Equity Are AI companies just defense tech now?
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Dec 20, 2024 Max Zeff, a TechCrunch reporter focusing on venture capital and AI, joins the hosts to unveil the intriguing intersection of AI and defense tech. They discuss the launch of Humba Ventures' $40 million fund dedicated to deep tech and defense, and how enterprise AI company Cohere is carving a unique niche. Additionally, they ponder the wisdom of IPOs in an election year and the increasing caution founders might need with investors tied to foreign entities. The conversation reveals the complexities reshaping the investment landscape.
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SoftBank's Big Bet
- SoftBank CEO Masayoshi Son announced a $100 billion investment in the US, claiming it will create 100,000 jobs.
- This follows a similar $50 billion pledge during Trump's first term, the results of which remain unclear.
Rise of Boutique Defense Funds
- Smaller defense tech funds are emerging, focusing on hardware and deep tech, despite the capital-intensive nature of the industry.
- This raises questions about their ability to compete with larger firms like A16Z and Founders Fund.
Drivers of Defense Tech Investment
- Increased investment in defense tech is driven by geopolitical conflicts, the success of companies like Palantir and Anduril, and the perceived stability of government contracts during economic downturns.
- The libertarian and hawkish-on-China viewpoints converge in supporting this trend.