Defense tech shifts to software-defined hardware
The thesis argued is that next-generation defense primes must build hardware that is software-defined and hardware-enabled, rather than the legacy approach of hardware-defined and software-enabled.
The argument
The speakers argued that the government historically struggled to value software on its own, whereas hardware has a clear bill of materials. By building software-defined hardware, next-gen defense companies can deliver superior price-performance and bypass legacy cost-plus procurement models.
The thesis, stress-tested
✓ What validates it
- ✓Increased government adoption of commercial-style, fixed-price contracts over cost-plus contracts
- ✓Shorter cycle times from prototype to production-scale defense contracts
▸ Risks discussed
- ▸Government procurement processes remain highly bureaucratic and slow to adapt
- ▸High capital requirements and long R&D cycles for hardware development
Hear it yourself
"And so I went back to the Founders Fund investment team and said, man, I feel like someone should be building a next gen prime that builds hardware but it's software defined and hardware enabled rather than being hardware defined and software enabled."
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