Naval Full Episode: The AI Industrial Revolution
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Jun 1, 2026 
Max Hodak, co-founder of neural interface company Science and bio/medical hardware entrepreneur; Blake Scholl, founder of supersonic aircraft maker Boom Supersonic and in-house jet engineer; Guillermo Rauch, CEO of Vercel building AI-enabled developer infrastructure. They discuss AI software factories, turning hardware workflows into code, vertical integration in biohardware, regulatory speedups with agents, and the rise of autonomous companies and agent-trained workflows.
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Vertical Integration Unlocks Single Block Performance
- Vertical integration becomes necessary when off-the-shelf components can't meet single-block performance goals.
- Max explains owning a MEMS foundry enabled custom packaging and assembly they couldn't buy, unlocking product-level improvements.
Use RAG Agents To Shrink Compliance Time
- Automate regulatory documentation with RAG agents to cut months of compliance work to minutes and lower iteration cost.
- Blake uses RAG to regenerate test plans instantly after spec changes, enabling faster design cycles.
AI Can Turn Regulation From Barrier Into Test Suite
- AI can reduce regulatory friction without removing safety by making compliance easier to understand and faster to produce.
- Max argues many regulations are helpful but humans struggle to parse them; AI can make them frictionless and actionable.