For years, the U.S. defense industry has been regarded as a value investment, but in recent years it has become increasingly aligned with growth-oriented investing. As global conflicts intensify, new technologies—from artificial intelligence and low-cost drones to sensors, robotics, and unmanned systems—are fundamentally transforming the nature of warfare. This is fueling an investment boom, but whether it leads to better national security outcomes depends on whether militaries can fully leverage the three "Ds" of modern defense: disruption, dual use, and decentralization. While most investment capital still flows into traditional defense industry "giants," incremental growth and much of the market enthusiasm are centered around next-generation defense technology companies like Anduril Industries. The rise of these firms is based on the idea that war, like the world itself, is becoming more digitalized and decentralized. Conflicts are increasingly asymmetric—smaller nations like Ukraine or Iran today can now counter major powers by leveraging low-cost technologies. At the same time, growing demands for faster supply chains, greater resilience, and higher redundancy are shifting everything—from drone manufacturing to AI data center deployment—closer to home. The old, highly globalized and centralized defense model is undergoing transformation. This also requires nations to integrate new technologies and ways of working into existing institutional frameworks and procurement models. Building in a decentralized manner, breaking through bureaucratic red tape in traditional acquisition processes to enable cooperation with allies, and establishing multiple production nodes may be viable approaches. In the era of drone warfare, nearly everything visible becomes a target, requiring a complete rethinking of everything from munitions and warships to food systems. Leveraging cutting-edge technologies, various military supplies—including food—could ultimately be produced locally through highly distributed production models.
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Original article: toutiao.com/article/1865493347319818/
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