Dear Reader,
Happy Friday!
TGIF!
No more basketball for us.
We got our butts kicked last week. You win some, you learn some.
Anyway, today I’d like to talk about one of the most under-reported stories out there - this is why we’re here!
We love history.
We love the study of great power competition.
We’ve focused on warfare a lot over the years, much to our competitive disadvantage.
There’s an old expression in our industry that if you focus on warfare you don’t make money, because nobody really likes to buy that kind of stuff.
They don’t like to buy reports on it.
We have had a different experience but it certainly has limited our growth relative to many of our competitors.
But look - you gotta be honest with yourself.
You gotta focus on what you’re interested in, or what’s the point of running your own business?
Anyway, May 2, 2024, a date meaningless to a lot of people, will actually go down as one of the biggest days in military history.
On that day an F-16 flew former Vietnam pilot, Air Force Secretary Frank Kendall, completely controlled by AI.
When you look at a “Big Bang” event in military history, the fact that the Air Force Secretary got into a plane and trusted it to fly him around completely autonomously, is mind-blowing.
Imagine…
Having a Tesla drive you down the road is one thing.
Getting into an F-16 and having its autopilot fly you around? A whole different thing.
So, why do I bring this up now? 18 months after the fact?
Well, I did talk about it back then, but if you caught 60 Minutes’ show on Anduril’s unmanned jet, Fury…
The latest news out is that this Fury just just made its first unmanned flight.
This is a huge step forward…
There’s no cockpit. No place for a pilot.
This jet is designed as a “wingman.” Its job is to fly out ahead of manned fighters, find the enemy first and protect manned fighters.
It just goes to show you how much AI is already starting to change warfare.
I was reading a Wired Magazine interview of Palantir CEO Alex Karp. He’s asked, “what have you learned about warfare from watching the war in Ukraine? What have you learned about the battlefield of the future?”
He says, basically, he can’t really speak on the record except to say, “broadly speaking, at the beginning of the war, it was very clear that you would need software orchestration of small objects.”
So basically, you needed software to control a bunch of things - drones, robots, all these things need to be connected by software smarter and faster than the other guy’s software.
You need better chips and better software than the opposition.
So it’s a very different way of waging war.
There used to be a TV show where teams built robots to compete against other teams’ robots.
That’s what this is starting to look like.
It’s astonishing, and it’s happening in real time.
Now, Anduril is a private company.
But it’s not the only game in town.
We’ve done very well with our AI defense stocks in Breakthrough Wealth.
If you’re a Breakthrough Wealth Member, log on to our website and read the reports on the public companies pushing the same kinds of tech.
These guys are not sitting around letting Anduril become the only game in town.
And as I’ve said before, defense contractors at the center of this strategy — especially those building modern missile systems, drones, and critical defense AI — will be the biggest beneficiaries of this pivot.
With our newest defense stock report, we’ve pinpointed the American and allied contractors positioned at the center of this geopolitical shift.
These are companies building the future of defense.
Make sure to position yourself for what’s coming.
“The Buck Stops Here,”
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Written by Dylan Jovine