The last few decades have been a period of transition for defense. An increasing number of startups have begun to rival large defense primes, the industry has gradually become a calculus of both hardware and software, and exponential technologies have forced the DoD to rethink how it has traditionally done business. These changing conditions were some of the inputs to resulting in the DIU – Defense Innovation Unit – starting in 2015 within the Department of Defense, focused on accelerating the adoption of technology. In this episode recorded at a16z’s American Dynamism Summit in January, a16z General Partner Katherine Boyle is joined by the Director of the DIU, Doug Beck, plus two critical founders ushering in this new era of defense: Brian Schimpf, cofounder and CEO of Anduril and Brandon Tseng, cofounder of Shield AI. So what does the next wave of defense innovation really look like? Let’s find out. Topics Covered: 00:00 - The Future of Defense Innovation 03:30 - The Defense Innovation Unit (DIU) 05:45 - Adoption of Startup tech by the DoD 07:42 - Acquisition, Budgeting, and Contracting 13:17 - Traditional Primes vs Startups 14:25 - Cost-Plus Fixed Fee Contracts 20:11 - The Replicator Program 22:26 - The New Threat Environment 27:11 - Scale and Readiness for Modern Warfare 32:15 - Procurement Reform and Feasibility 39:30 - Success Metrics for Defense Resources: Learn more about AD Summit 2024: www.a16z.com/adsummit Watch Brian’s stage talk at AD Summit 2024: https://a16z.com/securing-americas-future-how-technology-companies-and-washington-are-building-a-safer-world/ Watch all of the stage talks at AD Summit 2024: https://www.youtube.com/playlist?list=PLM4u6XbiXf5pAKmk1AeZ9964KGScf4lHM Find Katherine on Twitter: https://twitter.com/KTmBoyle Find Brandon and Shield AI on Twitter: https://twitter.com/shieldaitech Find Brain on Twitter: https://twitter.com/schimpfbrian Find Doug and the DIU on Twitter: https://twitter.com/diu_x Stay Updated: Find a16z on Twitter: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Subscribe on your favorite podcast app: https://a16z.simplecast.com/ Follow our host: https://twitter.com/stephsmithio Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.