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military spending
The Rise of the Drone-Industrial Complex
A new force — Silicon Valley startup culture — has entered the fray, and the military-industrial complex equation is suddenly changing dramatically.
Feb 11, 2025
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.
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As the US Empire Falls, We Must Take Care of Each Other
Americans have a hard road ahead of us working to create a future that is more humane and just, for ourselves and future generations.
Jan 25, 2025
Days before taking office, President Donald Trump and his wife Melania launched their own cryptocurrency. His organization also plans to move forward with new real estate projects in Saudi Arabia. Eric Trump, the president’s son, oversees the company’s real estate interests and announced the expansion at a conference in Abu Dhabi, Saudi Arabia in October. Eric also mentioned that his father will be the “most pro-crypto president in U.S. History.” A sitting president prioritizing personal capitalist expansion over the people along with the outgoing Democratic administration’s support of genocide in Palestine signals the country’s imperial decline.
For humanity to move toward genuine peace, the United States empire must end. All empires end, because they become untenable domestically and internationally. Anti-imperialist freedom fighters have noted this extensively. The British Empire receded because it couldn’t survive fighting in WWII and violently maintain colonies as liberation movements won independence. The French and Haitian revolutions ended France’s imperial rule as it overextended itself working to cling to its colonies in the Caribbean and Africa.
Even imperial proponents have noted that the U.S. imperial decline is visible on the horizon. The U.S. has seen an incredible amount of domestic social and political unrest, specifically in the last six years. The Covid-19 pandemic exposed fatal and obvious flaws within the U.S. for-profit healthcare system that is still killing and disabling scores of people daily. The pandemic—along with the continuing crisis of anti-Black police violence—saw the nation explode with uprisings.
his nation-state and its imperial hegemonic misdeeds are a hindrance to the quality of life for the vast majority of people within the country and the world.
Houselessness in the U.S. rose in the last year 18% with over 770,000 unhoused (certainly an undercount). Rising rents, climate disaster, wealth inequality, declining life expectancy, and corporate theft (inflation) are major markers of an unsustainable future for U.S. residents. Bipartisan U.S. policy seems to be greater investment into military and policing rather than a cohesive social safety net.
A further indicator of U.S. imperial decline is the considerable resistance to the idea of capitalism as a viable economic system. The U.S. remains the wealthiest nation in the history of the world with the largest military and surveillance apparatus by a large margin. Its ability to control the United Nations is unmatched. The social, economic, and political hegemonic domination appears impenetrable.The world economy still centers the dollar because of the aforementioned factors. The issue for the U.S. empire is that it markets itself, both home and abroad, as a bastion of freedom. That marketing of U.S. brand “freedom” is evaporating in the U.S. public psyche. It’s why you see desperate measures to control social media, like banning TikTok, ending DEI programs, or not teaching accurate U.S. History.
The decline of the U.S. empire scares most people for many reasons, but the idea needs more interrogation. This nation-state and its imperial hegemonic misdeeds are a hindrance to the quality of life for the vast majority of people within the country and the world. While the most marginalized suffer first and worst, the widening net of wealth inequality consumes more humans daily.
In the beginning of the Covid-19 pandemic, we saw communities fill in gaps where the state and capitalist-based healthcare failed us. People worked tirelessly to keep their families, friends, and neighbors safe. Strangers became community, and informal networks were built and helped folks survive. We see this continually with climate catastrophes hitting different parts of the country. That sort of collective consciousness is needed along with making sure that we don’t have a state and socioeconomic system geared toward harm. In the midst of imperial decline, Americans have a hard road ahead of us working to create a future that is more humane and just, for ourselves and future generations. We deserve better.
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Biden’s Legacy Is Written In Blood
When I think of Joe Biden, I will think of every child I’ve seen dismembered and every home I’ve seen destroyed while I scrolled through social media for the last 15 months.
Jan 22, 2025
Last week, aerial photos from Los Angeles with blocks of homes reduced to ash hit social media timelines, leading people to understandably draw comparisons to Gaza. Destruction of entire neighborhoods is always heartbreaking. Home, where most of us spend a great deal of our time, shapes who we are. The memories and love a home can hold are much larger than whatever the square footage may be. Behind all the devastation are all the people in power that make all of this tragedy and grief possible in the first place.
Joe Biden’s term as president ended on Monday, and the world doesn’t have to guess what his legacy will be. The crimes he is responsible for are written into history with the blood of hundreds of thousands of Palestinians, each one coming from a neighborhood his administration helped turn to ash. The drone images from Gaza and Los Angeles share the same hues of grey and heartache, and originate from the same flavors of greed and contempt for human dignity. And now, all of a sudden, we have a cease-fire, with no thanks to Biden. When I think of Joe Biden, I will think of every child I’ve seen dismembered and every home I’ve seen destroyed while I scrolled through social media for the last 15 months. And I will remember that none of it needed to happen; he greenlighted and funded the genocide of the Palestinian people. He, and powerful people like him, let insurance companies back out of insuring homes and fueled the climate crisis for decades to come.
Another clear demonstration of his inaction occurred last week, when he suddenly removed Cuba from the State Sponsor of Terrorism list, a demand we’ve been making to his administration for four years. The designation, along with the U.S. embargo, has caused levels of deprivation the country hasn’t seen since the Soviet collapse. People in Cuba were starving because of Joe Biden’s decision to keep them on the SSOT list, and he only removed them on his way out the door.
I hope our impact eventually defines the legacies of the warmongers like Biden and Trump, so that the world cannot forget who they are or what they did.
A small part of accountability for Biden and his partners in genocide like former Secretary of State Antony Blinken, former Vice President Kamala Harris, former Defense Secretary Lloyd Austin, former State Department spokesperson Matt Miller, and others will be remembering the people that were killed in Gaza with their weapons shipments or because of their lies. Like George W. Bush, the man responsible for the death of a million Iraqis and the country’s destruction, who took up painting in his old age to make people forget what he had done in their name—Biden has time to change what people may think of him. We owe it to the Palestinian people to not develop amnesia while bombs could still rain over their heads. Biden could have ended the genocide at any moment, and he chose not to. And because of that, tens of thousands of children are dead, the only reason being that they were born in the largest open air prison in the world.
It’s hard to speak of legacies when the dust from the bombs dropped on Iraq hasn’t even settled. Babies are still being born in Fallujah with life-threatening deformities and diseases. For over a year, Israel continued to drop U.S.-made bombs and, on multiple occasions, chemical weapons on the people of Gaza. From the environmental impact of the nonstop bombardment to the public health outcomes of living without proper shelter for so long, the extent of Biden’s crimes in Gaza won’t be understood entirely for decades.
It’s also hard to speak of legacies as a new president who has promised to stay the course of genocide takes office. In reality, the genocide of Palestinians will be several U.S. presidents’ legacies—even before Biden.
Evaluating Biden’s legacy on the domestic and international stages shouldn’t be done separately. In fact, the struggles faced by regular people all over the world and across the country make a whole lot more sense when you realize our issues are inseparable. As homelessness reached an all-time high in the United States, Biden and Congress sent billions of dollars in “aid” to Israel and Ukraine. As homeless encampments were swept in Los Angeles as the city burned, Biden notified Congress of another $8 billion in weapons to Israeli Prime Minister Benjamin Netanyahu’s military. People are anxious every day about whether or not they will be able to pay rent, afford groceries, or their children’s medicine. While the people suffer, there only seems to be one thing that the people in power (no matter who it is) care about—maintaining global hegemony no matter the human cost. Every year of his presidency, just like every other president, Biden signed a Pentagon budget that allocated more money to war than ever before and failed to improve the lives of the masses. Biden’s legacy as a whole is a disdain for Palestinian life, and to some lesser degree, American life.
I spend a lot of my time thinking about what people like myself, in the belly of the beast, ought to do to take responsibility for all the suffering our government, regardless of the president, has caused. I think of Che Guevara, who once said, “I envy you. You North Americans are very lucky. You are fighting the most important fight of all—you live in the belly of the beast.” As President Donald Trump returns to office to build his own legacy, and as Biden leaves behind four years and decades of consequences, I try very hard to remember that to be in this struggle is a privilege of mine. If I abhor the suffering forced on the Palestinians in Gaza, then I realize I live in the perfect place to do something about it. Trump and his new agenda are obstacles, but we’ve confronted plenty of obstacles under this system, which mobilizes all of its resources against the movement for peace.
When we finally win, I hope people remember our movement as one that took responsibility for our situation and found power when we thought we couldn’t. I hope our impact eventually defines the legacies of the warmongers like Biden and Trump, so that the world cannot forget who they are or what they did. Remember: It’s the people who can really define a president’s legacy. Let that propel you to take action and organize. Let that give you a glimmer of hope.
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