The resurgence of defense technology is transforming Silicon Valley’s approach to military investments, with startups like Castelion, founded by SpaceX alumni, gaining momentum. Increased geopolitical tensions, including the war in Ukraine and U.S.-China rivalries, have driven venture capital funding for defense startups up by over a third in two years, reaching nearly $40 billion. Palantir CEO Alex Karp stresses the importance of government collaboration with Silicon Valley, arguing that policymakers must adapt to the tech industry’s rapid innovation. Palantir’s market value has now surpassed $250 billion, exceeding that of traditional defense giants Lockheed Martin, Northrop Grumman, and General Dynamics combined. This shift signals a growing reliance on tech-driven military advancements and a redefinition of U.S. defense industry leadership.
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