Defence Tech’s Warefare Pitch, Google Rushed to Sell AI to Israel, and the AI Race as a National Security Threat

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This Week in Tech for War and Peace

The tech industry believes it has a solution to the challenges to US power: cheap, smart, and deadly weapons.

The Washington Post has accessed documents showing that Google employees have been working to provide Israel’s military access to the company’s latest AI technology, countering what Google has publicly said.

But first, Dr Heldy Khlaaf and Sara Myers West from the AI Now Institute are concerned that the rush to AI threatens US national security:

“Adversaries could ‘poison’ the data on which A.I. systems are trained, much like a poison pill that, when activated, allows the adversary to manipulate the A.I. system, making it behave in dangerous ways. You can’t fully remove the threat of these vulnerabilities without fundamentally changing how large language models are developed, especially in the context of military use.”

— Dr Heldy Khlaaf, Chief AI scientist, AI Now Insitute, and Sara Myers West, co-executive director, AI Now Institute

The Big Story

Cheap, Smart, Deadly - The Tech Industry’s New Warefare Pitch

The Pentagon faces a significant challenge to US power: paying millions to defend against and intercept threats that cost only thousands.

This issue can be exemplified by the military operation that protected Israel from over 300 missiles and self-destructing drones launched by Iran. The high-tech missiles that countered the attack collectively cost hundreds of millions. An Iranian Shahed drone can be produced for $50,000, whilst the SM-3 missiles used by the US in response cost $28 million each.

Alongside this, another challenge has arisen: while the Pentagon has supplied allies like Israel in addition to US forces, weapons stocks and defence industry supply chains have become stretched. A 2023 report by the Center for Strategic and International Studies showed that if the US went to war with China, it would run out of long-range precision missiles in less than a week.

Anduril and other defence tech companies think they have the solution to these problems: “It’s about making much-lower-cost, easy-to-produce and mass-manufacture weapons that we can resupply in a time of war,” said Brian Schimpf, CEO and co-founder of Anduril, to the Washington Post.

Anduril has deep ties to President Donald Trump’s tech funders and advisers: the company is woven into the network of tech leaders who supported Trump’s campaign and won appointment in the new administration. Vice President JD Vance invested in Anduril, among other defence and space startup-ups, during his previous career as a venture capitalist. Several of Anduril’s co-founders, including Schimpf, have previously worked at Palantir, providing even more links to Vance, David Sacks, and Elon Musk.

Musk, who is leading the nongovernmental group “Department of Government Efficiency,” has said that the Pentagon budget will be a target. Defence tech start-ups that have won projects with the Pentagon, such as Anduril, Shield AI, and Merlin, have a tiny portion of the budget that is otherwise allocated to mega projects awarded to the largest defence companies. In November, he posted a video of a synchronized swarm of drones on X and wrote, “Meanwhile, some idiots are still building manned fighter jets like the F-35.”

Anduril and other start-ups envision the US fielding tens of thousands of small airborne and oceangoing drones that constantly crisscross the Pacific Ocean. The theory goes that these drones would provide superior surveillance and attack capabilities to conventional ships and aircraft at much lower costs.

Google Rushed to Sell AI Tools After the Hamas Attack

The Washington Post has obtained documents showing that Google employees were working to provide Israel’s military access to the company’s latest AI technology during the early weeks of the war.

The documents are internal and show how Google directly assisted Israel’s Defense Ministry and Israel Defense Forces despite publically distancing itself from Israel's defence. The documents show that an employee at Google’s cloud division escalated requests for increased access to the company’s AI technology from Israel’s Defense Ministry, indicating that they wanted to use a Google service called Vertex, which clients can use to apply AI algorithms to their own data.

In one document, a Google employee warned the military that they could turn to Amazon if Google didn’t quickly provide access.

The documents continue until November 2024, showing that Israel’s military kept requesting Google for its latest AI technology, such as Gemini AI.

Google has previously said that the Nimbus contract with Israel is “not directed at highly sensitive, classified, or military workloads relevant to weapons or intelligence services.”

Early last year, Gaby Portnoy, director general of the Israeli government’s National Cyber Directorate, said: “Thanks to the Numbus public cloud, phenomenal things are happening during fighting, these things play a significant part in the victory - I will not elaborate.”

In the News

New Electronic Warfare Technology Makes a Drone Look Giant on Radars

Chinese researchers have developed an electronic warfare system that manipulates radar signals to make small drones appear as large, unidentified objects. This innovation relies on radar cross-section (RCS) manipulation, producing false radar echoes that can overwhelm enemy detection systems. Unlike stealth technology, which seeks to evade detection, this system actively deceives radar operators, providing new tactical advantages in drone warfare. The technology is particularly effective when deployed in swarms, disrupting adversary response strategies. Read more at iHLS.

Estonia’s New Defence Fund Aims to Strengthen European Security

Estonia has launched a €100 million defence investment fund to boost military and dual-use technology development. The initiative, managed by SmartCap, aims to enhance national security while fostering economic growth. By prioritising defence-tech startups, the fund seeks to position Estonia as a leader in military innovation, attract private sector investment, and reinforce NATO’s eastern flank. Estonia’s strategy aligns with broader European efforts to modernise defence capabilities in response to security challenges stemming from the Russia-Ukraine war. Read more at Emerging Europe.

What Does the Rise of AI Firm DeepSeek Mean for the US-China Tech War?

Chinese AI startup DeepSeek has emerged as a major player, challenging US dominance in AI development. Its recent large language model (LLM) R1 rivalled OpenAI’s offerings, highlighting China’s ability to innovate despite US tech restrictions. DeepSeek’s efficiency, low-cost development, and reliance on domestic talent signal a shift in AI leadership competition. While China still lags behind the US in computational power, talent retention, and infrastructure, its progress in AI self-sufficiency is reshaping the global tech rivalry. Read more at South China Morning Post.

Military Drone Market Projected to Reach $56.69 Billion by 2033

The global military drone market, valued at $21.81 billion in 2024, is expected to grow at a CAGR of 11.2%, reaching $56.69 billion by 2033. This surge is driven by increased defence spending, AI integration, and enhanced surveillance capabilities. The US leads the market, investing in autonomous UAVs for reconnaissance and combat operations. NATO nations and China are also expanding their drone programs to bolster strategic capabilities. Emerging technologies like AI and 5G are further accelerating drone development. Read more at Global Newswire.

Japan Hunts for Dual-Use Goods Makers to Aid Military Expansion

Japan is actively pursuing manufacturers of dual-use technologies to support its military expansion amid escalating regional tensions. The government aims to enhance domestic production of advanced materials, sensors, and AI-driven systems that can serve both civilian and military purposes. This initiative aligns with Japan’s defence strategy to bolster self-reliance and counter potential threats from China and North Korea. The effort also reflects a broader global trend of militaries harnessing commercial innovations. Read more at Reuters.

What Helisng’s Move Into Drones Means for European Defence Tech

German AI defence startup Helsing has transitioned from relying solely on software-based solutions to developing its own autonomous strike drones, the HX-2. This shift heightens competition within Europe’s burgeoning defence tech sector, where companies like Quantum Systems and Origin Robotics are also expanding. With €450m in funding, Helsing’s strategic pivot challenges established players in the industry and raises questions about consolidation, government contracts, and market dynamics. Analysts suggest that startups must merge software with hardware to stay competitive, while some anticipate an increase in mergers and acquisitions within the sector. Read more at Stifted.

Lockheed Martin Cautious on 2025 Profit View, Shares Sink 8%

Lockheed Martin forecasted lower-than-expected profits for 2025, leading to an 8% drop in its stock value. The delay in upgrading F-35 fighter jets, crucial for the company’s revenue, continues to impact financial performance. Elon Musk’s push for cost-effective AI-powered weaponry further fueled investor concerns, potentially shifting U.S. defence spending priorities. Despite rising global demand for arms, Lockheed faces supply chain challenges and cost overruns on classified projects. Read more at Reuters.

Korea Ranks the World’s 8th Most Advanced Defense Technology

South Korea has been ranked as the eighth most advanced country in defence science and technology, according to a 2024 report by the Korea Research Institute for Defence Technology Planning and Advancement. The study assessed South Korea’s defence technology as being 82% of the United States’ level, placing it alongside Japan. Notable strengths include artillery systems, such as the K9 self-propelled howitzer, and manoeuvring weapons like the K2 tank. The assessment, conducted every three years, involved 400 experts analysing ten key weapon system categories. The ranking reflects South Korea’s ongoing investment in military modernisation. Read more at korea.net.

Japan Hunts for Dual-Use Goods Makers to Aid Military Expansion

The Japanese government is actively seeking small companies with dual-use technologies to enhance its defence capabilities as part of a ￡275 billion military expansion. Unlike countries with established defence giants, Japan lacks major military-focused firms, prompting outreach to tech startups for innovations such as electromagnetic shielding, exoskeletons, and AI-powered systems. The Self-Defence Forces (SDF) have engaged over 300 firms to explore potential collaborations. This strategy aligns with Japan’s goal of strengthening its defence industry and fostering security ties with allies through shared technological developments. Read more at Reuters.