Latest / Elon Musk Thinking / Latest: Elon Musk And Pete Hegseth Speech At SpaceX Headquarters, Discuss Military Technology!

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Latest: Elon Musk And Pete Hegseth Speech At SpaceX Headquarters, Discuss Military Technology! · Elon Musk Thinking

• 0:00
  Speaker 1: Latest interview of Elon Musk. If you like this episode,
• 0:03
  Speaker 1: just like Sharreon, follow this podcast.
• 0:05
  Speaker 2: Thank you. Back to the show. All right, welcome to Starbase, Texas.
• 0:20
  Speaker 2: This is a city.
• 0:22
  Speaker 3: It's actually legally a city that, thanks to the hard
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  Speaker 3: work of the SpaceX team, we built out of nothing
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  Speaker 3: and is now a gigantic rocket manufacturing system.
• 0:37
  Speaker 4: And for people out.
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  Speaker 2: There who are curious to see it, we're actually in
• 0:40
  Speaker 2: a public highway so you can come and visit and
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  Speaker 2: drive down the road and see the epic hardware. So
• 0:47
  Speaker 2: I think this is the first time that a rocket
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  Speaker 2: development program has actually been on a public highway, so
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  Speaker 2: you can come and see the epic stuff.
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  Speaker 4: We're on it today.
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  Speaker 2: To have a sectary of Pete Hexa and much of
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  Speaker 2: the senior leadership of the Pentagon here, it's an honor
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  Speaker 2: to have them visit. We just did a tour of
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  Speaker 2: the factory, and I think this it really helps illustrate
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  Speaker 2: how manufacturing and manufacturing at scale is critical to the
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  Speaker 2: strength of America.
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  Speaker 3: And I'll tell you a little bit just about the
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  Speaker 3: purpose of SpaceX.
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  Speaker 2: It's like, we want to make star Trek real, Okay,
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  Speaker 2: we want to make Starfleet Academy real so that it's
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  Speaker 2: not always science fiction, but one day the science fiction
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  Speaker 2: turns to science fact, and we have spaceships going through space,
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  Speaker 2: big spaceships with people going to other planets, going to
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  Speaker 2: the Moon, and ultimately going beyond our star system to
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  Speaker 2: other star systems where we may meet aliens or discover
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  Speaker 2: long dad alien civilizations. I don't know, but we want
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  Speaker 2: to go and we want to see what's happening, and
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  Speaker 2: we want to have epic futuristic spaceships with lots of
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  Speaker 2: people in them, traveling to places we've never been to before.
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  Speaker 4: Yeah, that's that's.
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  Speaker 2: The goal, and that's what I think the public thinks
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  Speaker 2: of when they think of Space Force. So on that note,
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  Speaker 2: I'd like to introduce the Secretary of Ward he Hexap.
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  Speaker 1: Thank you, you know, I'm spreciate, thank you very much.
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  Speaker 4: How about this Star Trek real star trucks. Yes, appreciate it.
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  Speaker 4: I love it.
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  Speaker 1: Well, what a tour, What an opportunity to be here
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  Speaker 1: at Star Base, Texas with Elon and the SpaceX team.
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  Speaker 1: There's nothing like this in America. There's nothing like this
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  Speaker 1: in the world. And what you have built and what
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  Speaker 1: you will build here is a testament to the strength
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  Speaker 1: of American ingenuity and American invention. So I want to
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  Speaker 1: thank all of you, all the folks out here for
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  Speaker 1: having us today. Elon, thank you so much for hosting us,
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  Speaker 1: for what you've built, for the vision you have for
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  Speaker 1: this company, the vision you have for our country, the
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  Speaker 1: vision you have for American innovation.
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  Speaker 4: I could not think of a.
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  Speaker 1: More fitting venue to continue our arsenal a freedom tour
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  Speaker 1: and to outline today the future of technological innovation at.
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  Speaker 4: The War Department. Those of you here at SpaceX will
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  Speaker 4: appreciate this.
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  Speaker 1: Knowing that as World War II was ending, the Secretary
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  Speaker 1: of War and Secretary of the Navy wrote to the
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  Speaker 1: National Academy of Sciences and declared that scientific research was
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  Speaker 1: essential to our national security to ensure continued preparedness.
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  Speaker 4: They wrote, the research.
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  Speaker 1: Scientists of the United States must be called upon to
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  Speaker 1: continue in peacetime some substantial portion that of which they
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  Speaker 1: have made so effectively during the stress of the present war.
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  Speaker 1: The competitive time element in developing those weapons and tactics
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  Speaker 1: may be decisive in future conflicts. You see, those Secretaries
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  Speaker 1: of War and Navy many decades ago recognize the importance
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  Speaker 1: that innovation and readiness holds for our national security.
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  Speaker 4: They knew what was at stake, the very freedoms of
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  Speaker 4: the country we hold dear all across the United States.
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  Speaker 1: Today, extraordinary innovation is unlocking news abilities for freedom, prosperity,
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  Speaker 1: and security. Now, the question before us is not whether
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  Speaker 1: or not the most powerful technologies of the century will
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  Speaker 1: reinforce free societies. Is it going to reinforce our free societies?
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  Speaker 1: Or will that technology be shaped and twisted by malign
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  Speaker 1: regimes that seek to use those technologies for control and coercion.
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  Speaker 1: You see, over the past several months, I've talked at
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  Speaker 1: length about the challenges we face.
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  Speaker 4: In transforming the War Department to.
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  Speaker 1: Address current and future missions, all in service of meeting
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  Speaker 1: the deeds of the twenty first century warfire. I'd like
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  Speaker 1: to think we've already made dramatic progress in the Pentagon's
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  Speaker 1: culture by reviving the warrior ethos, and we're moving out
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  Speaker 1: quickly and transforming our acquisition ecosystem as well.
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  Speaker 4: But today is.
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  Speaker 1: About how we supercharge innovation at the word of Department
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  Speaker 1: for the era ahead.
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  Speaker 4: Innovation is happening at a pace.
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  Speaker 1: We can't even foresee, and we need the entire enterprise
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  Speaker 1: our enterprise to embrace the urgency required for this moment.
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  Speaker 1: Since the end of the Cold War, the defense industrial
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  Speaker 1: base in our country has consolidated. This makes it difficult,
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  Speaker 1: if not impossible, for new creators of technical innovations to
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  Speaker 1: win business at our department. The result is a risk
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  Speaker 1: averse culture that prevents us from providing our warfighters with
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  Speaker 1: the best resources that America has to offer.
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  Speaker 4: That ends today. Simply put, the United.
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  Speaker 1: States must win the strategic competition for twenty first century
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  Speaker 1: technological supremacy, artificial intelligence, autonomous systems, quantum hypersonics, and long
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  Speaker 1: range drones.
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  Speaker 4: If you talk to Elon Musk long enough, he will
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  Speaker 4: tell you.
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  Speaker 1: How important hypersonics and long range drones are.
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  Speaker 4: Needs one hundred percent correct.
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  Speaker 1: Space capabilities, directed energy, and biotechnology.
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  Speaker 4: Are the new areas of global competition.
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  Speaker 1: The challenge is that our legacy approach to technological development
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  Speaker 1: assumes that technology moves in a predictable linear conveyor belt
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  Speaker 1: from lab to design to development to prototype to test
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  Speaker 1: and qualify a program of record, and can only be
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  Speaker 1: provided by a handful of companies that have consolidated dramatically.
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  Speaker 4: Now, while this system provided us with the weapons.
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  Speaker 1: That won the Cold War. It is archaic and inconsistent
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  Speaker 1: with the novel threat environment that we face today.
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  Speaker 4: At its core, this old approach has.
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  Speaker 1: The hubrist to assume that you can easily predict the future,
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  Speaker 1: that you can foresee how an invention becomes a weapon
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  Speaker 1: in eight easy steps, three decades from first discovery. Our
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  Speaker 1: system can not keep treating innovation as a decades long
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  Speaker 1: one way march that dramatically reduces who and what is
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  Speaker 1: able to run the gauntlet at our department to get.
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  Speaker 4: The capability to the warfire.
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  Speaker 1: Until this administration, the Trump administration, the department's process for
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  Speaker 1: fielding new capabilities had become just one more post Cold
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  Speaker 1: War peace dividend relic that has not kept up with
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  Speaker 1: the times. Worse than that, we've done nothing but add
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  Speaker 1: layer upon layer of committees and councils that coordinated but
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  Speaker 1: never decided. We created endless projects with no accountable owners.
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  Speaker 4: We have high churn with.
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  Speaker 1: Little progress and few outputs. That sounds about like the
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  Speaker 1: exact opposite of SpaceX. We treated innovation as a box
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  Speaker 1: to check, not an outcome to deliver. In short, when
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  Speaker 1: it comes to our current threat environment, we are playing
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  Speaker 1: a danger escape with potentially fatal consequences. We need innovation
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  Speaker 1: to come from anywhere and evolve with speed and purpose.
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  Speaker 1: You see, America's open scientific community is an advantage authoritarian
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  Speaker 1: regimes cannot replicate. They can read our scientific papers and
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  Speaker 1: copy our invention or distill.
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  Speaker 4: Our al Ai.
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  Speaker 1: Models, but they cannot replicate a culture like this, one
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  Speaker 1: of opened and distributed research.
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  Speaker 4: We need to be blunt here.
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  Speaker 1: We can no longer afford to wait a decade for
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  Speaker 1: our legacy prime contractors to deliver the next perfect system,
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  Speaker 1: only to find that it's delivered years behind schedule and cost.
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  Speaker 4: Ten times what it should. Winning requires a new playbook.
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  Speaker 1: Elon wrote it with his algorithm question every requirement, Delete
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  Speaker 1: the dumb ones, and accelerate like hell. That's why I
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  Speaker 1: want to make clear across the War Department and for
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  Speaker 1: our partners in the private sector, that our Undersecretary of
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  Speaker 1: War for Research and Engineering, Emil Michael, right here in
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  Speaker 1: the front row is the War Department's single Chief Technology
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  Speaker 1: Officer one CTO for the entire enterprise.
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  Speaker 4: Novel concept.
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  Speaker 1: As the sole CTO, E Meal will set the technical direction,
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  Speaker 1: lead the innovation ecosystem that will welcome progress from anywhere
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  Speaker 1: it resides, and he'll tell me face to face every
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  Speaker 1: day and frankly, whether we are gaining or losing the
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  Speaker 1: technology and innovation competition.
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  Speaker 4: He'll have the decision authority and will lead through.
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  Speaker 1: Rigorous evaluation with a focus on real, measurable outcomes.
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  Speaker 4: Now, Congress, and we have a member many members of
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  Speaker 4: Congress with us here today, will be our partner in this.
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  Speaker 1: By affirming the under Secretary's role as the department's CTO,
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  Speaker 1: we're carrying out the core mission for that Congress assigned
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  Speaker 1: in statute.
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  Speaker 4: The last Defense Bill.
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  Speaker 1: Expanded the CTO's authorities, including the power to direct military
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  Speaker 1: departments and other components to align around clear innovative outcomes.
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  Speaker 1: We will use them to deliver those outcomes.
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  Speaker 4: With speed and urgency.
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  Speaker 1: An empowered CTO will inject a disruptive mindset directly into
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  Speaker 1: our systems, directing the power of America's world leading scientists
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  Speaker 1: and entrepreneurs, our cutting edge labs, the tech ecosystem, and
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  Speaker 1: our capital markets to build what the warfighter needs, but
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  Speaker 1: to do so better, faster and cheaper.
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  Speaker 4: And Emil is the right man to do it. You see,
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  Speaker 4: this isn't about military structure. This is about building an
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  Speaker 4: innovation pipeline that.
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  Speaker 1: Cuts through the overgrown bureaucratic underbrush and clears away the
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  Speaker 1: debris elon.
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  Speaker 4: Style, preferably with a chainsaw, and to do so at
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  Speaker 4: speed and urgency that meets the moment.
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  Speaker 1: As I've said repeatedly to every audience, the President of
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  Speaker 1: the United States and I have the backs of our
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  Speaker 1: warfighters who have to make split second life and death
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  Speaker 1: decisions on the battlefield. And I want this audience to
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  Speaker 1: know that we also have the backs of innovators who
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  Speaker 1: share that very same urgency. American taxpayers, especially those parents
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  Speaker 1: whose sons and daughters have answered the call to serve
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  Speaker 1: I swore in ten more today demand, and I demand,
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  Speaker 1: and we demand that we arm our warfighters with overwhelming
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  Speaker 1: and lethal technology right now, not a decade from now.
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  Speaker 4: In modern warfare, the fastest.
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  Speaker 1: Innovator and iterator will be the winner, and no one
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  Speaker 1: can out innovate an American entrepreneur who has been liberated
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  Speaker 1: from the constrains of stifling bureaucracy.
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  Speaker 4: That old era ends today.
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  Speaker 1: We are done running a peacetime science fair while our
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  Speaker 1: potential adversaries are running a wartime arms race.
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  Speaker 4: Right now.
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  Speaker 1: From garage startups to factory floors to boardrooms across our nation.
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  Speaker 1: The question of how to harness innovation coming out of America's.
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  Speaker 4: AI ecosystem is front and center, and rightfully.
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  Speaker 1: So, because it has the potential to disrupt and transform
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  Speaker 1: every area of human endeavor. The same is true in
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  Speaker 1: the Department of War. President Trump's AI Executive Order spells
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  Speaker 1: out our approach succinctly. It is the policy of the
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  Speaker 1: United States to sustain and enhance America's global AI dominance
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  Speaker 1: in defense of human flourishing, economic competitiveness, and national security. That,
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  Speaker 1: ladies and gentlemen, is the War Department's mission.
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  Speaker 4: We must ensure that America's.
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  Speaker 1: Military AI dominance so that no adversary can exploit that
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  Speaker 1: same technology to hold our national security interests for our
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  Speaker 1: citizens at risk. America first in every domain. Last month,
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  Speaker 1: I took.
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  Speaker 4: The first step toward changing how the.
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  Speaker 1: Department does business with frontier AI technologies when we announce
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  Speaker 1: the rollout of Genai with our partners from Google, and
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  Speaker 1: I want to thank the Google team for leaning forward
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  Speaker 1: and making the investment to get their Gemini app to
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  Speaker 1: about three million.
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  Speaker 4: Users in the War Department.
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  Speaker 1: But today we're excited to announce the next frontier AI
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  Speaker 1: model company to join genai dot MIL and that is
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  Speaker 1: GROC from Xai, which will go live later this month.
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  Speaker 1: So I want to thank you Elon and your incredible
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  Speaker 1: team for leaning forward with us on as well.
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  Speaker 4: Very soon we will have the world's leading.
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  Speaker 1: AI models on every unclassified and classified network throughout our department.
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  Speaker 1: Long overdue to further that, Today, at my direction, we're
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  Speaker 1: executing an AI acceleration strategy that will extend our lead
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  Speaker 1: in military AI established.
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  Speaker 4: During President Trump's first term.
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  Speaker 1: This strategy will unleash experimentation, eliminate bureaucratic barriers, focus on investments,
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  Speaker 1: and demonstrate the execution approach needed to ensure we lead
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  Speaker 1: in military AI and that it grows more dominant.
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  Speaker 4: Into the future. In short, we will win this race
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  Speaker 4: by becoming an.
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  Speaker 1: AI first war fighting force across all domains, from the
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  Speaker 1: back offices of the Pentagon to the tactical edge on
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  Speaker 1: the front line. The catalyst for this acceleration will be
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  Speaker 1: seven pace setting projects focused on mission.
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  Speaker 4: Threads across war fighting, intelligence.
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  Speaker 1: And enterprise missions, each with a single accountable leader, aggressive timelines,
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  Speaker 1: and measurable outcomes that answer a familiar question, Elon, what
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  Speaker 1: have you accomplished this week. This is the execution standard
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  Speaker 1: for AI first transformation. Each of the seven pace setting
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  Speaker 1: projects will use the following model, one owner who reports
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  Speaker 1: monthly on their progress.
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  Speaker 4: These projects will not be run.
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  Speaker 1: In a vacuum, but will work directly with warfighters and
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  Speaker 1: transition partners to ensure we incorporate real time operational feedback.
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  Speaker 1: We expect rapid iterations with failure accelerating the learning curve.
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  Speaker 1: These are not science projects, They are not governance boards.
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  Speaker 4: They are the execution standard for the entire department.
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  Speaker 1: We will not win the future by sprinkling AI onto
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  Speaker 1: old tactics.
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  Speaker 4: Like digital pixie dust. We will win by discovering entirely
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  Speaker 4: new ways of fighting.
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  Speaker 1: That's why we will run continuous experimentation campaigns, quarterly force
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  Speaker 1: unforced combat labs with AI coordinated swarms, agent based cyber defense,
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  Speaker 1: and distributed command and control, pushing the envelope learning from
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  Speaker 1: failure at every stop, which is exactly what this place does.
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  Speaker 1: You see, our department doesn't accept failure in the past,
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  Speaker 1: and so we never fail, which means we never learn.
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  Speaker 1: We're flipping that dynamic. Before talking about the new rules
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  Speaker 1: of the game, let me talk about a little bit
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  Speaker 1: more about our new team, because no game can be won.
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  Speaker 4: Without the right team, and we're proud to announce that
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  Speaker 4: mister Cameron Stanley has been.
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  Speaker 1: Appointed the new Chief Digital and Artificial Intelligence Officer CEAO
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  Speaker 1: of our War Department. CAM will be leading a new team,
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  Speaker 1: many of whom have forgone, thank you, or left lucrative
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  Speaker 1: careers at pioneer companies such as AWS, Data, Bricks, Palenteered
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  Speaker 1: Meta to join the fight.
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  Speaker 4: This team will not only.
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  Speaker 1: Provide a catalyst for change in this department, but will
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  Speaker 1: also act, we believe, as a.
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  Speaker 4: Magnet for other talented members of the.
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  Speaker 1: Tech community who want to join us in doing the
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  Speaker 1: mission focused work to protect our great Republic.
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  Speaker 4: So let's talk about the new rules.
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  Speaker 1: First, Speed, speed wins, speed dominates.
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  Speaker 4: Our enterprise currently.
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  Speaker 1: Operates on staffing and committee cycles measured in months and years,
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  Speaker 1: and that's unacceptable.
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  Speaker 4: Military AI is going to be a race for the
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  Speaker 4: foreseeable future where the risks.
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  Speaker 1: To US national security of moving too slowly outweigh the
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  Speaker 1: impacts of imperfect alignment. To do this, Cam and his
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  Speaker 1: team at CDAO will define AI deployment velocity metrics for
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  Speaker 1: all the pace setting projects in the next thirty days
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  Speaker 1: and report at least monthly after that. These will become
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  Speaker 1: the new benchmarks for programs across the department.
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  Speaker 4: Second, bureaucratic blockers. If you work with Elon, you know
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  Speaker 4: he finds the blockers and you remove them.
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  Speaker 1: We will take a wartime approach to people and policies
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  Speaker 1: that block this progress.
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  Speaker 4: You want to block to work somewhere else.
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  Speaker 1: Barriers to data sharing, authority to operate or ato's test
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  Speaker 1: and evaluation, and contracting are now treated as operational risks,
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  Speaker 1: not simply bureaucratic inconveniences.
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  Speaker 4: We are blowing up these barriers. That's why today, at
• 19:47
  Speaker 4: my direction, I'm.
• 19:47
  Speaker 1: Establishing a barrier removal SWAT team under RNE with the
• 19:53
  Speaker 1: authority to waive non statutory requirements and escalate to our
• 19:56
  Speaker 1: great Deputy Secretary Steve Feinberg, anything that slows down the
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  Speaker 1: acceleration of AI capabilities.
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  Speaker 4: Third compute resource.
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  Speaker 1: We will invest heavily in expanding our access to AI
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  Speaker 1: compute from data centers to the tactical edge, and will
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  Speaker 1: tap into hundreds of billions of dollars in private.
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  Speaker 4: Capital flowing into American AI.
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  Speaker 1: President Trump's executive order has directed us to build data
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  Speaker 1: centers on military land and to work with the Department
• 20:27
  Speaker 1: of Energy to ensure that we dramatically increase the number
• 20:30
  Speaker 1: and breadth of resources needed to power this computing infrastructure.
• 20:36
  Speaker 1: We will work together with our partners at Google and
• 20:38
  Speaker 1: AWS and Oracle and SpaceX, Microsoft and others on these initiatives.
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  Speaker 4: Fourth pillar, especially in this room, you'll understand it is talent.
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  Speaker 1: We will use every hiring and pay authority available to
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  Speaker 1: us to bring the best American technical talent and reward
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  Speaker 1: effective AI train informations by our workforce.
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  Speaker 4: We're going to.
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  Speaker 1: Heavily leverage President Trump's Tech Force initiative to bring in
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  Speaker 1: the best and brightest from industry and academia, with people
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  Speaker 1: like Elon David Sachs, Emil Mike and others from the
• 21:15
  Speaker 1: entrepreneurial and business world already in government, we have shown
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  Speaker 1: that we can and that we must enlist the world's
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  Speaker 1: leading talent in this cause. Fifth Responsible AI. Today, I
• 21:31
  Speaker 1: want to clarify what responsible AI means at the Department
• 21:36
  Speaker 1: of War. Gone are the days of equitable AI and
• 21:41
  Speaker 1: other DEI and social justice infusions that constrain and confuse
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  Speaker 1: our employment.
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  Speaker 4: Of this technology.
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  Speaker 1: Effective immediately responsible AI at the War Department means objectively
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  Speaker 1: truthful AI capabilities employed securely and within the laws governing
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  Speaker 1: the activities of the Department.
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  Speaker 4: We will not employ AI models that won't allow you
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  Speaker 4: to fight wars.
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  Speaker 1: We will judge AI models on this standard alone, factually accurate,
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  Speaker 1: mission relevant, without ideological constraints that limit lawful military applications.
• 22:19
  Speaker 1: Department of War AI will not be woke. It will
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  Speaker 1: work for US. We're building war ready weapons and systems,
• 22:28
  Speaker 1: not chatbots for an Ivy League faculty Lounge six. And finally,
• 22:36
  Speaker 1: data AI is only as good as the data that
• 22:38
  Speaker 1: feeds it, and the US military has an asymmetric data
• 22:42
  Speaker 1: advantage from two decades of military and intelligence operations that
• 22:45
  Speaker 1: no other military in the world can replicate. But right
• 22:49
  Speaker 1: now we are under utilizing this advantage. Too much of
• 22:53
  Speaker 1: our data is stranded. It's stuck in bespoke program databases,
• 22:57
  Speaker 1: locked behind Title ten or two, Title fifty stove pipes,
• 23:01
  Speaker 1: invisible to operators, engineers, and industry who could help us
• 23:05
  Speaker 1: exploit it with winning speed and scale. And that's why today,
• 23:10
  Speaker 1: at my direction, CDO will exercise its full authority to
• 23:14
  Speaker 1: enforce the DOW Data Decrees and make all appropriate data
• 23:19
  Speaker 1: available across federated IT systems for AI exploitation, including mission
• 23:25
  Speaker 1: systems across every service and component. Each service secretary and
• 23:32
  Speaker 1: component head will submit catalogs of their current data assets.
• 23:35
  Speaker 4: To the CDO within thirty days.
• 23:39
  Speaker 1: Denials of data access request will be reported to the
• 23:41
  Speaker 1: CTO within seven.
• 23:43
  Speaker 4: Days, and they better have a good justification today.
• 23:48
  Speaker 1: I'm also directing the Undersecretary for Intelligence and Security, Brad Hansel,
• 23:53
  Speaker 1: to ensure appropriate data from across our intelligence enterprise receives
• 23:57
  Speaker 1: the same treatment and can be fully levered to war
• 24:00
  Speaker 1: fighting capability, development and operational advantage. AI is only as
• 24:04
  Speaker 1: good as the data that it receives, and we're going
• 24:07
  Speaker 1: to make sure that it's there. Persistent barriers to data
• 24:11
  Speaker 1: access will be escalated to the Deputy Secretary of War
• 24:14
  Speaker 1: for resolution with authority to reassign or terminate personnel or
• 24:19
  Speaker 1: withhold funding from non compliant activities within the statutory limits.
• 24:25
  Speaker 4: We'll be clear here.
• 24:26
  Speaker 1: As I said, data hoarding is now a national security risk,
• 24:30
  Speaker 1: and we will treat it that way.
• 24:35
  Speaker 4: AI is an important part of the future.
• 24:38
  Speaker 1: But here's another truth that we've ignored for too long.
• 24:41
  Speaker 1: Beyond AI, we've treated every other kind of innovation as if.
• 24:46
  Speaker 4: They're the same as you know they're not.
• 24:50
  Speaker 1: We need to break down unnecessary barriers to rapid technological development, adoption,
• 24:55
  Speaker 1: and transition. Some of you will remember this a generation
• 24:59
  Speaker 1: to Goo. One of my predecessors, in a dinner speech
• 25:03
  Speaker 1: to industry, now infamously known as the Last Supper, advocated
• 25:08
  Speaker 1: for the consolidation of our defense industrial base. This consolidation
• 25:13
  Speaker 1: created a closed innovation ecosystem dominated by just a handful
• 25:18
  Speaker 1: of prime contractors. The results have been characterized by soaring costs,
• 25:24
  Speaker 1: sluggish delivery, and stagnant innovation. That's what President Trump's recent
• 25:30
  Speaker 1: Executive Order on the Defense Industrial Base and Defense Companies
• 25:34
  Speaker 1: seeks to address.
• 25:37
  Speaker 4: It makes crystal clear.
• 25:39
  Speaker 1: That the priority of the legacy prime contractors must be
• 25:42
  Speaker 1: our nation's national security, not the next earnings call. That
• 25:48
  Speaker 1: means less focus on stock buybacks and more investment on
• 25:53
  Speaker 1: the men and women on the factory floor.
• 25:56
  Speaker 4: It means less stockholder.
• 25:58
  Speaker 1: Dividends and more investment in infrastructure, plant and equipment. Today,
• 26:06
  Speaker 1: that old era comes to an end.
• 26:10
  Speaker 4: The Department of.
• 26:11
  Speaker 1: War is reopening to the disruptive energy and agile creativity
• 26:15
  Speaker 1: of our nation's tech startups. Funded by our world's leading
• 26:20
  Speaker 1: capital markets. I'm directing my chief Technology officer to leave
• 26:24
  Speaker 1: this charge and his wingman, as always in this effort
• 26:27
  Speaker 1: under Secretary for Acquisitions and Sustatement Mike Duffie. For too
• 26:32
  Speaker 1: long we organized our ecosystem around stages and silos, labs
• 26:37
  Speaker 1: over here, so called rapid units over there, commercial outreach
• 26:42
  Speaker 1: in a different building or on another coast altogether, and
• 26:45
  Speaker 1: warfare fighters somewhere.
• 26:47
  Speaker 4: At the end, almost an afterthought.
• 26:50
  Speaker 1: The result is duplication, drift, and confusion. And like the
• 26:55
  Speaker 1: acquisition process, we are already fixing the creation of organizations
• 27:00
  Speaker 1: to work around the problems in the innovation ecosystem. Rather
• 27:04
  Speaker 1: than taking the buld steps needed to transform it, we
• 27:08
  Speaker 1: created an old ecosystem to get around the actual system.
• 27:13
  Speaker 1: No more, every dollar of innovation, whether it may be
• 27:17
  Speaker 1: in a lab or a startup or a classified shop,
• 27:19
  Speaker 1: must exist to deliver one of three things game changing technology,
• 27:26
  Speaker 1: scalable products.
• 27:28
  Speaker 4: Or new ways of fighting. If it's not doing one.
• 27:31
  Speaker 1: Of those three things at speed, it will be realigned or.
• 27:35
  Speaker 4: It will go away. And that's why I'm entrusting Emil
• 27:39
  Speaker 4: as the.
• 27:39
  Speaker 1: CTO to ensure that this directive across the department is
• 27:43
  Speaker 1: rapidly carried out.
• 27:46
  Speaker 4: Amelia are going to be busy again.
• 27:50
  Speaker 1: What we're talking about today is a transformation and the
• 27:54
  Speaker 1: way we think about innovation. In Requirements Reform, led by
• 27:58
  Speaker 1: Mike Duffy, we killed an old, a sclerotic model and
• 28:03
  Speaker 1: rewire the departments that problems, money and experimentation live in
• 28:07
  Speaker 1: one system. In Acquisitions Reform, we killed the defense acquisition
• 28:12
  Speaker 1: system and created accountable portfolio acquisition executives, making speed to delivery.
• 28:19
  Speaker 1: Speed to delivery our organizing principle. We're going to do
• 28:23
  Speaker 1: the same for technological innovation. That's why today, at my direction,
• 28:28
  Speaker 1: we are ending the alphabet soup of councils that meet
• 28:32
  Speaker 1: and brief and write memos and schedule meetings, but never
• 28:37
  Speaker 1: decide and rarely, if ever accelerate outcomes. Effective Immediately, the
• 28:42
  Speaker 1: Defense Innovation Steering Group, the Defense Innovation Working Group, and
• 28:47
  Speaker 1: the CTO Council are.
• 28:49
  Speaker 4: Disestablished and abolished.
• 28:52
  Speaker 1: In their place, the CTO will convene a CTO Action
• 28:55
  Speaker 1: Group to assist him in making decisions, clearing bureaucratic blockers,
• 29:01
  Speaker 1: holding leaders accountable, and most importantly, quickly delivering new.
• 29:05
  Speaker 4: Technologies to our war fires.
• 29:09
  Speaker 1: Every organization in this ecosystem must earn its place by
• 29:15
  Speaker 1: delivering war fighting advantages faster than our adversaries can adapt.
• 29:19
  Speaker 1: No sacred cows, no exceptions.
• 29:25
  Speaker 4: To back up the CTO.
• 29:26
  Speaker 1: Today, in my direction, we are realigning two pillars of
• 29:29
  Speaker 1: the War Department's innovation ecosystem.
• 29:33
  Speaker 4: First, the Defense.
• 29:34
  Speaker 1: Innovation Unit ORDIU. Since its establishment ten years ago, DIIU
• 29:40
  Speaker 1: has lived through shifting reporting structures and uneven administrative support, doing.
• 29:46
  Speaker 4: Great things, but at times it's the.
• 29:48
  Speaker 1: Portfolio overlap with other parts of the department. Effective today,
• 29:52
  Speaker 1: DIIU is designated a Department of War Field Activity, providing
• 29:58
  Speaker 1: exceptional tech scouting RAP. I've been contracting in other common
• 30:01
  Speaker 1: services to the department, executed at commercial tempo.
• 30:07
  Speaker 4: The CTO will provide support to DIIU.
• 30:10
  Speaker 1: For administrative and resource matters and ensure that the unit's
• 30:13
  Speaker 1: efforts fit into the Department's innovation priorities. The Director of
• 30:20
  Speaker 1: DIIU will also continue to report directly to me as
• 30:23
  Speaker 1: a principal staff assistant and carry out its statutory duties.
• 30:28
  Speaker 1: And I'm appointing mister Owen West, executor of my Drone
• 30:33
  Speaker 1: Dominance Initiative, as the Director of DIIU starting in March
• 30:37
  Speaker 1: when the Fight twenty seven budget cycle firms up. As
• 30:41
  Speaker 1: a marine with lots of combat experience, Owen will bring
• 30:44
  Speaker 1: a warfighter's mentality to diiu's core mission of transitioning technology
• 30:49
  Speaker 1: to our troops.
• 30:52
  Speaker 4: Owen also has the private capital.
• 30:54
  Speaker 1: Experience needed to ensure DIIU remains working hand in glove
• 30:58
  Speaker 1: with the venture and investor community and continues to OnRamp
• 31:01
  Speaker 1: new entrants into the war Department. Owen led doge at
• 31:08
  Speaker 1: DOW the most effective Doze effort across the administration, saving
• 31:13
  Speaker 1: tens of billions of dollars for our department, and now
• 31:16
  Speaker 1: he will lead DIIU. Our world leading defense tech startups
• 31:20
  Speaker 1: have attracted billions of dollars in capital that are reshaping
• 31:24
  Speaker 1: warfare through the proliferation of high tech, low cost technologies.
• 31:28
  Speaker 1: Diiu's mission is to accelerate the adoption of this commercial
• 31:31
  Speaker 1: technology to help convert entrepreneurial products into tangible combat power. Second,
• 31:40
  Speaker 1: the Strategic Capabilities Officer SCO is also being designated a
• 31:45
  Speaker 1: Department of war Field Activity aligned under the CTO. Skull
• 31:50
  Speaker 1: will maintain focus on its core mission of identifying and
• 31:53
  Speaker 1: prototyping disruptive applications of.
• 31:56
  Speaker 4: New systems, the.
• 31:57
  Speaker 1: Unconventional uses of existing systems and near term technologies to
• 32:02
  Speaker 1: create strategic effects. SCOLL will continue to maintain its statutory
• 32:07
  Speaker 1: direct reporting relationship to the Deputy Secretary, but will be
• 32:11
  Speaker 1: operationally re aligned under the CTO to eliminate duplication and
• 32:16
  Speaker 1: ensure the relentless daily focus on delivering near and medium
• 32:22
  Speaker 1: term capabilities.
• 32:23
  Speaker 4: To our warfighters.
• 32:26
  Speaker 1: Relentless urgency and focus is our focus. Today's defense innovation
• 32:33
  Speaker 1: ecosystem is too fragmented, resulted in insufficient technology transition to
• 32:38
  Speaker 1: the warfighter. We address some of this in the transformation we.
• 32:41
  Speaker 4: Are making in the acquisition's.
• 32:43
  Speaker 1: Ecosystem, but it also needs to enter the innovation ecosystem
• 32:48
  Speaker 1: for too long, and I know a lot of you
• 32:50
  Speaker 1: have experienced this and others we met with in Los
• 32:52
  Speaker 1: Angeles recently. The experience of founders and entrepreneurs has been
• 32:57
  Speaker 1: running endless laps around the Pentagon looking.
• 33:01
  Speaker 4: For the right office, the right program, and the right
• 33:04
  Speaker 4: motivated sponsor.
• 33:06
  Speaker 1: And too often new entrants are ultimately stymied by the bureaucracy.
• 33:10
  Speaker 4: We hear at time.
• 33:11
  Speaker 1: And time again they don't know where to go, and
• 33:13
  Speaker 1: then when they go to that place, it's not the
• 33:15
  Speaker 1: right place to go.
• 33:16
  Speaker 4: Then they go somewhere else it didn't want them in
• 33:17
  Speaker 4: the first place, and the lap continues.
• 33:21
  Speaker 1: For example, SpaceX and Pallenteer had to sue the Department
• 33:25
  Speaker 1: of War just to get a shot at competing for
• 33:29
  Speaker 1: Department contracts. The bottom line is that new entrants need
• 33:33
  Speaker 1: both a shot on goal, but also faster yeses and
• 33:38
  Speaker 1: faster knows from the Department, rather than being strung along
• 33:42
  Speaker 1: with a never ending stream of rudderless maidens. At the
• 33:47
  Speaker 1: Secretary of War level, we will replace the existing maze
• 33:51
  Speaker 1: into two clear channels. The Mission Engineering and Integration Activity
• 33:58
  Speaker 1: MIA will tell enddustry what problems we're trying to solve,
• 34:03
  Speaker 1: and DIIU will help program offices adopt what industry has
• 34:06
  Speaker 1: already built. This will help get the faster yeses or
• 34:11
  Speaker 1: faster nos.
• 34:12
  Speaker 4: Clear guidance, clear guide rails, clear.
• 34:17
  Speaker 1: Demand signal, which is what industry and capital expects. Now,
• 34:22
  Speaker 1: this isn't just an Office of the Secretary reform.
• 34:25
  Speaker 4: The services need to transform.
• 34:27
  Speaker 1: Their innovation ecosystems as well. The Army, the Navy, the
• 34:30
  Speaker 1: Space Force, the Marine Corps, and the Air Force. That's
• 34:34
  Speaker 1: why today at my direction, our military services will take
• 34:37
  Speaker 1: the following actions within ninety days. The Secretaries of the
• 34:41
  Speaker 1: Military departments will brief the CTO on service innovation plans,
• 34:45
  Speaker 1: how they will consolidate, streamline, and refocus their labs, research expertise,
• 34:51
  Speaker 1: experimental units and rapid capability offices around three innovation outcomes.
• 34:58
  Speaker 1: Our sixty plus lab are a national asset, but it's
• 35:02
  Speaker 1: pastime they were organized to deliver and not just to discover.
• 35:08
  Speaker 1: And beginning with the fiscal year twenty twenty eight budget,
• 35:10
  Speaker 1: every portfolio acquisition executive will fund an Innovation Insertion Increment
• 35:17
  Speaker 1: Triple I dedicated money for the last mile integration test
• 35:21
  Speaker 1: and rapid insertion of validation solutions into fielded systems. Innovation
• 35:27
  Speaker 1: cannot be centralized, and it should not be.
• 35:32
  Speaker 4: In fact, I hope it's okay I name him.
• 35:36
  Speaker 1: But just this pack weekend I received an email a
• 35:38
  Speaker 1: proposal from an Army captain named Drennan Green who I've
• 35:41
  Speaker 1: known him for a while. He had a detailed plan
• 35:44
  Speaker 1: about how he and his unit wants to deploy AI innovation.
• 35:49
  Speaker 1: Candid should come from anywhere and anyone wherever.
• 35:54
  Speaker 4: Those best ideas reside.
• 35:55
  Speaker 1: We're going to bring that good captain in and hear
• 35:58
  Speaker 1: from them, how can we apply those tools in his
• 36:01
  Speaker 1: unit and other units bottom up, not just top down.
• 36:08
  Speaker 1: The military services and program officers own the last mile,
• 36:12
  Speaker 1: and to that end, I'm directing the services to establish
• 36:15
  Speaker 1: that Triple I Innovation insertion increment within the budgets of.
• 36:20
  Speaker 4: All program portfolios. This will ensure that.
• 36:23
  Speaker 1: They have funds set aside to quickly integrate innovations during
• 36:28
  Speaker 1: weapons system development and so be a tool to free
• 36:32
  Speaker 1: new innovative, cutting edge weapons and improvements from the constraints
• 36:36
  Speaker 1: of yearly budget cycles. Here you iterate in terms of
• 36:41
  Speaker 1: hours and days, maybe weeks.
• 36:43
  Speaker 4: In Washington we.
• 36:44
  Speaker 1: Talk in terms of months, years, and oftentimes multi years.
• 36:49
  Speaker 4: It's too slow. The CTO ecosystem will give them.
• 36:53
  Speaker 1: The supply services are contributors to this ecosystem.
• 36:57
  Speaker 4: Not bystanders.
• 36:58
  Speaker 1: They must deliver outcome, and they must deliver overmatch. And
• 37:03
  Speaker 1: speaking of budgets and budget cycles, you may have seen
• 37:06
  Speaker 1: President Trump's truth posts of a few days ago. He's
• 37:11
  Speaker 1: proposing a one point five trillion dollar budget for.
• 37:16
  Speaker 4: The War Department in fiscal year twenty seven. This is
• 37:19
  Speaker 4: by far the most ever in our history, a historic.
• 37:24
  Speaker 1: And generational investment in American security.
• 37:28
  Speaker 4: We will not squander this once in a lifetime opportunity.
• 37:32
  Speaker 1: To rebuild our military. Think of what this means as
• 37:36
  Speaker 1: our efforts to transform the department come fully online.
• 37:39
  Speaker 4: You add resources, and you streamline.
• 37:42
  Speaker 1: Process speed to deliver those capabilities to the warfighter.
• 37:45
  Speaker 4: And invitation to new entrants.
• 37:48
  Speaker 1: Into the defense industry, which we need so badly, and
• 37:51
  Speaker 1: an embrace.
• 37:52
  Speaker 4: Of AI and other cutting edge defense tech.
• 37:55
  Speaker 1: All of this will make our forces more agile, more lethal,
• 37:59
  Speaker 1: and more ready to deter and if necessary, win a
• 38:04
  Speaker 1: future fight. This is what President Trump demands, and this
• 38:09
  Speaker 1: is what we will deliver. This feeds into a next
• 38:14
  Speaker 1: area we need to fix. You see, reorganizing and a
• 38:17
  Speaker 1: new attitude are not enough to truly unlock innovation for
• 38:21
  Speaker 1: the warfighter.
• 38:22
  Speaker 4: Our department needs to.
• 38:23
  Speaker 1: Capitalize on a key advantage.
• 38:25
  Speaker 4: America has over her adversaries.
• 38:28
  Speaker 1: The broadest and deepest capital markets and the best entrepreneurial
• 38:32
  Speaker 1: talent in the world. You know this capital is the
• 38:36
  Speaker 1: lifeblood of American innovation, and therefore, to be successful, we
• 38:41
  Speaker 1: need to embrace the role in our department of private capital,
• 38:45
  Speaker 1: which we have not done for far too long. We
• 38:48
  Speaker 1: need to be a better partner for private capital so
• 38:50
  Speaker 1: we can help accelerate capital formation in key areas and
• 38:54
  Speaker 1: lower the risk for the Department. Private capital is already
• 38:58
  Speaker 1: helping solve a major problem that President Trump has directed
• 39:00
  Speaker 1: us to confront and solve across this administration, ending our
• 39:05
  Speaker 1: reliance on competitors for access to rare earth and critical minerals.
• 39:11
  Speaker 1: The Office of Strategic Capital or OSC, under the leadership
• 39:16
  Speaker 1: of David Lorich, is spearheading those efforts and delivering as
• 39:20
  Speaker 1: we speak. In the past five months alone, the OSC
• 39:24
  Speaker 1: team has deployed over four point five billion dollars in
• 39:27
  Speaker 1: capital commitments as part of closing six critical mineral deals,
• 39:32
  Speaker 1: all of which will help free the United States from
• 39:36
  Speaker 1: market manipulation. Crucially, OSC's strategy relies on crowding in private
• 39:42
  Speaker 1: sector investors from this VC community to our country's largest
• 39:47
  Speaker 1: financial institutions. The six OSC deals to date include nearly
• 39:51
  Speaker 1: five billion from our private capital partners. OSC has closed
• 39:56
  Speaker 1: most of those deals in less than thirty days, which
• 40:00
  Speaker 1: is Trump time for complex transactions that may seem maybe
• 40:06
  Speaker 1: slow for SpaceX in Washington, that's as fast as it gets.
• 40:10
  Speaker 4: I mean, that is warp speed in Washington.
• 40:13
  Speaker 1: All of our investments serve one purpose, deliver.
• 40:18
  Speaker 4: Faster for the warfighter.
• 40:22
  Speaker 1: Now, some will want to cynically posit is this just
• 40:25
  Speaker 1: another innovation reorganization, another set of strategies that brief well
• 40:30
  Speaker 1: but don't actualize. No, this is the third leg of
• 40:35
  Speaker 1: a single war plan. In fundamentally transforming our acquisition ecosystem,
• 40:41
  Speaker 1: we killed jasids that focused only on process and turned
• 40:45
  Speaker 1: the j ROCK into a body that ranks real world
• 40:48
  Speaker 1: joint operational problems, not paper requirements. We created the MEA
• 40:53
  Speaker 1: to run experimental experimentation.
• 40:55
  Speaker 4: Campaigns to solve these problems. We killed the.
• 40:59
  Speaker 1: Old defense equi position system and created the war fighting
• 41:02
  Speaker 1: acquisition system to focus on speed, risk and accountability. With
• 41:08
  Speaker 1: the AI strategy and innovation ecosystem transformation that we have
• 41:12
  Speaker 1: just outlined, we are welding that third piece into place.
• 41:18
  Speaker 4: The CTO, DIU, SCO.
• 41:20
  Speaker 1: DARPA, CDO, and OSC are no longer a loose federation.
• 41:25
  Speaker 1: They are the Office of the Secretary of War's Innovation
• 41:29
  Speaker 1: Operating System. DARPA delivers game change in technology, innovation and
• 41:34
  Speaker 1: strategic surprise. DIU delivers scalable products, SCO delivers new ways
• 41:40
  Speaker 1: of fighting, and CDO and osc provide the data, test,
• 41:43
  Speaker 1: and capital.
• 41:44
  Speaker 4: To move at wartime speed.
• 41:48
  Speaker 1: As of today, they are an ecosystem, an arsenal of
• 41:52
  Speaker 1: ideas and action for the arsenal of freedom, wired directly
• 41:58
  Speaker 1: into requirements, portfolio and production, game changing technology, scalable products,
• 42:05
  Speaker 1: new ways of fighting, all three moving at wartime speed.
• 42:11
  Speaker 1: Problems drive experimentation. Experimentation flows to prototypes. Prototypes flow to
• 42:17
  Speaker 1: our program executives. Program executive flow, these to production, production
• 42:22
  Speaker 1: flows to the warfighter, and the cycle never stops, always
• 42:27
  Speaker 1: iterating one system, one purpose.
• 42:31
  Speaker 4: Speed to the fight.
• 42:33
  Speaker 1: We are preparing to win the future because we know,
• 42:38
  Speaker 1: and you know, for the.
• 42:39
  Speaker 4: Free world, for the West, the stakes could not be higher.
• 42:46
  Speaker 1: Before this administration, our adversaries may have thought they've finally
• 42:51
  Speaker 1: broke American power.
• 42:54
  Speaker 4: They're wrong.
• 42:56
  Speaker 1: They do not have our entrepreneurs. They do not have
• 43:00
  Speaker 1: our capital markets. They do not have our combat proven
• 43:03
  Speaker 1: operational data from two decades of military and intelligence operations.
• 43:08
  Speaker 1: They do not have our hard won classified technologies. They
• 43:12
  Speaker 1: do not have the ingenuity and tenacity of American war
• 43:16
  Speaker 1: fighters who refuse to lose. They don't have a military
• 43:20
  Speaker 1: that can go thirty seven hours to downtown Tehran or
• 43:24
  Speaker 1: downtown Caracas without being seen in the process.
• 43:29
  Speaker 4: You see, but none of that.
• 43:30
  Speaker 1: Matters, however, if we suffocate those advantages under a stifling bureaucracy.
• 43:37
  Speaker 1: That's why we're unifying the innovation ecosystem, making this an
• 43:40
  Speaker 1: AI first department, and holding every lab, every program accountable,
• 43:47
  Speaker 1: all while pushing every officer to liver war fighting advantages
• 43:52
  Speaker 1: faster than others can adapt. We will not stop, We
• 43:58
  Speaker 1: will not back down. We will george the new arsenal
• 44:02
  Speaker 1: of freedom with our partners in industry, in the private sector.
• 44:07
  Speaker 1: We believe the future will be shaped by those who
• 44:10
  Speaker 1: lead in technology and innovation.
• 44:13
  Speaker 4: We don't believe.
• 44:13
  Speaker 1: We know, those who fervently believe in freedom and the
• 44:17
  Speaker 1: Western tradition like we do, must be those leaders. If
• 44:23
  Speaker 1: not us, if not America, if not the West, then who,
• 44:28
  Speaker 1: And if not now, it will be too late to
• 44:32
  Speaker 1: maintain that advantage. This is not reform for the sake
• 44:36
  Speaker 1: of reform.
• 44:37
  Speaker 4: It never has been.
• 44:39
  Speaker 1: This is about whether our warriors fight with yesterday's tools
• 44:43
  Speaker 1: or they fight overmatching our adversaries using tomorrow's technologies.
• 44:47
  Speaker 4: We know the threat, we know the opportunity, We know
• 44:51
  Speaker 4: what must be done. We share the urgency.
• 44:56
  Speaker 1: Now, we will do it, and we must do it
• 44:58
  Speaker 1: at wartime speed. Thank you, God bless you, God bless
• 45:04
  Speaker 1: this company that you've built, and may God bless our
• 45:07
  Speaker 1: great Republic.
• 45:08
  Speaker 4: Thank you very much, appreciate it. Thank you, thank you,
• 45:13
  Speaker 4: thank you, you guys, thank you, sir, thank you,