Managing Editor’s Note: The tariff-fueled market chaos from last month is only the start of the current volatility…
As longtime readers know, Jeff is bullish in the long term… but as he’s also said, we should expect plenty of short-term volatility along the way.
That’s why he’s developed a strategy that’s perfect for these market shocks… a way to profit from these wild swings. He’s getting into the details next Wednesday, May 7, at 1 p.m. ET. You can go here to automatically add your name to the list.
There won’t be enough time.
Sending data – somewhere in the cloud – to have it analyzed, and send instructions back…
It simply takes too much time…
Which is just one of the reasons why the future of warfare will be radically different from what we think of today.
And it’s probably no surprise that it will be built on advanced artificial intelligence, capable of reasoning and optimizing for very dynamic, kinetic warfare – where decisions need to be made in split seconds.
Defense systems will have powerful computing systems and semiconductors, capable of running AI models on board and inferring the correct course of action nearly instantaneously.
Whether manned or not, these will be powerful, intelligent, and often fully autonomous defense systems with clear mission objectives.
About a month ago, the U.S. government announced the successor to the Lockheed Martin (LMT) F-22.
The F-47, shown below, came out on top as the winner of the Next Generation Air Dominance (NGAD) program.
Source: Aviation Week
It’s a very interesting stealth design that will quickly become the most advanced manned fighter jet in history.
Source: Aviation Week
And while the F-47 is designed for a human pilot, it’s not meant to be flown alone.
This next generation of fighter jet, designed by Boeing (BA), is engineered to be flown in concert with artificial intelligence-piloted Collaborative Combat Aircraft (CCA) as wingmen. And not just one CCA on each wing. The F-47’s programming will allow for real-time coordination and synchronization with a squadron of AI-powered CCAs.
The F-47 was a huge win for Boeing after years of missteps in commercial aviation and space. It was also a painful loss for Lockheed Martin (LMT), which has dominated fighter jets for the last three decades.
The F-47 and other jet fighters will be paired with CCAs like Kratos Defense and Security’s (KTOS) XQ-58A Valkyrie.
XQ-58A Valkyrie | Source: Kratos
CCAs like the XQ-58A Valkyrie are often referred to as drones, but I don’t consider that an accurate description. They are really stealthy, unmanned intelligent combat aircraft. Perhaps we should call them SUICA – a new acronym?
The Valkyrie is a very high-performance aircraft, capable of flying solo in large swarms or in support of a fighter like the F-47. It is capable of incredible maneuverability at high subsonic speeds.
But what if we need to go faster?
That’s where hypersonic technology comes into play.
Whether it be hypersonic missiles, or multi-mission hypersonic aircraft like the Darkhorse from Hermeus – shown below – hypersonic speed is a major advantage, for both defense and for intelligence missions.
Rendering of a Darkhorse Hypersonic Aircraft | Source: Hermeus
And as we’ve seen in the Western conflict with Russia in Ukraine, small drone warfare has quickly been adopted as a cheap and effective technology that is easily used for both surveillance and for offensive attacks when coupled with explosives.
I remember seeing the below video several months ago, which was a demonstration in China of coordinated military drone technology…
China’s Drone Swarm Technology
Just imagine seeing something like the above in the sky, hurtling towards you, knowing that each drone is carrying a payload of explosives. Frightening.
But there is something to do about it. There is a defense against such kinds of drone attacks. It’s a kind of electronic warfare that will be critical as a defensive technology.
Below is an actual demonstration of a new product from private defense technology powerhouse, Anduril.
Its Pulsar-L is an incredible piece of technology designed to jam and disable a swarm of drones.
Pulsar-L Electromagnetic Warfare | Source: Anduril
Shown above is a video of the portable Pulsar-L disabling a swarm of 75 drones, causing them to fall from the sky.
Many criticized that the above video was fake – computer-generated. Anduril is often treated poorly by the media because of the founder’s politics – beliefs in a strong national defense, strong borders, and freedom of speech.
But the video was real, specifically that of the Pulsar-L jamming the drones, causing them to crash to the ground. The only section that was animated with graphics was to help visualize radio waves or electromagnetic waves.
Pulsar-L | Source: Anduril
It’s worth noting that this portable defense system is an electromagnetic device, but not an electromagnetic pulse (EMP) weapon, which means that it doesn’t take down all electronics within its radius, only the drones that it is targeting.
And please understand, I am not one who delights in discussing warfare as a topic of interest; I’d much prefer a peaceful world. But to me, the question is simple…
Would we feel safer knowing that technology like the Pulsar-L is available to protect against drone swarm attacks, or not? I know what my answer would be.
As we progressed through these next-generation warfare technologies, you might have noticed something…
Fighter jets like the F-47 will be manufactured in the 100s. CCAs will be manufactured in the 1,000s. Hypersonic missiles and hypersonic drones will be manufactured in the tens of thousands. And drones will be manufactured in the millions.
China alone has more than 19,000 companies developing drones. Do we think that’s just a coincidence? Do we think that an industry like that can proliferate without the explicit support of the Chinese Communist Party (CCP)?
The nature of warfare is changing quickly.
It will be powered by artificial intelligence and capable of attacks never seen before.
And that’s why the race to artificial general intelligence (AGI) is so critically important.
A national security strategy isn’t built on “hope” – hoping that your adversaries don’t use technology in a malicious way. It’s built on beating adversaries in technological advancement and using that technology to build defensive systems that can protect against malicious attacks.
And that’s precisely why we’re going to see record levels of investment in both public and private defense tech companies in the next few years.
It’s a matter of national security.
Jeff
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
The Bleeding Edge is the only free newsletter that delivers daily insights and information from the high-tech world as well as topics and trends relevant to investments.
