Bloomberg Defense Tech Special | Bloomberg Tech 10/10/2025

US-China Relations and Geopolitical Instability - The US-China relationship is viewed as a defining conflict, with China having a long-term strategic plan to gain leverage over the US and its allies through industrial policy and military power [8][11][51] - Geopolitical instability extends beyond US-China tensions, including land wars in Europe, the Red Sea situation, and China's actions in the Philippines [8][9] - China is strategically using export controls on critical materials like rare earth magnets to exert influence [10][11] Defense Tech Industry and National Security - Defense tech is crucial for national security, requiring the onshoring of manufacturing and a focus on US and allied manufacturing [8][15] - The industry faces challenges including rare earth magnets supply and industrial labor shortages, particularly in areas like wire harness production [16][27][28] - There's a need for smart industrial policy involving tariffs, guaranteed off-take agreements, and strategies to solve supply chain issues at a national level [16][17] Anduril's Growth and Focus - Anduril has experienced rapid growth, projecting over 6500 employees and aiming to double revenue to over $2 billion this year, with a 400% ramp-up in production [3] - The company is shifting from experimental projects to mass production, focusing on integrating technology with war fighters [3][4] - Anduril emphasizes attracting top talent from tech companies and universities by offering exciting problems, a clear mission, and opportunities to work on cutting-edge technologies [22][23] Space Defense and True Anomaly - Space is increasingly seen as a battleground, with China being an early mover in developing space weapons [33][34] - True Anomaly is developing autonomous spacecraft and software to counter space-based threats and defend US space infrastructure [33][36][38] - The US needs dedicated space superiority capabilities and countermeasures to protect its infrastructure in space [36][38] Palantir's Perspective and Re-industrialization - Palantir views the US-China conflict as a long-term issue, emphasizing the need for American greatness and re-industrialization [61][68] - The company focuses on applying AI to enhance the productivity of the American worker and drive re-industrialization [65][66] - Palantir is involved in both commercial and government sectors, working with various businesses and the Department of War [65][56] Market Reactions and Investment Trends - News of increased tariffs on China and uncertainty about a meeting between President Trump and President Xi caused immediate market reactions, including declines in major indices and semiconductor stocks [5][31][60] - Venture capitalists are increasingly investing in defense tech startups, recognizing the long-term shift and the need to connect the government with the fast-paced tech sector [77] - Startups are not immune to supply chain risks, and investors are considering how tariffs could impact supply chains [83]