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Palmer Luckey on Elon Musk and John Carmack, selling Oculus for $2B and starting defense tech company Anduril
The Aarthi and Sriram Show
How Do Defense Technology Companies Work?
Most defense technology companies work on a cost plus basis. They get paid for time and materials and then a fixed percentage of profit on top. It was a model that made sense during World War II, when we needed to basically hijack the entire US industrial machine. But it doesn't make any sense in a modern peacetime scenario. And I think what the government has done is created a world where tech workers don't understand how the defense industry works.
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