Venture capitalists have poured more than $100 billion into U.S. defense-technology startups since 2021, banking on government interest in upgrading the military. Persuading the Pentagon to buy from Silicon Valley has proven difficult.
Washington and Silicon Valley have for years tried to forge a more lucrative partnership, and the rise of China and conflicts in Ukraine and Israel showcasing modern technology have made military leaders more anxious to modernize their arsenals. At the same time, many entrepreneurs in Silicon Valley, who historically have shunned military work, are increasingly enthusiastic about becoming a part of the country’s war infrastructure.
Reflecting the new rhetoric of mutual benefit, there have been more venture-capital luncheons and salons in Washington, D.C., and Silicon Valley tours by defense officials. There is one problem: Defense Department dollars haven’t kept up.
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