The Rise of Defense Tech in Southern California

Southern California is becoming a hotspot for defense startups, attracting massive investments from Silicon Valley venture capital firms and tech giants. This marks a significant shift from decades of resistance to the defense industry.

Key Players and Innovations

Mach Industries, a Huntington Beach startup founded by 21-year-old MIT dropout Ethan Thornton, has raised $185 million in venture funding. The company develops advanced weapons, including a high-altitude glider that can deliver explosives with precision without GPS, and a vertical takeoff cruise missile. Thornton's goal is to deter a war in the Pacific with China through massive investment in technology.

Other notable startups include:

• Anduril Industries: Raised $2.5 billion, focusing on drones and autonomous defense systems.
• Impulse Space: Raised $300 million for in-space transportation technologies.
• Chaos Industries: Raised $275 million for advanced threat-detection systems.
• Apex Space: Raised $200 million for small satellite manufacturing.

The Shift in Silicon Valley's Attitude

For years, Silicon Valley avoided defense contracts due to ethical concerns, such as protests over projects like Google's Project Maven. However, geopolitical tensions, including China's military buildup and the Russia-Ukraine conflict, have changed this. Venture capital deals in LA-area defense tech exceeded $4 billion this year, more than double the previous year.

Legacy companies and AI startups are also involved. Google, Anthropic, OpenAI, and xAI were each awarded contracts worth up to $200 million by the Department of Defense for AI capabilities.

Historical Context and Future Outlook

Silicon Valley has a long history with defense, dating back to Hewlett Packard's work in WWII and the development of ARPAnet. Military spending has surged to a record $2.7 trillion in 2024, driven by global conflicts. President Trump's call for a "golden dome" defense system could cost up to $3.6 trillion over two decades.

Startups like K2 Space are benefiting from this trend, raising $110 million and developing cost-effective satellites for national security applications. The military is also recruiting tech executives and providing seed funding through programs like the Small Business Administration.

Workers at K2 Space, a beneficiary of venture capital and military funding.

Production of the Glide high-altitude glider at Mach Industries.

This convergence of tech innovation and defense needs is creating new opportunities, with students and startups increasingly focused on national security technologies.