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Lockheed Martin

Acquired

The Irony of the Government's Buying Modern Things

2min Snip

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The modern Silicon Valley and the modern defense industry are in many ways kind of incompatible from a business model perspective. Palantir, for example, how do you let the government put out a contract to bid on that structure to a certain way? That doesn't fit in these gigantic cost plus contracts. No matter how large you scale, you will never have big fat gross margins that outrun your fixed costs.

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