purchased in substantial numbers over many years, ensuring steady profits for their producers. When the initial buys of such systems seem to be nearing completion, their producers usually generate new or upgraded versions of the same weapons, while employing their powerful lobbying arms in Washington to convince Congress to fund the new designs.
Over the years, non-governmental organizations like the National Priorities Project and the Friends Committee on National Legislation have heroically tried to persuade lawmakers to resist the MIC’s lobbying efforts and reduce military spending, but without noticeable success. Now, however, a new force — Silicon Valley startup culture — has entered the fray, and the military-industrial complex equation is suddenly changing dramatically.
Along Came Anduril
Consider Anduril Industries, one of two under-the-radar companies that left three MIC heavyweights in the dust last April by winning the contract to build a prototype of the Collaborative Combat Aircraft. Anduril (named after the sword carried by Aragorn in J.R.R. Tolkien’s The Lord of the Rings) was founded in 2017 by Palmer Luckey, a virtual-reality headset designer, with the goal of incorporating artificial intelligence into novel weapons systems. He was supported in that effort by prominent Silicon Valley investors, including Peter Thiel of the Founders Fund and the head of another defense-oriented startup, Palantir (a name also derived from The Lord of the Rings).
From the start, Luckey and his associates sought to shoulder aside traditional defense contractors to make room for their high-tech startups. Those two companies and other new-fledged tech firms often found themselves frozen out of major Pentagon contracts that had long been written to favor the MIC giants with their bevies of lawyers and mastery of government paperwork. In 2016, Palantir even sued the U.S. Army for refusing to consider it for a large data-processing contract and later prevailed in court, opening the door for future Department of Defense awards.
In addition to its aggressive legal stance, Anduril has also gained notoriety thanks to the outspokenness of its founder, Palmer Luckey. Whereas other corporate leaders were usually restrained in their language when discussing Department of Defense operations, Luckey openly criticized the Pentagon’s inbred preference for working with traditional defense contractors at the expense of investments in the advanced technologies he believes are needed to overpower China and Russia in some future conflict.
Such technology, he insisted, was only available from the commercial tech industry. “The largest defense contractors are staffed with patriots who nevertheless do not have the software expertise or business model to build the technology we need,” Luckey and his top associates claimed in their 2022 Mission Document. “These companies work slowly, while the best [software] engineers relish working at speed. And the software engineering talent who can build faster than our adversaries resides in the commercial sector, not at large defense primes.”
To overcome obstacles to military modernization, Luckey argued, the government needed to loosen its contracting rules and make it easier for defense startups and software companies to do business with the Pentagon. “We need defense companies that are fast. That won’t happen simply by wishing it to be so: it will only happen if companies are incentivized to move” by far more permissive Pentagon policies.
Buttressed by such arguments, as well as the influence of key figures like Thiel, Anduril began to secure modest but strategic contracts from the military and the Department of Homeland Security. In 2019, it received a small Marine Corps contract to install AI-enabled perimeter surveillance systems at bases in Japan and the United States. A year later, it won a five-year, $25 million contract to build surveillance towers on the U.S.-Mexican border for Customs and Border Protection (CBP). In September 2020, it also received a $36 million CBP contract to build additional sentry towers along that border.
After that, bigger awards began to roll in. In February 2023, the Department of Defense started buying Anduril’s Altius-600 surveillance/attack drone for delivery to the Ukrainian military and, last September, the Army announced that it would purchase its Ghost-X drone for battlefield surveillance operations. Anduril is also now one of four companies selected by the Air Force to develop prototypes for its proposed Enterprise Test Vehicle, a medium-sized drone intended to launch salvos of smaller surveillance and attack drones.
Anduril’s success in winning ever-larger Pentagon contracts has attracted the interest of wealthy investors looking for opportunities to profit from the expected growth of defense-oriented startups. In July 2020, it received fresh investments of $200 million from Thiel’s Founders Fund and prominent Silicon Valley investor Andreessen Horowitz, raising the company’s valuation to nearly $2 billion. A year later, Anduril obtained another $450 million from those and other venture capital firms, bringing its estimated valuation to $4.5 billion (double what it had been in 2020). More finance capital has flowed into Anduril since then, spearheading a major drive by private investors to fuel the rise of defense startups — and profit from their growth as it materializes.
The Replicator Initiative
Along with its success in attracting big defense contracts and capital infusions, Anduril has succeeded in convincing many senior Pentagon officials of the need to reform the department’s contracting operations so as to make more room for defense startups and tech firms. On August 28, 2023, Deputy Secretary of Defense Kathleen Hicks, then the department’s second-highest official, announced the inauguration of the “Replicator” initiative, designed to speed the delivery of advanced weaponry to the armed forces.
“[Our] budgeting and bureaucratic processes are slow, cumbersome, and byzantine,” she acknowledged. To overcome such obstacles, she indicated, the Replicator initiative would cut through red tape and award contracts directly to startups for the rapid development and delivery of cutting-edge weaponry. “Our goal,” she declared, “is to seed, spark, and stoke the flames of innovation.”
As Hicks suggested, Replicator contracts would indeed be awarded in successive batches, or “tranches.” The first tranche, announced last May, included AeroVironment Switchblade 600 kamikaze drones (called that because they are supposed to crash into their intended targets, exploding on contact). Anduril was a triple winner in the second tranche, announced on November 13th. According to the Department of Defense, that batch included funding for the Army’s purchase of Ghost-X surveillance drones, the Marine Corps’ acquisition of Altius-600 kamikaze drones, and development of the Air Force’s Enterprise Test Vehicle, of which Anduril is one of four participating vendors.
Just as important, perhaps, was Hicks’ embrace of Palmer Luckey’s blueprint for reforming Pentagon purchasing. “The Replicator initiative is demonstrably reducing barriers to innovation, and delivering capabilities to warfighters at a rapid pace,” she affirmed in November. “We are creating opportunities for a broad range of traditional and nontraditional defense and technology companies… and we are building the capability to do that again and again.”
Enter the Trumpians
Kathleen Hicks stepped down as deputy secretary of defense on January 20th when Donald Trump reoccupied the White House, as did many of her top aides. Exactly how the incoming administration will address the issue of military procurement remains to be seen, but many in Trump’s inner circle, including Elon Musk and Vice President J.D. Vance, have strong ties to Silicon Valley and so are likely to favor Replicator-like policies.
Pete Hegseth, the former Fox News host who recently won confirmation as secretary of defense, has no background in weapons development and has said little about the topic. However, Trump’s choice as deputy secretary (and Hick’s replacement) is billionaire investor Stephen A. Feinberg who, as chief investment officer of Cerberus Capital Management, acquired the military startup Stratolaunch — suggesting that he might favor extending programs like Replicator.
In a sense, the Trump moment will fit past Washington patterns when it comes to the Pentagon in that the president and his Republican allies in Congress will undoubtedly push for a massive increase in military spending, despite the fact that the military budget is already at a staggering all-time high. Every arms producer is likely to profit from such a move, whether traditional prime contractors or Silicon Valley startups. If, however, defense spending is kept at current levels — in order to finance the tax cuts and other costly measures favored by Trump and the Republicans — fierce competition between the two versions of the military-industrial complex could easily arise again. That, in turn, might trigger divisions within Trump’s inner circle, pitting loyalists to the old MIC against adherents to the new one.
Most Republican lawmakers, who generally rely on contributions from the old MIC companies to finance their campaigns, are bound to support the major prime contractors in such a rivalry. But two of Trump’s key advisers, J.D. Vance and Elon Musk, could push him in the opposite direction. Vance, a former Silicon Valley functionary who reportedly became Trump’s running mate only after heavy lobbying by Peter Thiel and other tech billionaires, is likely to be encouraged by his former allies to steer more Pentagon contracts to Anduril, Palantir, and related companies. And that would hardly be surprising, since Vance’s private venture fund, Narya Capital (yes, another name derived from The Lord of the Rings!), has invested in Anduril and other military/space ventures.
Named by Trump to direct the as-yet-to-be-established Department of Government Efficiency, Elon Musk, like Anduril’s Palmer Luckey, fought the Department of Defense to obtain contracts for one of his companies, SpaceX, and has expressed deep contempt for the Pentagon’s traditional way of doing things. In particular, he has denigrated the costly, generally ill-performing Lockheed-made F-35 jet fighter at a time when AI-governed drones are becoming ever more capable. Despite that progress, as he wrote on X, the social media platform he now owns, “some idiots are still building manned fighter jets like the F-35.” In a subsequent post, he added that “manned fighter jets are obsolete in the age of drones anyway.”
His critique of the F-35 ruffled feathers at the Air Force and caused Lockheed’s stock to fall by more than 3%. “We are committed to delivering the world’s most advanced aircraft — the F-35 — and its unrivaled capabilities with the government and our industry partners,” Lockheed declared in response to Musk’s tweets. Over at the Pentagon, Air Force Secretary Frank Kendall had this to say: “I have a lot of respect for Elon Musk as an engineer. He’s not a warfighter, and he needs to learn a little bit more about the business, I think, before he makes such grand announcements as he did.” He then added, “I don’t see F-35 being replaced. We should continue to buy it, and we also should continue to upgrade it.”
President Trump has yet to indicate his stance on the F-35 or other high-priced items in the Pentagon’s budget lineup. He may (or may not) call for a slowdown in purchases of that plane and seek greater investment in other projects. Still, the divide exposed by Musk — between costly manned weapons made by traditional defense contractors and more affordable unmanned systems made by the likes of Anduril, General Atomics, and AeroVironment — is bound to widen in the years to come as the new version of the military-industrial complex only grows in wealth and power. How the old MIC will address such a threat to its primacy remains to be seen, but multibillion-dollar weapons companies are not likely to step aside without a fight. And that fight will likely divide the Trumpian universe.