Anduril will take 'a Tesla-like approach' to US defense tech

Anduril Industries is planning to construct a new factory to scale weapons production for the United States defense base. Anduril Industries Co-Founder and Executive Chairman Trae Stephens joins Market Domination Overtime to discuss this initiative.

Stephens explains that the legacy defense industry has traditionally focused on "really high-end expensive exquisite defense platforms," such as fighter jets, bombers, and aircraft carriers. However, he notes that as warfare evolves, "this is no longer the thing that works in conflict." With escalating global geopolitical tensions, Stephens observes "a rise of low-cost attritable systems that are highly autonomous," but supply is struggling to meet demand.

The planned factory, named Arsenal One, will adopt "a Tesla-like approach to production" to ensure they can meet the demands "being given to us by the warfighters." This approach suggests a focus on innovation, efficiency, and scalability in manufacturing, Stephens explains.

"What we're doing at Anduril is we're taking the risk upfront to build the capabilities and to build the infrastructure that we need to deploy those capabilities very quickly," Stephens, also a Founders Fund partner, tells Yahoo Finance. He added that the company is currently in the process of finding land to build this factory.

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This post was written by Angel Smith

Transcripción del vídeo

America's defense base is due for an upgrade and Silicon Valley is ready defense tech start up and has announced plans for a massive US factory to boost its output of autonomous weapons.

Having raised around $1.5 billion to fund that endeavor.

The company seeking to solve what it sees is a crucial problem with the current defense industrial base weapons and a production system that are too expensive and take too long to build.

Joining me now is Trey Stevens.

He's the executive chair and co founder of Anderl and partner at VC firm.

Founders Fund.

Trey is with me in the studio.

Thanks so much for being here.

So um let's start with this facility.

Um As I said, you guys have allotted $1.5 billion to build it.

You said you're not building it in San Francisco, I believe, but we don't know where you're building it.

But what, what is this for?

Why do you feel like you have to make this dedicated facility?

And as I understand it, what's gonna make it different is you can kind of build a lot of different things using the same system if I've understood it correctly.

But, but explain, that's right.

The, the legacy defense industry, especially since the end of the Cold War has been incredibly focused on really high end, expensive, exquisite defense platforms.

So things like multi $100 million fighter planes, bombers, multi billion dollar aircraft carriers and in the force posture that we had at that time, that was exactly what we needed to project power and ensure deterrence in international global affairs.

This is no longer the thing that works in conflict.

If you look at what's happened in not only Ukraine and Israel, but also in Armenia and Azerbaijan in the war games that are taking place around China and Taiwan, that potential conflict.

We see that there is a rise of low cost at TRD systems that are highly autonomous.

And so rather than, you know, people charging in with the very expensive systems, it's can we leverage robots to do these dirty, dull and dangerous jobs.

And so, and this is kind of the thesis that the company was built around now.

The problem is is that the capabilities that are the most necessary to win these potential future conflicts.

We literally need to add a zero to our inventory.

I mean, we're a full order of magnitude under supplied and of this type of this type of weapon system.

And the challenge with this is that, you know, maybe we're good to go on day zero of a conflict and maybe we're stretched a little bit by day 30 but we're nowhere near being ready for day 300.

And our defense industrial base doesn't have the ability to rapidly scale up production of these systems.

And you get things like stingers and javelins that are in high demand in Ukraine where we don't even have assembly lines to build these things anymore.

And so Arsenal one is really about taking the name of the factory or the name of the factory is Arsenal one.

Um And the idea behind it is to take a Tesla like approach to production.

So using software defined capabilities and infrastructure um that are modular and flexible, so we can respond very quickly to the demands that are being given to us by the war fighters.

So you definitely, and you all write about this in a sort of a mission statement if you will about this facility.

Um There's definitely a sense of urgency in that mission statement and a sense that as you say, we need, you know, multiples of what we have at our disposal right now, but you don't know where you're building it yet.

I mean, so I guess I'm asking when is the thing going to get built if there is indeed this acute need?

And do you already have that guaranteed customer in the US government?

Are they going to buy this stuff that you're making?

Yeah, it's a great question.

I think that the, again, the historically the way this is done is that the US taxpayer owns the burden for everything.

They own the burden for development, they own the burden for building out the infrastructure, they own the burden for buying the equipment, for sustaining the equipment.

And this isn't how technology works as you and your viewers undoubtedly know.

Um So what we're doing at and roll is we're taking the risk up front um to build the capabilities, um, and to build the infrastructure that we need to deploy those capabilities very quickly.

Now, is that a bet on ourselves that, you know, once we produce these things that the customer will show up to buy it?

Absolutely.

But I think that's the way that it should work.

There should be some risks taken from an industry perspective as well.

Um When do you think you'll be building a factory very soon?

I don't think, you know, our, our stated goal is to get to about 5 million square feet that's not going to happen overnight.

This will be a progression over time.

Um, we are doing site evaluations right now.

We hope to have that wrapped up certainly by the end of the year and then from there, we'll be able to rapidly move into, you know, a million square feet, 2 million square feet and start building out this system over time.

So, is it a purpose built building or you find an existing building and then you put this facility within it.

Yeah, I mean, we're evaluating both options.

I think, realistically, you know, the chances that we stumble upon, you know, an old Toyota manufacturing facility that we can turn into the Tesla Giga factory is uh slim, but that would obviously be awesome if there was some way to make that work, we're open to Greenfield, brownfield opportunities.

Uh And we're working very closely with a number of states that are incredibly interested, as you might imagine and having us show up with a factory and jobs in a cool mission.