WEBVTT - Bloomberg Tech Screentime Special 0:00:02.520 --> 0:00:04.210 Bloomberg Audio Studios. 0:00:04.690 --> 0:00:06.210 Podcasts. Radio. 0:00:06.650 --> 0:00:07.050 News. 0:00:13.330 --> 0:00:16.880 Bloomberg Tech is live from the heart of Silicon Valley 0:00:17.420 --> 0:00:19.700 with Ed Ludlow in San Francisco. 0:00:25.840 --> 0:00:28.940 Welcome to a special edition of Bloomberg Tech, live from 0:00:29.000 --> 0:00:34.290 Skunk Works, Lockheed Martin's advanced aircraft development facility in Southern California. 0:00:34.350 --> 0:00:37.030 Today, we go all in on defense tech and. 0:00:36.970 --> 0:00:39.430 Discuss with some of the biggest names in this booming industry, 0:00:39.630 --> 0:00:42.879 from the conflict in Iran and competition with China to 0:00:42.940 --> 0:00:46.659 working with the U.S. government, AI's role. in the future 0:00:47.140 --> 0:00:49.180 of warfare. We start with one of the most profound 0:00:49.240 --> 0:00:53.139 changes for the defense tech industry, how it's doing business 0:00:53.200 --> 0:00:55.970 with the Pentagon. It used to be that defense companies 0:00:56.010 --> 0:01:00.990 competed for contracts based on requirements set by the government. Now, 0:01:01.110 --> 0:01:05.110 Lockheed Martin's CEO, Jim Tyclair, wants to pitch that technology 0:01:05.370 --> 0:01:07.990 before the U.S. government comes asking. I sat down with 0:01:08.030 --> 0:01:09.289 him to discuss. 0:01:08.990 --> 0:01:12.740 That and much more. Typically, the U.S. 0:01:12.780 --> 0:01:15.660 Government would set requirements or the armed services would set 0:01:15.700 --> 0:01:19.030 requirements and say, well, I want a new plane that 0:01:19.050 --> 0:01:21.970 goes this speed at this altitude, can carry this much 0:01:22.010 --> 0:01:26.810 equipment and weapons, whatever. And here's a 500-page set of 0:01:27.190 --> 0:01:28.010 requirements that. 0:01:27.970 --> 0:01:30.789 We've identified that we want you to design to. 0:01:31.470 --> 0:01:34.110 Two or three of us would get, companies would get 0:01:34.450 --> 0:01:35.500 requests for information. 0:01:35.720 --> 0:01:39.190 Can you do this? What are these requirements going to 0:01:39.209 --> 0:01:41.839 take to create? What's it going to cost? 0:01:42.709 --> 0:01:45.050 And then there'd be a bunch of input back from industry, 0:01:45.069 --> 0:01:46.780 and then there'd be a request for a proposal. Okay, 0:01:46.810 --> 0:01:49.160 who really wants to step up and try to do this? 0:01:49.760 --> 0:01:54.960 Very well-defined, extremely well-defined requirement set. And then there'd be 0:01:55.000 --> 0:01:57.280 two or three bidders. It'd be down selected to one, 0:01:57.480 --> 0:02:00.419 usually the lowest-cost provider who was technically qualified would get 0:02:00.460 --> 0:02:00.940 the job. 0:02:01.520 --> 0:02:05.110 And then it would take years to actually create that capability. 0:02:05.970 --> 0:02:07.390 What is different now. 0:02:07.670 --> 0:02:12.660 Is that the current– leadership in the Pentagon has decided 0:02:12.750 --> 0:02:15.570 to take the straitjacket off the companies, which allows us 0:02:15.590 --> 0:02:18.170 to take the straitjackets off of our engineers and scientists, 0:02:18.669 --> 0:02:21.680 to allow us to be flexible, to propose solutions, to 0:02:21.720 --> 0:02:24.460 do prototypes, to go out, we go out in the field, 0:02:24.820 --> 0:02:26.600 and the field could be the Pacific Ocean, of course, 0:02:26.639 --> 0:02:30.920 for us, And we test prototypes on actual ships with 0:02:30.980 --> 0:02:34.109 sailors that are stationed on the ships running the prototype 0:02:34.130 --> 0:02:36.130 to see if it works. And so then we'll come 0:02:36.190 --> 0:02:38.750 back with that or an Army test range like Yuma 0:02:38.810 --> 0:02:42.550 Proving Ground. We actually shot some of our JAGA missiles 0:02:42.730 --> 0:02:46.590 out of our Grizzly launcher and showed the Army and 0:02:46.770 --> 0:02:48.250 had their people operate it. 0:02:48.490 --> 0:02:51.680 It worked. So we have this integration capability now. 0:02:52.240 --> 0:02:56.169 The straitjacket's off the companies and the industry, and we 0:02:56.230 --> 0:02:58.490 welcome the new entrants. We welcome the startups because we 0:02:58.530 --> 0:03:01.740 want that creativity so we can learn from it. And 0:03:01.780 --> 0:03:03.660 so if we see somebody can do like Fordham, a 0:03:03.680 --> 0:03:07.510 better capability at a certain size and shape and cost 0:03:07.530 --> 0:03:09.950 than we can, we want to bring that in really quickly. 0:03:10.350 --> 0:03:13.730 So we welcome those investors. We welcome that talent. 0:03:14.050 --> 0:03:16.390 We welcome that technology because we want to integrate it 0:03:16.450 --> 0:03:17.450 into our mission sets. 0:03:18.070 --> 0:03:20.400 And again, we can be the subcontractor too. 0:03:20.460 --> 0:03:24.480 If someone else has got a better mission profile solution 0:03:24.500 --> 0:03:27.420 than we do, we would love to put the F-35 0:03:27.460 --> 0:03:28.400 into that profile. 0:03:28.800 --> 0:03:31.130 So this can go both ways, actually, Ed. 0:03:31.650 --> 0:03:35.750 Jim, what is Lockheed Martin's AI strategy? How core is 0:03:35.900 --> 0:03:38.480 AI to that technology roadmap? 0:03:39.240 --> 0:03:42.320 It's very fundamental to the company and everything that we're doing. 0:03:44.030 --> 0:03:47.030 Our chief engineer, when I started the company in management 0:03:47.450 --> 0:03:50.430 six years ago, said AI is really critical. And, of course, 0:03:50.450 --> 0:03:53.150 to ask for budget to invest in our own AI 0:03:54.310 --> 0:03:59.610 containerized instance where we would not be going using data 0:03:59.630 --> 0:04:02.680 sets off the Internet. We would not be using models 0:04:02.720 --> 0:04:05.740 and then feeding our information back into the system where 0:04:05.800 --> 0:04:10.760 we would have a basically a controlled environment for our 0:04:10.840 --> 0:04:14.780 AI workloads. And one of our partners, again, in the 0:04:14.840 --> 0:04:18.140 technology space has been Jensen Wong. Back in 2000, 2001, 0:04:18.120 --> 0:04:21.520 where hardly anyone maybe had heard of NVIDIA, if you 0:04:21.560 --> 0:04:25.240 weren't a gamer, we were teamed with NVIDIA to get GPUs. 0:04:26.160 --> 0:04:31.099 And that relationship continues today. So we have our own GPUs. 0:04:31.180 --> 0:04:32.550 We have our own platforms. 0:04:32.960 --> 0:04:33.550 We host. 0:04:34.880 --> 0:04:39.370 AI models on our own platforms and on our own GPUs. 0:04:39.770 --> 0:04:42.210 We use only data that we've generated or we get 0:04:42.230 --> 0:04:45.590 from the U.S. government, and then we can create AI-driven 0:04:45.630 --> 0:04:48.560 solutions to those many of those mission sets that we 0:04:48.580 --> 0:04:49.679 just talked about a little bit earlier. 0:04:50.440 --> 0:04:53.880 That was my exclusive conversation with Lockheed Martin's CEO, Jim Ticlac. 0:04:53.940 --> 0:04:57.849 You can find the full video online, Bloomberg.com and on YouTube. 0:04:58.400 --> 0:05:01.210 For more than 80 years, Lockheed Martin Skunk Works has 0:05:01.250 --> 0:05:04.710 helped define the cutting edge of American air power. We 0:05:04.770 --> 0:05:08.750 are live from that storied operation with actually its former leader, 0:05:08.850 --> 0:05:12.900 OJ Sanchez, who now runs Lockheed Martin's $ 30 billion plus 0:05:12.960 --> 0:05:16.359 aeronautics business. And I think we should start Skunk Works. 0:05:17.460 --> 0:05:21.540 You led this team, this culture, this place for some time, 0:05:21.600 --> 0:05:23.380 and you still work so closely with them. 0:05:23.779 --> 0:05:26.300 Where are we? What goes on here? 0:05:26.580 --> 0:05:28.340 Well, first, welcome to Skunk Works. 0:05:28.500 --> 0:05:30.700 So I hope your team is enjoying the mystery and 0:05:30.720 --> 0:05:33.680 the magic that is here. And Skunk Works, as you mentioned, 0:05:33.700 --> 0:05:37.820 for 80 years, has existed for the purpose of delivering 0:05:37.900 --> 0:05:40.770 on urgent national security objectives. And so where we are 0:05:40.850 --> 0:05:43.200 is continuing that mission, which matters to all of us. 0:05:43.290 --> 0:05:46.740 And in this moment, Like we've heard, nations need us 0:05:46.779 --> 0:05:48.400 to go faster. They need us to be able to 0:05:48.440 --> 0:05:51.650 bring capabilities to the fight and to deterrence with speed 0:05:51.810 --> 0:05:54.849 and with an interoperability purpose that only Skunk Works has 0:05:54.890 --> 0:05:57.110 really delivered on in the past. And so we're excited 0:05:57.150 --> 0:05:58.550 about what Skunk Works contributes. 0:05:58.610 --> 0:06:01.570 There's so much familiarity with F-35, right? From the American public, 0:06:01.610 --> 0:06:07.510 the world, a manned fighter. But Vectis is the autonomous craft, 0:06:07.850 --> 0:06:11.230 the basic idea born out of Skunk Works. How does 0:06:11.270 --> 0:06:15.910 that work? Being, you know, an idea... to capability deployment? 0:06:16.450 --> 0:06:19.930 So core to delivering on those security objectives are knowing 0:06:20.190 --> 0:06:24.310 what our customers need well ahead of time. What we've done, F-35, 0:06:24.350 --> 0:06:26.419 as you know, was actually invented here in Skunkworth. It 0:06:26.440 --> 0:06:29.900 was delivered and now it's being produced in the bigger aeronautics. Vectis, 0:06:29.940 --> 0:06:32.839 very similar, comes from a long DNA of drone technology 0:06:33.350 --> 0:06:36.050 development that we did starting in the 60s all the 0:06:36.089 --> 0:06:37.969 way till now and what it's going to do on that. 0:06:37.910 --> 0:06:40.210 Point sorry to interrupt of course in the 60s there 0:06:40.250 --> 0:06:42.130 was work on drones what we. 0:06:42.029 --> 0:06:44.010 Yes it's a great skunk work story if you go 0:06:44.029 --> 0:06:45.850 back and look in the past like many skunk work 0:06:45.870 --> 0:06:49.500 stories the u.s and the soviet union signed a treaty 0:06:49.540 --> 0:06:51.580 that said we won't fly manned flights over one another 0:06:51.600 --> 0:06:54.650 country Immediately the CIA came to Skunk Works and said, 0:06:54.870 --> 0:06:57.450 we need to fly over that country. And out of 0:06:57.490 --> 0:06:59.350 that was born, out of that in the 60s was 0:06:59.390 --> 0:07:02.130 born the D-21, flew 2,000 miles an hour as a 0:07:02.190 --> 0:07:05.900 drone in the 60s, and now that heritage we find 0:07:05.940 --> 0:07:06.980 behind us in. 0:07:06.920 --> 0:07:07.900 The Lockheed Martin Vectus. 0:07:08.000 --> 0:07:10.960 And so Vectus is bringing together both the ability to 0:07:11.380 --> 0:07:15.420 design and develop advanced hardware with advanced capabilities in the 0:07:15.480 --> 0:07:18.900 software and open architecture that's going to come alongside the 0:07:18.920 --> 0:07:20.840 F-35 and create the future of air dominance. 0:07:20.940 --> 0:07:24.900 You know, This is being internally funded, Vectis. But is 0:07:24.990 --> 0:07:28.530 Vectis the next big franchise, the next big aeronautic franchise 0:07:28.570 --> 0:07:32.030 for the company, irrespective of whether there's a human... in 0:07:32.050 --> 0:07:32.940 that platform or not. 0:07:33.100 --> 0:07:33.500 There isn't. 0:07:34.060 --> 0:07:34.720 Yeah, that's right. 0:07:34.760 --> 0:07:38.580 So what Vectis represents is us understanding our customers' problems 0:07:38.640 --> 0:07:40.060 and the challenges that we're going to see in our 0:07:40.080 --> 0:07:42.860 dominance and getting ahead of that. We like to say 0:07:42.900 --> 0:07:46.060 here at Skunk Works, only one miracle per program. And 0:07:46.080 --> 0:07:48.340 the reality is that we have to burn down those 0:07:48.420 --> 0:07:50.820 miracles in order to land at a program like Vectis. 0:07:50.860 --> 0:07:53.080 So while it appears new to the public, we've been 0:07:53.120 --> 0:07:55.150 working on the pieces of that. So as far as 0:07:55.170 --> 0:07:58.430 the franchise goes... We've invested in the technologies that will 0:07:58.450 --> 0:08:02.370 build this incredible CCA for a long time, and now 0:08:02.430 --> 0:08:05.490 we're getting out ahead of requirements, listening to the global 0:08:05.510 --> 0:08:09.570 demand for these, and we see that capability in this lethal, survivable, 0:08:09.740 --> 0:08:15.060 adaptable airplane that we're building to come alongside the incredible 0:08:15.100 --> 0:08:18.260 work that the fifth-generation platforms, both the F-22 and the F-35, 0:08:18.300 --> 0:08:19.400 have proven valuable. 0:08:20.650 --> 0:08:22.950 How much does a program like that cost? What does 0:08:23.010 --> 0:08:24.430 it take in dollar terms? 0:08:24.450 --> 0:08:26.890 Well, I will tell you it takes incredible commitment. And 0:08:26.930 --> 0:08:30.720 so at Lockheed Martin, we're committed to invest ahead in 0:08:30.820 --> 0:08:33.180 order to be able to deliver on these solutions. And 0:08:33.220 --> 0:08:36.240 so while the exact numbers are less important than the commitment, 0:08:36.800 --> 0:08:41.910 every day we are focused on those things that we 0:08:41.950 --> 0:08:45.110 think will matter the most. And listening to the global 0:08:45.190 --> 0:08:48.209 need for this capability is We're investing to make sure 0:08:48.250 --> 0:08:48.630 it's ready. 0:08:49.030 --> 0:08:52.390 The reason I ask you about the next truly major 0:08:52.610 --> 0:08:55.480 aeronautics franchise, if you think about the next generation US 0:08:55.550 --> 0:08:58.380 aircraft programs, several of them have gone to some of 0:08:58.420 --> 0:09:03.100 your rivals. Is Vectis the response to that? Or is 0:09:03.300 --> 0:09:06.760 it in isolation? It is something different to the F-35 0:09:06.800 --> 0:09:08.360 program entirely. 0:09:09.090 --> 0:09:11.590 So what I see for the future of air dominance 0:09:12.070 --> 0:09:15.929 is actually not a singular platform. It's about the family 0:09:16.010 --> 0:09:18.170 of systems and platforms that are going to be able 0:09:18.220 --> 0:09:22.160 to connect across domains, from space, through the air, down 0:09:22.179 --> 0:09:25.100 to the sea, to all the shooters. And so Vectis 0:09:25.160 --> 0:09:28.839 is not in response to any particular competition. What it is, 0:09:28.940 --> 0:09:31.830 is it's the realization of what's going to be required 0:09:31.950 --> 0:09:34.370 to deter fight and win in the future. And so 0:09:34.910 --> 0:09:37.650 I believe that what you're seeing behind you is where 0:09:37.740 --> 0:09:40.620 we're going to start adding capability to that family of systems. 0:09:41.059 --> 0:09:44.140 And programs like the F-35, a lot of people don't realize, 0:09:44.220 --> 0:09:47.620 there's 1,350 F-35s out in the world already today. 0:09:47.720 --> 0:09:50.300 They're in combat. That fleet is growing at about 160. 0:09:50.300 --> 0:09:50.500 U.S. 0:09:50.559 --> 0:09:51.140 And allies. 0:09:51.500 --> 0:09:51.760 U.S. 0:09:51.850 --> 0:09:52.430 And allies. 0:09:52.870 --> 0:09:55.870 That fleet is growing at about 160 a year. When 0:09:55.929 --> 0:09:59.470 we add the capabilities like Vectis, we've shown that Vectis 0:09:59.530 --> 0:10:03.080 can be controlled by a single F-35, as many as eight. 0:10:04.380 --> 0:10:06.660 As many as eight Vectis by a single one. Imagine 0:10:06.679 --> 0:10:09.480 the mass and scale of a program like that. So yes, 0:10:09.540 --> 0:10:12.960 we do see this future family of systems underpinned by 0:10:13.000 --> 0:10:16.540 the fifth generation airplanes we have and augmented by capabilities 0:10:16.580 --> 0:10:17.099 like Vectis. 0:10:18.020 --> 0:10:21.160 Project Meridian is the big news item for your industry. 0:10:21.559 --> 0:10:26.920 In simple terms, Secretary Hegseth is signing a 120-day effort 0:10:27.000 --> 0:10:29.719 to do the same thing you've kind of pitched, get 0:10:29.780 --> 0:10:34.380 ahead of the threat, come with proposals. Elon Musk is involved. 0:10:34.730 --> 0:10:38.630 Andrew Osborne-Malucky is involved. Your response to it, your interpretation 0:10:38.650 --> 0:10:41.770 of it, it seems similar to what you say you're doing. 0:10:42.850 --> 0:10:43.209 I love it. 0:10:43.429 --> 0:10:46.730 I appreciate the leadership that Secretary Hegseth has at looking 0:10:46.809 --> 0:10:50.490 through Project Meridian at the changing nature of warfare, what 0:10:50.530 --> 0:10:53.450 we should see and learn from conflicts we have and 0:10:53.510 --> 0:10:55.870 how we best prepare for the future. So here at 0:10:55.910 --> 0:10:58.990 Lockheed Martin, we are always in that posture, looking ahead. 0:10:59.070 --> 0:11:01.819 And what Project Meridian will do, we talk about that 0:11:01.880 --> 0:11:04.240 big tent. We, of course, I'm in and out of 0:11:04.260 --> 0:11:07.680 the Pentagon every week sometimes. And so we work directly 0:11:07.740 --> 0:11:10.540 with the Department of War as well as the agencies 0:11:10.620 --> 0:11:13.300 to help envision this. Meridian's going to help open up 0:11:13.360 --> 0:11:16.080 that tent to enable others. And here at Skunk Works 0:11:16.120 --> 0:11:19.180 and across all our Lockheed Martin organizations, if we find 0:11:19.260 --> 0:11:21.560 something in that, we'll pull that into that bigger tent 0:11:21.620 --> 0:11:23.440 and then help deliver capabilities for the future. 0:11:23.480 --> 0:11:24.640 This is a question I got for you from the 0:11:24.660 --> 0:11:27.420 Bloomberg tech audience, the big tent. Let's say there's a 0:11:27.470 --> 0:11:31.150 close air support mission. Vectis is involved. Again, there isn't 0:11:31.190 --> 0:11:34.110 a set customer production contract yet. But how does that 0:11:34.190 --> 0:11:36.229 work in real time? For the everyday person, what are 0:11:36.250 --> 0:11:36.989 you talking about there? 0:11:37.210 --> 0:11:38.130 So that's a great question. 0:11:38.309 --> 0:11:41.590 So I used to get to fly these airplanes, so 0:11:41.610 --> 0:11:45.059 I flew the F-22 in the past. And fifth-generation airplanes 0:11:45.179 --> 0:11:48.819 like the F-22 and the F-35 have what's called sensor fusion, 0:11:49.160 --> 0:11:51.479 where you can see the entirety of the battle space 0:11:51.580 --> 0:11:54.040 right in front of you. And what you're usually limited 0:11:54.080 --> 0:11:56.260 by is the ability to get others to see it 0:11:56.600 --> 0:11:59.680 or to be able to have enough weapons or ability 0:11:59.740 --> 0:12:02.520 to get to every place. What Vectis is going to 0:12:02.559 --> 0:12:04.610 do in a situation like that is it's going to 0:12:04.710 --> 0:12:09.120 extend that capability, that incredible capability, fusion and decision advantage 0:12:09.500 --> 0:12:13.390 into actionable capabilities, whether that be an air-to-air mission, an 0:12:13.429 --> 0:12:18.070 air-to-ground mission, or a sensing mission, the vectus accoutrement to 0:12:18.110 --> 0:12:21.150 the F-35, F-22, or others is going to make everybody 0:12:21.190 --> 0:12:24.910 better and enable that force of action to happen in 0:12:24.929 --> 0:12:28.020 a much wider area of responsibility, which is going to 0:12:28.050 --> 0:12:29.920 be a tremendous help to the warfighter. 0:12:30.340 --> 0:12:34.370 Another curious news story, is NASA bringing back the SR-71? 0:12:35.880 --> 0:12:36.940 Are you going to help them with that? 0:12:37.179 --> 0:12:39.740 So the SR-71, for those who don't know, was also 0:12:39.840 --> 0:12:41.020 invented in the Skunk Works. 0:12:41.059 --> 0:12:41.420 It was. 0:12:41.520 --> 0:12:43.900 And if you haven't seen it in a while, I'd 0:12:43.920 --> 0:12:47.880 encourage you to go look. Incredible airplane, flew at unbelievable speeds. 0:12:48.260 --> 0:12:52.829 And here at Skunk Works, 97% of the portfolio is classified. 0:12:52.890 --> 0:12:55.830 And so I would love to see the SR-71 fly again. 0:12:55.870 --> 0:12:57.370 We'll just have to wait and see what NASA. 0:12:57.230 --> 0:12:57.600 Chooses to do. 0:12:57.610 --> 0:13:00.050 Okay, well, Bloomberg Tech did a pretty good job being 0:13:00.070 --> 0:13:02.270 able to get it into the building. But I appreciate 0:13:02.330 --> 0:13:04.230 the classified nature of it. of a lot of what 0:13:04.250 --> 0:13:06.910 goes on here. It's been fascinating to speak with you, 0:13:07.429 --> 0:13:10.770 OJ Sanchez of Lockheed Martin. Thank you very much. And 0:13:10.860 --> 0:13:13.340 thank you to the team for having us here. There's 0:13:13.380 --> 0:13:14.680 a lot more to come. We're going to speak to 0:13:14.700 --> 0:13:18.140 John Gruen, CEO of Fortin. That's a startup Lockheed has 0:13:18.240 --> 0:13:19.140 backed twice. 0:13:19.820 --> 0:13:22.200 They also work together. This is the big tent idea. 0:13:22.860 --> 0:13:24.220 That's next. This is Bloomberg Tech. 0:13:36.470 --> 0:13:39.850 Despite the growth of venture-backed defense tech firms, defense primes 0:13:40.010 --> 0:13:42.319 still receive a third of U.S. 0:13:42.340 --> 0:13:43.220 Military contracts. 0:13:43.679 --> 0:13:46.960 These figures are from 2025, but it's held around that 0:13:47.020 --> 0:13:50.660 rate for about 10 years. The primes, though, aren't ignoring 0:13:50.700 --> 0:13:54.660 what these startups can offer and are increasingly partnering with them, 0:13:55.070 --> 0:13:57.670 like when Lockheed needed a new radar system for a 0:13:57.730 --> 0:13:59.310 new containerized launcher. 0:14:00.790 --> 0:14:04.080 We also said, well, we need a mobile, relatively inexpensive 0:14:04.160 --> 0:14:07.380 radar to go along with this amazing system. And one 0:14:07.400 --> 0:14:11.040 of our venture investments called Fordham builds those kinds of radars. 0:14:11.240 --> 0:14:14.729 And we put another $ 25 million into the company and said, 0:14:15.130 --> 0:14:18.490 here's the mission. We need a radar with this weight, 0:14:18.530 --> 0:14:19.430 this form factor. 0:14:19.770 --> 0:14:21.350 This mobility, this battery life. 0:14:21.510 --> 0:14:25.239 So again, if you think differently, like a technology company 0:14:25.250 --> 0:14:29.100 would think, and constantly improve what you have, add the 0:14:29.140 --> 0:14:33.100 new hardware when it's ready, you can continuously improve the 0:14:33.140 --> 0:14:34.080 mission capability. 0:14:34.740 --> 0:14:37.260 Fordham CEO John Gruen joins us now. And actually, the 0:14:37.300 --> 0:14:40.780 breaking news of the last 24 hours is $ 50 million 0:14:40.800 --> 0:14:46.250 Series B. Lockheed participated in that. That's a sizable round. 0:14:46.530 --> 0:14:48.850 What do you need that capital for? 0:14:49.610 --> 0:14:51.050 And congratulations. Thank you very much. 0:14:51.070 --> 0:14:55.340 Really appreciate it. And we absolutely need it to continue 0:14:55.360 --> 0:14:59.980 to scale. So we are doubling manufacturing this year. We 0:15:00.020 --> 0:15:03.200 are doubling our bookings. We're adding 250% of floor space. 0:15:06.680 --> 0:15:09.700 And all of that requires capital to do. 0:15:09.900 --> 0:15:12.800 Okay, so let's go to the case study that Lockheed's CEO, 0:15:12.820 --> 0:15:16.170 Jim Teichert, just outlined to me, right? They approach you. 0:15:16.590 --> 0:15:20.610 They like your technology. How does that then work? The mission, 0:15:20.870 --> 0:15:21.210 the plan. 0:15:22.070 --> 0:15:24.470 Yeah, it's been a great partnership with Lockheed Martin. It 0:15:24.510 --> 0:15:28.120 started on the venture side. So we were earlier in 0:15:28.220 --> 0:15:32.560 our stage and engaged with the venture team. They really 0:15:32.640 --> 0:15:36.440 validated our core technologies and then enabled, once they had 0:15:36.480 --> 0:15:39.360 done that and put a little venture money into us, 0:15:39.760 --> 0:15:42.660 then we had exposure to the rest of the corporation 0:15:43.060 --> 0:15:45.630 and were able to go find the right projects. projects 0:15:46.030 --> 0:15:49.840 for our technology to be applicable to. And so over time, 0:15:50.320 --> 0:15:53.600 that has grown and we've done a number of projects 0:15:53.620 --> 0:15:56.740 and products that have real traction in the market. So 0:15:56.820 --> 0:16:00.040 this current investment is really a reflection of that, of 0:16:00.080 --> 0:16:04.640 the market traction of the capabilities of our integrated products. 0:16:05.040 --> 0:16:09.250 You know, we're here in Skunk Works in the United States, California. 0:16:09.270 --> 0:16:10.050 I appreciate that. 0:16:10.550 --> 0:16:13.970 What's happening in Europe and Ukraine in the war in 0:16:14.010 --> 0:16:17.970 Iran is you know, drones. 0:16:17.610 --> 0:16:21.070 In warfare, that's the learning, I think. 0:16:21.230 --> 0:16:24.630 You know, that's what I'm hearing from this Pentagon and 0:16:24.750 --> 0:16:26.450 from Jim himself. 0:16:27.090 --> 0:16:30.500 Where does Fortin fit in in that? Yeah, we're instrumental 0:16:30.510 --> 0:16:30.750 in that. 0:16:31.300 --> 0:16:34.380 So we've been in all of those war zones for 0:16:34.400 --> 0:16:35.420 four to five years. 0:16:36.180 --> 0:16:37.860 We have learned all those hard lessons. 0:16:38.500 --> 0:16:41.320 And so we are very out in front and rapidly 0:16:41.360 --> 0:16:45.100 developing the technologies and the products that are going to 0:16:45.140 --> 0:16:48.000 be the forefront of warfare in the future. 0:16:48.020 --> 0:16:50.900 Right, because that data that I shared, right, Bloomberg's Zoe 0:16:50.920 --> 0:16:53.860 Thomas put that together, that's like the drone spending. Is 0:16:53.880 --> 0:16:56.940 that different from counter drone spending? Like there's a distinction 0:16:56.980 --> 0:16:58.500 in those roadmaps, right? 0:16:58.520 --> 0:17:02.380 Yes, today drone and counter drone are different budget line 0:17:02.420 --> 0:17:06.830 items typically and bought by different, customer sets. And so 0:17:07.470 --> 0:17:11.790 it is a dynamic of the market and having to, 0:17:11.910 --> 0:17:14.369 but it is a cat and mouse game in some sense. 0:17:14.550 --> 0:17:19.610 So rapid development on the drone, threat, offensive side, you 0:17:19.650 --> 0:17:21.909 have to be out in front on the defensive side. 0:17:22.530 --> 0:17:25.800 And defensive typically means layers to be effective. 0:17:26.140 --> 0:17:27.780 So it's not a one for one. 0:17:27.960 --> 0:17:31.899 It's more, I need a layered solution of sensors and 0:17:31.940 --> 0:17:34.859 effectors to to really be ready for any of those 0:17:35.100 --> 0:17:35.940 dynamic threats. 0:17:36.140 --> 0:17:37.320 You're an American company. 0:17:38.080 --> 0:17:40.659 How are you able to do business with our Western allies, 0:17:40.700 --> 0:17:41.760 with our NATO allies? 0:17:42.560 --> 0:17:43.100 Partnerships. 0:17:43.320 --> 0:17:45.720 So whether it's Lockheed Martin internationally. 0:17:45.740 --> 0:17:47.300 That's the sales channel, basically. 0:17:47.380 --> 0:17:48.439 Or some other partnerships. 0:17:49.330 --> 0:17:53.170 Basically, any customer today, if you have a best of 0:17:53.530 --> 0:17:56.630 breed product, if you have the right product, they will 0:17:56.710 --> 0:18:00.050 buy it from you. And so we are definitely looking 0:18:00.330 --> 0:18:02.929 to make sure that we have enduring partnerships around the 0:18:02.970 --> 0:18:05.980 world that allow us to continue what we've built there. 0:18:06.380 --> 0:18:09.600 But it really ends up being you've got to be 0:18:09.619 --> 0:18:10.020 the best. 0:18:10.500 --> 0:18:13.199 What happens next for you, John? What's your priority for 0:18:13.220 --> 0:18:14.320 growing this company? 0:18:14.820 --> 0:18:17.220 I think exactly that, staying out ahead. So staying out 0:18:17.320 --> 0:18:21.139 ahead of the demand on the products. We have to 0:18:21.180 --> 0:18:24.429 deliver scale that we've never done before. But then at 0:18:24.450 --> 0:18:28.370 the same time, staying ahead of that offensive threat curve, 0:18:28.730 --> 0:18:31.889 we've got to make sure we're taking the data, applying 0:18:31.930 --> 0:18:34.899 it into our new products, and then having the partnerships 0:18:34.940 --> 0:18:36.119 to deploy it out there at scale. 0:18:36.810 --> 0:18:40.770 John Gruen, CEO of Fordham, just closed $ 50 million Series B. 0:18:41.050 --> 0:18:44.570 Lockheed participate, but they also now extend that to technology, 0:18:44.950 --> 0:18:45.910 working together on the mission. 0:18:45.930 --> 0:18:46.930 Thank you very much indeed. 0:18:47.580 --> 0:18:51.659 Coming up here at the Skunk Works, Lockheed Martin, California, 0:18:51.740 --> 0:18:55.020 tech billionaires Elon Musk and Palmer Luckey may get a 0:18:55.100 --> 0:18:56.420 say in the future of warfare. 0:18:56.440 --> 0:18:59.380 We're going to explain that one next. This is Bloomberg Tech. 0:19:06.580 --> 0:19:08.270 Thank you. 0:19:17.930 --> 0:19:20.669 The Defense Department has tasked two of its biggest contractors 0:19:20.750 --> 0:19:23.830 to lead an effort to study the future of warfare 0:19:24.030 --> 0:19:27.750 and design weapons that American service members will need in 0:19:27.790 --> 0:19:28.270 the years ahead. 0:19:28.290 --> 0:19:30.830 The initiative is called Project Meridian, and. 0:19:30.810 --> 0:19:34.389 It's going to be co-led by lucky Elon Musk and 0:19:34.410 --> 0:19:38.290 former House Speaker Newt Gingrich. Bloomberg's Wendy Benjaminson is with me. 0:19:38.850 --> 0:19:41.970 It was so interesting when this announcement was made. Can 0:19:41.990 --> 0:19:44.180 you just explain the basic concept, Wendy? 0:19:45.609 --> 0:19:49.050 Yes, I'll do my best. I mean, Defense Secretary Pete 0:19:49.130 --> 0:19:53.080 Hegseth announced this as one of six initiatives he announced 0:19:53.240 --> 0:19:55.780 in his State of the Force speech that he gave 0:19:55.920 --> 0:20:00.820 on Wednesday to an audience of handpicked troops and then 0:20:00.859 --> 0:20:07.280 was broadcast on the Pentagon's website. But it was... What 0:20:07.359 --> 0:20:11.040 this is, supposedly, is a group of people led by 0:20:11.119 --> 0:20:16.940 those three that you mentioned that will study over 120 0:20:16.940 --> 0:20:21.240 days only, that's all they have for this, will study 0:20:21.730 --> 0:20:25.369 what warfare will look like in the future, what tools 0:20:25.430 --> 0:20:28.650 they need, what weapons they need, what vehicles they need. 0:20:29.530 --> 0:20:32.810 What makes this particularly interesting is that Elon Musk and 0:20:32.830 --> 0:20:36.070 Palmer Luckey are two of the biggest defense contractors in 0:20:36.680 --> 0:20:40.290 They make a tremendous amount of money from the U.S. 0:20:40.310 --> 0:20:43.970 taxpayer via the Pentagon, and now they are in charge 0:20:44.390 --> 0:20:48.689 of deciding what tools the military will have. And I 0:20:49.310 --> 0:20:53.020 can't imagine a world in which they don't profit from this. 0:20:56.590 --> 0:20:59.630 Wendy, you and I have discussed, you know, the president's 0:20:59.690 --> 0:21:04.740 proximity to CEOs, private industry. You noted that the 128 0:21:04.740 --> 0:21:07.470 20 day limit. I mean, what kind of access and 0:21:07.530 --> 0:21:10.629