WEBVTT - Anduril CEO Talks Ohio Plant, an IPO, Working With Trump 0:00:02.759 --> 0:00:07.240 Bloomberg Audio Studios, podcasts, radio news. 0:00:08.000 --> 0:00:11.440 You must get to defense tech startup Anderill being selected 0:00:11.960 --> 0:00:15.160 and having selected Ohio as the location of a new 0:00:15.240 --> 0:00:18.920 manufacturing facility that will produce tens of thousands of autonomous 0:00:18.920 --> 0:00:21.840 systems and weapons annually. All this part of a plan 0:00:21.920 --> 0:00:24.599 to become a key provider of drones and other technology 0:00:24.640 --> 0:00:27.400 for the US military. Let's bringing our own ed Ludlow, 0:00:27.520 --> 0:00:30.200 who's in rather cold Ohio right now, ed. 0:00:31.520 --> 0:00:35.360 Thank you Caroline. At full capacity. Arsenal one will be 0:00:35.400 --> 0:00:38.400 five million square feet, it will create four thousand jobs 0:00:38.440 --> 0:00:41.320 over ten years, and Andreil's putting a billion dollars of 0:00:41.360 --> 0:00:45.199 its own cash into the project. Who better to discuss 0:00:45.240 --> 0:00:47.519 that with than with one of the co founders of Anderil, 0:00:47.560 --> 0:00:49.960 Palmer Lucky, also chief technology officer. 0:00:50.200 --> 0:00:51.199 Thank you so much for having me. 0:00:51.479 --> 0:00:55.720 It's incredibly aggressive. The timeline to manufacture the first phase 0:00:55.760 --> 0:00:59.640 of this site and then start production mid twenty twenty six. 0:01:00.280 --> 0:01:02.960 How big a fact is that timeline in the highest 0:01:02.960 --> 0:01:04.039 selection Partmer. 0:01:04.440 --> 0:01:06.440 It has to be this fast because we don't have 0:01:06.480 --> 0:01:09.039 time for business as usual. The types of threats threats 0:01:09.080 --> 0:01:11.319 of the United States is facing that our allies around 0:01:11.319 --> 0:01:13.800 the world are facing the fact that we are predicted 0:01:13.840 --> 0:01:16.199 to run out of munitions within the first eight days 0:01:16.200 --> 0:01:18.560 of a potential conflict with China mean that we need 0:01:18.600 --> 0:01:20.679 to hyper scale our manufacturing of these. 0:01:21.240 --> 0:01:24.760 So was this the only state that could guarantee that timeline? 0:01:24.880 --> 0:01:27.120 I think that they were the state that gave us 0:01:27.120 --> 0:01:28.800 the best shot of hitting that timeline. 0:01:28.840 --> 0:01:30.600 Look, we've really engaged well with. 0:01:30.600 --> 0:01:33.399 Jobs Ohio with a lot of the politicians here, not 0:01:33.520 --> 0:01:35.280 just at the state level, with the local level. You know, 0:01:35.400 --> 0:01:37.360 like you said, we're hiring four thousand people here in 0:01:37.400 --> 0:01:40.120 direct jobs, a lot more jobs than that in a 0:01:40.319 --> 0:01:43.320 direct or sorry, an indirect capacity. It's the largest single 0:01:43.400 --> 0:01:45.800 job creation event in Ohio history. 0:01:46.040 --> 0:01:48.880 It was a state that told us we have the workforce. 0:01:48.920 --> 0:01:50.800 We have a million people who are capable of working 0:01:50.800 --> 0:01:52.920 in the facility within a forty five minute drive. We're 0:01:52.960 --> 0:01:55.840 willing to work with you on higher education to help train. 0:01:55.720 --> 0:01:57.800 People so that they can come in and they can 0:01:57.840 --> 0:01:58.320 work with you. 0:01:58.880 --> 0:02:01.200 Our customer in the form of the United air The 0:02:01.280 --> 0:02:03.640 United States Air Force obviously is a huge presence here 0:02:03.680 --> 0:02:05.480 in the form of Right Patterson Air Force Base. 0:02:05.720 --> 0:02:07.320 So really all the scars. 0:02:06.960 --> 0:02:09.239 Aligned to make Ohio a great place for us to 0:02:09.280 --> 0:02:11.320 do it and to do it fast, and speaking candidly 0:02:11.360 --> 0:02:14.240 as someone who is from California, there's some states that 0:02:14.280 --> 0:02:18.080 are really good at pushing you out and slowing you down, 0:02:18.240 --> 0:02:20.359 and there's others that are great at pulling you in 0:02:20.560 --> 0:02:21.360 and speeding you up. 0:02:21.360 --> 0:02:22.360 And that's what Ohio was. 0:02:22.560 --> 0:02:27.040 Let's go there was California at any point a likely candidate, 0:02:27.080 --> 0:02:28.440 and if not, why. 0:02:28.639 --> 0:02:31.000 There was a zero percent chance at any point of 0:02:31.120 --> 0:02:32.920 Arsenal one being located in California. 0:02:32.960 --> 0:02:35.040 There's a lot of reasons for that, but I mean, 0:02:35.080 --> 0:02:35.959 you can go through them. 0:02:36.000 --> 0:02:38.600 It's the high cost of living, It's the very high 0:02:38.680 --> 0:02:41.920 energy cost, It's in some cases, the unreliability of the 0:02:42.040 --> 0:02:42.880 energy systems. 0:02:43.440 --> 0:02:46.000 It's the unreliability of the. 0:02:45.960 --> 0:02:49.760 State politics and the worry on the regulatory side, and 0:02:50.280 --> 0:02:53.640 just you know, the reality is California has enough money 0:02:53.680 --> 0:02:55.560 and enough really successful companies that they don't really have 0:02:55.600 --> 0:02:57.560 to worry about a company like Mind, a company like Androl. 0:02:58.520 --> 0:03:00.760 The jobs that we are bringing here to Ohio, they 0:03:00.760 --> 0:03:03.359 are material and they are something that the state really 0:03:03.440 --> 0:03:05.280 really cares about. And it doesn't hurt that one of 0:03:05.280 --> 0:03:08.720 our co founders, Tray Stevens, is Nato Bourne, Ohio, and 0:03:09.000 --> 0:03:11.360 I won't say that's why that we made the final decision, 0:03:11.440 --> 0:03:12.959 but I definitely made sure that Ohio was at the 0:03:12.960 --> 0:03:14.040 top of the list from the beginning. 0:03:14.080 --> 0:03:15.960 What you did say as a company is that it 0:03:16.000 --> 0:03:19.240 had nothing to do with Vice President elect JD Vans. No, 0:03:19.480 --> 0:03:20.280 that was not a fact. 0:03:20.520 --> 0:03:22.440 This decision has been going on a lot longer than that. 0:03:22.480 --> 0:03:24.520 We're finally able to talk about it today. But I mean, 0:03:24.560 --> 0:03:27.280 you saw the renders, you saw the site, the site plans, 0:03:27.680 --> 0:03:29.959 things like that take a long time to put together. 0:03:30.080 --> 0:03:32.400 We raised our one point five billion dollar round of 0:03:32.400 --> 0:03:35.520 financing last year specifically to build this facility. 0:03:35.640 --> 0:03:38.080 One of the questions from our audience on social media 0:03:38.200 --> 0:03:41.400 was about the jobs. Yep, four thousand over ten years. 0:03:41.840 --> 0:03:44.880 There must be a mix of those originating from Ohio, 0:03:44.960 --> 0:03:47.880 but you must also be trying to attract talent out 0:03:47.920 --> 0:03:49.920 of state to move here. And I know you'll be 0:03:50.000 --> 0:03:51.280 spending a lot of time here as well. 0:03:51.360 --> 0:03:53.000 Well. I'm definitely going to be buying the house out here. 0:03:53.040 --> 0:03:55.640 I'm blessed with financial success from my first company, Oculus 0:03:55.720 --> 0:03:57.480 VR that allows me to get a place so I 0:03:57.520 --> 0:03:59.240 don't have to get a hotel room when I'm spending 0:03:59.280 --> 0:04:04.200 time out here. The thing about you, like, Yes, we're 0:04:04.200 --> 0:04:05.720 gonna hire a lot of nato oh islands. I think 0:04:05.720 --> 0:04:07.200 we're also going to have a lot of people who 0:04:07.240 --> 0:04:09.120 are imports, who are coming in and adding to the 0:04:09.160 --> 0:04:11.560 economy here. You look at our headquarters in California, we're 0:04:11.560 --> 0:04:14.280 about eighty percent imports. About eighty percent of our employees 0:04:14.480 --> 0:04:17.919 are coming from outside of the state into California. And 0:04:17.960 --> 0:04:20.000 I think we're gonna do. I think we're gonna we're 0:04:20.000 --> 0:04:22.039 gonna bring a lot of people here as well. Maybe 0:04:22.120 --> 0:04:24.080 not eighty percent, but there's gonna be a lot of 0:04:24.080 --> 0:04:26.440 people who are moving to the area economically building it up. 0:04:26.520 --> 0:04:29.320 The supply chain you hire is actually very interesting. So 0:04:29.400 --> 0:04:32.320 you will have use of two runways where we are 0:04:32.360 --> 0:04:33.480 now Rickonbucket Airport. 0:04:33.520 --> 0:04:33.840 That's right. 0:04:33.880 --> 0:04:37.839 But my understanding is that take, for example, Fury behind us. 0:04:38.480 --> 0:04:41.120 In some cases you'll be able literally to take off 0:04:41.120 --> 0:04:42.880 from the runway which is just a few feet from 0:04:42.880 --> 0:04:48.240 where we're sitting, and deliver that technology direct to customer, explain. 0:04:48.360 --> 0:04:50.280 Direct to customer, or directly to the action. 0:04:50.400 --> 0:04:53.840 I mean, so this is Fury, this is our CCA 0:04:53.960 --> 0:04:58.160 collaborative combat aircraft. It's basically an autonomous loyal wingman fighter 0:04:58.240 --> 0:05:01.840 jet that can fight alongside F thirty and other fighters 0:05:01.880 --> 0:05:02.800 of the United States and. 0:05:02.760 --> 0:05:03.480 Our allies use. 0:05:03.680 --> 0:05:05.320 But you're right, the goal here is that we can 0:05:05.400 --> 0:05:09.360 manufacture these aircraft at scale, thousands of these spider jets here, 0:05:09.480 --> 0:05:11.560 and then we can either fly them directly to the 0:05:11.560 --> 0:05:13.880 customer or in some cases directly to the theater. 0:05:13.960 --> 0:05:16.320 Of course, probably with refueling stops along the way. 0:05:16.760 --> 0:05:18.960 But that's that's what we did during World War Two, 0:05:19.320 --> 0:05:20.960 and that's what we plan on doing it again. 0:05:21.480 --> 0:05:25.280 Ohio is quite busy. Intel has a fab going up 0:05:25.320 --> 0:05:28.760 that's right quite nearby. Do you see that as a 0:05:28.800 --> 0:05:31.520 sort of competition for talent or do you see it 0:05:31.640 --> 0:05:33.599 as value add to being here. 0:05:33.680 --> 0:05:34.080 It's both. 0:05:34.120 --> 0:05:35.800 There's value added, and of course I'm probably going to 0:05:35.880 --> 0:05:37.720 hire some of their people and they're going to hire 0:05:37.800 --> 0:05:38.400 some of our people. 0:05:38.400 --> 0:05:39.719 That's just the way that these things always go. 0:05:40.040 --> 0:05:41.680 What you want to try to do is create make 0:05:41.720 --> 0:05:44.920 the area more attractive in general, right right, Like if 0:05:44.920 --> 0:05:47.200 andro was here and we were the only company that 0:05:47.360 --> 0:05:50.160 was in the area, it'd be harder to get really 0:05:50.440 --> 0:05:53.240 really world class people to want to stay in the 0:05:53.360 --> 0:05:55.800 area or move to the area because we're the only 0:05:55.800 --> 0:05:58.360 game in town. When they know that it's a healthy 0:05:59.080 --> 0:06:01.960 ecosystem of career choices, it's a lot easier to get 0:06:01.960 --> 0:06:04.240 people to come even if you if you do, manage. 0:06:04.000 --> 0:06:07.600 To keep them around Palmer. When I spoke to Ohio 0:06:07.720 --> 0:06:10.880 Governor Mike Dewayan earlier, I asked him what was the 0:06:10.920 --> 0:06:14.279 sort of single biggest factor that gave him conviction about 0:06:14.320 --> 0:06:17.280 you meeting your timelines, not just for manufacturing, but your 0:06:17.279 --> 0:06:21.480 commitments to this state. In my career, with respect, every 0:06:21.520 --> 0:06:24.560 sort of industrial technology company I've covered, no matter how 0:06:24.560 --> 0:06:29.479 many billions of dollars they've raised from private sources, venture 0:06:29.600 --> 0:06:33.680 private growth equity, have never met their manufacturing timelines. There's 0:06:33.680 --> 0:06:38.320 always slippage. Granted the pandemic's been a factory. He said 0:06:38.360 --> 0:06:41.520 that that factor was you and your colleagues. Just from 0:06:41.520 --> 0:06:44.479 meeting you, you are the point of difference. What can 0:06:44.520 --> 0:06:48.320 you tell me about how the team guarantees that twenty 0:06:48.360 --> 0:06:49.560 twenty six timeline. 0:06:49.640 --> 0:06:52.120 I think that, like I said earlier, we don't have 0:06:52.120 --> 0:06:55.279 time for business as usual right now. People are predicting 0:06:55.560 --> 0:06:57.440 that there is going to be a window of opportunity 0:06:57.680 --> 0:07:00.680 for g in China that opens in twenty twenty seven. 0:07:01.560 --> 0:07:04.200 That means that you necessarily need to be ready for 0:07:04.240 --> 0:07:07.279 a potential great power conflict with China in twenty twenty 0:07:07.279 --> 0:07:09.640 seven and for at least a few years after that. 0:07:10.080 --> 0:07:12.360 So we have to write there's there's no other option. 0:07:12.440 --> 0:07:14.640 The whole point here, the reason we raised that one 0:07:14.680 --> 0:07:16.880 point five billion dollars round, the reason that we've been 0:07:16.920 --> 0:07:19.440 accelerating this process, the reason that we're investing in building 0:07:19.440 --> 0:07:22.280 this factory ahead of the customer actually paying us to 0:07:22.320 --> 0:07:24.560 do it, is because we believe in that timeline. 0:07:24.760 --> 0:07:26.760 Because we have to believe in it. It is it 0:07:26.800 --> 0:07:28.360 is critical that we hit it, and I think we will. 0:07:28.560 --> 0:07:31.160 Are you guessing some financial incentives from the States. 0:07:30.920 --> 0:07:32.320 Of the High Absolutely they were. 0:07:32.320 --> 0:07:35.120 They gave us a great incentive package, and that was 0:07:35.200 --> 0:07:36.560 definitely that was definitely. 0:07:36.240 --> 0:07:38.160 Part of our decision was the value and what does 0:07:38.200 --> 0:07:39.680 it look like? What is its composition? 0:07:40.600 --> 0:07:43.040 I am going to let somebody else tackle it, because 0:07:43.120 --> 0:07:45.640 I'm actual, I can tell you it's in the hundreds 0:07:45.640 --> 0:07:48.120 of millions versus the billions that we're going to be putting. 0:07:47.840 --> 0:07:49.080 Out two point one billion. 0:07:49.160 --> 0:07:51.400 Yeah, I think they did a better job negotiating than 0:07:51.640 --> 0:07:54.280 than me. Maybe I don't know, but I'm really glad 0:07:54.320 --> 0:07:57.440 that Intel is here. They're really they're a really great partner. Obviously, 0:07:57.440 --> 0:08:00.000 they're they're they're making they're making a lot of US 0:08:00.080 --> 0:08:03.440 conductors that are competitive with competitive with the things that 0:08:03.480 --> 0:08:05.480 are being done in other countries, and it's critical for 0:08:05.600 --> 0:08:07.960 our products that we have advance and be conductors that 0:08:07.960 --> 0:08:08.960 are made in the United States. 0:08:08.960 --> 0:08:10.600 So I'm really glad that they're down the road from US. 0:08:10.680 --> 0:08:12.920 Palmer, it's important to have some extended time with you 0:08:13.080 --> 0:08:15.240 to talk about Arsenal one. I think one of the 0:08:15.240 --> 0:08:18.160 most common questions I get from the audience, even if 0:08:18.200 --> 0:08:21.480 they're familiar with ANDERIL, is what does ANDERIL actually do. 0:08:21.840 --> 0:08:25.000 They might know you as a weapons manufacturer or if 0:08:25.040 --> 0:08:28.160 they are a bit more research at autonomous defense systems, 0:08:28.520 --> 0:08:31.000 but could we just simply talk about what Arsenal one 0:08:31.040 --> 0:08:34.320 is going to manufacture and where that technology will be 0:08:34.320 --> 0:08:35.160 sold and deployed. 0:08:35.200 --> 0:08:38.120 The way we look at ourselves is as a defense 0:08:38.720 --> 0:08:41.920 product company, not a contractor, but a product company, meaning 0:08:42.000 --> 0:08:43.880 we take a product company approach. We decide what to 0:08:43.880 --> 0:08:45.520 build it, how to build it, when it's done, and 0:08:45.559 --> 0:08:47.720 we invest our own money into making that happen. Then 0:08:47.760 --> 0:08:49.760 we sell products to the customer. Now we work hand 0:08:49.800 --> 0:08:51.920 in hand with customers through that process. It's not like 0:08:51.960 --> 0:08:54.120 I can go off and build a batmobile and try 0:08:54.120 --> 0:08:55.559 to sell it to them because I think it's cool, 0:08:56.720 --> 0:08:58.960 but I think that I'm sorry. 0:08:59.000 --> 0:09:00.760 What was the second part of the question I heard question? 0:09:00.880 --> 0:09:02.960 Is what specifically, what's the similarity buildings? 0:09:03.120 --> 0:09:05.000 So the things that we're building, they're driven by what 0:09:05.040 --> 0:09:07.240 our customers need, but we are adussing a lot of 0:09:07.240 --> 0:09:09.000 our own money in them. So obviously we're building Fury, 0:09:09.080 --> 0:09:10.480 you know, our autonomous spider jets. 0:09:10.520 --> 0:09:11.240 Behind you, you. 0:09:11.120 --> 0:09:13.960 See all three of the different Barracuda cruise missile family, 0:09:14.040 --> 0:09:16.640 so the Varracuda one hundred Baracoud to two fifty Baracoud 0:09:16.679 --> 0:09:19.640 of five hundred autonomous swarming cruise missiles. We're also going 0:09:19.640 --> 0:09:21.840 to be building a lot of our is R drones. 0:09:21.920 --> 0:09:24.440 We're going to be building a lot of our mobile 0:09:24.440 --> 0:09:26.520 command and control systems here, and we're going to be 0:09:26.559 --> 0:09:28.160 building some combat heads up displays here. 0:09:28.160 --> 0:09:29.560 I think you're going to be hearing some news about 0:09:29.600 --> 0:09:29.960 that soon. 0:09:30.480 --> 0:09:33.400 There is a timeline. It doesn't sort of all happen 0:09:33.440 --> 0:09:35.640 at once. So initially, the first phase of the facility 0:09:35.640 --> 0:09:37.439 I think is about five acres, that's right, it goes 0:09:37.520 --> 0:09:40.560 up to five hundred acres. What does that process look like? 0:09:40.679 --> 0:09:44.760 Building out what you call hyper scale defense or weapons manufacturing. 0:09:45.000 --> 0:09:48.840 The process is building this place up in a way 0:09:48.880 --> 0:09:51.840 that only a madman would are Our COO, Matt Grimm, 0:09:51.840 --> 0:09:53.800 has been kind of the hero of the day and 0:09:53.960 --> 0:09:56.560 figuring out how we're going to go from you know, 0:09:56.600 --> 0:10:00.040 a very very minimal footprint today to ninety five a 0:10:00.160 --> 0:10:02.480 ball fields in a very short period of time. 0:10:02.920 --> 0:10:05.320 And it wouldn't be possible if we did never. 0:10:05.240 --> 0:10:08.560 Really close cooperation with the local authorities on the permitting side, 0:10:08.880 --> 0:10:11.760 on the power and utility side, on the one on 0:10:11.840 --> 0:10:16.199 the logistics for example, rail logistics, air logistics, road logistics, 0:10:16.280 --> 0:10:18.040 be able to move things in and out of the 0:10:18.040 --> 0:10:20.880 facility very very quickly. If everybody wasn't on board and 0:10:20.920 --> 0:10:24.239 moving lockstep together, this timeline would be absolutely unreasonable. 0:10:24.240 --> 0:10:25.320 And you keep hitting it. 0:10:25.320 --> 0:10:27.720 But I will note we have competitors who are telling 0:10:27.760 --> 0:10:29.920 us that we are not going to hit these timelines 0:10:29.920 --> 0:10:34.120 and that we are madmen, and so look, you know, 0:10:34.240 --> 0:10:36.080 anyone could be wrong. But I would love to do 0:10:36.120 --> 0:10:39.440 a follow up piece in maybe twenty four months and 0:10:39.520 --> 0:10:40.960 see if we're bad men or not, or if we 0:10:40.960 --> 0:10:42.240 pull those past. 0:10:42.160 --> 0:10:44.120 Four months from now, you and I will sit down again, 0:10:44.480 --> 0:10:46.840 but in an operational facility, is what we were saying. 0:10:46.840 --> 0:10:48.679 We'll sit down an arsenal one and we'll have fighter 0:10:48.800 --> 0:10:50.320 just coming off the line, as my prediction. 0:10:50.480 --> 0:10:53.000 The other big question I get for you direct from 0:10:53.040 --> 0:10:56.640 the audience is how they, as retail investors, can participate 0:10:56.720 --> 0:10:57.560 in this well. 0:10:58.000 --> 0:11:00.120 As you know, the United States government has taken in 0:11:00.160 --> 0:11:03.000 a very un American position in saying that you need 0:11:03.040 --> 0:11:05.960 to be generally an accredited investor to invest in companies 0:11:06.000 --> 0:11:06.440 like ANDREL. 0:11:06.559 --> 0:11:10.040 I think that's totally bogus and it's anti American, especially. 0:11:09.720 --> 0:11:11.840 Because the only thing that being an accredited investor means 0:11:11.880 --> 0:11:13.280 is you have money already. 0:11:13.400 --> 0:11:15.320 I know a lot of people who have money who you. 0:11:15.280 --> 0:11:17.880 Would never say they're accredited to do anything, and vice versa. 0:11:18.400 --> 0:11:20.079 That said, we are on a path to being a 0:11:20.120 --> 0:11:22.360 publicly traded company. I think that's an important thing. I 0:11:22.440 --> 0:11:24.760 want us to be accessible to the American public. I 0:11:24.760 --> 0:11:26.160 think that it's good for people to be able to 0:11:26.160 --> 0:11:28.600 invest in American defense companies, not for them to just 0:11:28.640 --> 0:11:32.199 remain in private forever. I'll take an ideological stand there. 0:11:32.200 --> 0:11:33.920 I think that that is a good thing for the country. 0:11:34.000 --> 0:11:36.880 It's good for us, it's good for our customer. As 0:11:36.880 --> 0:11:39.040 for when that happens, it's hard to say we don't 0:11:39.120 --> 0:11:41.320 need the IPO because we were. 0:11:41.160 --> 0:11:41.800 Doing really well. 0:11:41.800 --> 0:11:43.600 We hate We're winning a lot of contracts, We're making 0:11:43.640 --> 0:11:44.480 quite a bit of money. 0:11:44.840 --> 0:11:46.760 We don't doubled last year to about a billion. 0:11:47.280 --> 0:11:48.640 That's the rumor. That's the rumor. 0:11:49.960 --> 0:11:53.240 Things are doing really, really well, So we don't have 0:11:53.360 --> 0:11:56.000 to IPO to raise money to keep the company going. 0:11:56.880 --> 0:11:58.080 I want to do it at a time when the 0:11:58.120 --> 0:12:01.760 markets are favorable, when people understand what we're doing, and 0:12:01.800 --> 0:12:03.480 I also want to prove out some of these big bets. 0:12:03.520 --> 0:12:04.479 I don't really. 0:12:04.200 --> 0:12:07.120 Want IPO when people are saying that we're mad men 0:12:07.360 --> 0:12:09.280 and trying to do the impossible. I want to do 0:12:09.320 --> 0:12:13.319 the impossible and then say, look, we did it. All 0:12:13.320 --> 0:12:14.199 you have to do is bet we can. 0:12:14.160 --> 0:12:14.520 Do it again. 0:12:14.640 --> 0:12:17.160 You will be doing business with somebody new in the 0:12:17.200 --> 0:12:21.960 Department of Defense. President elect Trump's pick is mister Henk. 0:12:22.040 --> 0:12:24.600 Say that's right, you know he was not one of 0:12:24.600 --> 0:12:27.480 the names that you had in your head when we 0:12:27.559 --> 0:12:28.840 last spoke a few months. That's right. 0:12:28.840 --> 0:12:30.160 You'd asked me about it, and I said that I 0:12:30.240 --> 0:12:30.960 knew the names. 0:12:31.320 --> 0:12:32.599 I heard a lot of the names coming around, and 0:12:32.679 --> 0:12:34.040 I was a big fan of all of them. You're right, 0:12:34.080 --> 0:12:35.319 he wasn't one of the names that I had heard 0:12:35.400 --> 0:12:35.959 rattling around. 0:12:36.000 --> 0:12:37.800 May I just make a point that, you know, look 0:12:37.840 --> 0:12:42.040 at his CV. He doesn't have experience running an organization 0:12:42.120 --> 0:12:46.040 of that size. You want change and improvement in how 0:12:46.040 --> 0:12:49.000 America does business with the private sector in defense. So 0:12:49.080 --> 0:12:51.880 what we were approach with potentially mister HEGSETHB And what 0:12:51.960 --> 0:12:52.720 do you make of him? 0:12:53.080 --> 0:12:54.960 I think that there's a lot of credentialism that is 0:12:54.960 --> 0:12:57.760 being levied against him that is totally unfair, and I 0:12:57.800 --> 0:12:59.840 personally empathize with him a lot. 0:13:00.160 --> 0:13:01.840 I started Oculus. 0:13:01.480 --> 0:13:03.400 VR when I was nineteen years old, living in a 0:13:03.440 --> 0:13:06.440 camper trailer and putting myself through school. And I didn't 0:13:06.440 --> 0:13:08.080 have the experience to be running that company. And I 0:13:08.080 --> 0:13:10.800 grew to thousands of people and the international business shipping 0:13:10.840 --> 0:13:13.200 millions of virtual reality headsets all over the world. And 0:13:13.240 --> 0:13:15.000 I didn't have the experience to be running arol either. 0:13:15.040 --> 0:13:17.000 I'd absolutely no business running this company. People could have 0:13:17.000 --> 0:13:19.440 made the exact same criticism. What ells Palmer know about 0:13:19.440 --> 0:13:21.800 the military? What the hell does he know about national security? 0:13:21.960 --> 0:13:23.800 Yeah, his heart's in the right place, but he's just 0:13:23.840 --> 0:13:26.320 not qualified. The leap from. 0:13:26.200 --> 0:13:29.320 Where the people say his credentials are and what he 0:13:29.360 --> 0:13:31.760 needs to do is a much smaller leap than the 0:13:31.760 --> 0:13:33.720 best leaps that I've seen people make in my career. 0:13:33.760 --> 0:13:36.600 So I'm never going to be the guy to say, oh, 0:13:36.679 --> 0:13:39.440 I don't think he's qualified. No, He's way more qualified 0:13:39.480 --> 0:13:41.440 than I've ever been to do any job that I've 0:13:41.480 --> 0:13:43.040 ever done, and I'm doing a pretty good job of it. 0:13:43.160 --> 0:13:45.360 So I mean, God bless him. I think that he's 0:13:45.360 --> 0:13:47.520 a great pick. I read his book, The War on Warriors, 0:13:47.559 --> 0:13:49.880 so I was familiar with him, though not his name 0:13:49.920 --> 0:13:50.600 being in the arena. 0:13:50.720 --> 0:13:53.800 I think he's going to kick ass Palmer. Let's end 0:13:54.000 --> 0:13:57.400 on President Electrum. But in the context of Arsenal one, 0:13:57.640 --> 0:14:01.280 you still believe change is needed in that military industrial 0:14:01.280 --> 0:14:05.600 complex procurement process. Absolutely, what specifically needs to change under 0:14:05.640 --> 0:14:08.400 the next over the next four years to allow for 0:14:08.559 --> 0:14:10.280 Arsenal to be one to be a success? 0:14:10.600 --> 0:14:13.000 I think that we well, I think Arsenal one is 0:14:13.040 --> 0:14:15.640 going to be a success. The amount of change we've 0:14:15.679 --> 0:14:17.640 already had in the system I think will allow that. 0:14:17.679 --> 0:14:19.400 I don't think that we actually need radical changes in 0:14:19.400 --> 0:14:22.040 the system for Androl to do very well, but for 0:14:22.120 --> 0:14:24.440 our country to do well, for us to build a 0:14:24.480 --> 0:14:27.120 national security apperas we need to move quickly. 0:14:27.440 --> 0:14:29.360 We need to take targeted risks. 0:14:29.520 --> 0:14:32.600 We need to get more companies into defense manufacturing. That 0:14:32.720 --> 0:14:37.280 includes companies that are not currently defense companies, getting big 0:14:37.320 --> 0:14:40.160 tech in, getting little tech in, getting a lot of 0:14:40.160 --> 0:14:43.400 our industrial providers in. That is how we won World 0:14:43.400 --> 0:14:45.920 War two, is leveraging the whole of the nation. I 0:14:45.960 --> 0:14:47.800 think that that's the only way that we are going 0:14:47.840 --> 0:14:50.280 to win in the future as well, and I think 0:14:50.280 --> 0:14:52.200 that people who are being brought in are have exactly 0:14:52.240 --> 0:14:55.720 that mindset. We need to spend less, do more, and 0:14:55.800 --> 0:14:56.880 do it with the right things. 0:14:57.200 --> 0:15:00.880 Palmer Lucky Andrew co founder Always a Pleasure Technology Officer. 0:15:01.040 --> 0:15:05.200 Here Columbus, Ohio area the site the future site of 0:15:05.400 --> 0:15:06.120 Arsenal one