Tech executives say U.S. defense supply chains lag China
At Fortune Brainstorm Tech, investors and defense-tech executives warned that U.S. military production and procurement need faster private-sector help.
By Maya Lindqvist · Senior Technology Correspondent
3 min read
Technology investors and defense executives warned that the U.S. defense industrial base is not built for the speed and scale of current military competition with China. Speaking at Fortune’s Brainstorm Tech conference in Aspen, Colorado, the group said weaknesses in minerals, components, drones and procurement could undercut U.S. security.
The discussion included Teresa Carlson, chief executive of the General Catalyst Institute; Jon Garrity, chief executive of defense technology startup Tagup; Aidan Madigan-Curtis, a partner at Eclipse; and Peter Wilczynski, chief product officer at Vantor, according to Fortune. The panelists argued that the U.S. needs more venture capital, more dual-use technology and closer cooperation between government and industry.
Supply chain risks draw focus
The panelists pointed to China’s control of rare earth elements and other critical minerals as a national security risk, according to Fortune. They said China has shown it is willing to use that leverage politically.
They also warned that many parts used in major military systems, including large ships, depend on a single supplier, according to Fortune. The group said U.S. ammunition infrastructure has changed little since World War II and that the country trails China in drone production.
Madigan-Curtis said China has far greater tactical drone capacity than the United States, according to Fortune. He also said China is the only country with a strong robotics ecosystem and that the U.S. does not currently have comparable capacity.
The warnings echoed remarks at the same conference by Brian Schimpf, chief executive of Anduril, who said the U.S. military supply chain is ill-prepared for contemporary conflict, according to Fortune. Fortune cited the U.S. use of about 850 Tomahawk missiles over four weeks in the conflict with Iran as an example, with the Washington Post reporting the missile use and CBS News reporting that the Pentagon had been replacing the weapons at about 90 a year.
AI and space systems add pressure
The debate also covered emerging risks in software and artificial intelligence. Fortune reported that President Trump signed an executive order last week creating a voluntary process for the federal government to review national security risks from advanced AI systems for up to a month before public release.
That planned AI cybersecurity approach followed Anthropic’s April announcement of Claude Mythos, an advanced model the company said was too powerful to release at that time, according to Fortune. Fortune reported that Anthropic had been testing the model with private companies and released a “safe” version of Mythos on Tuesday.
Madigan-Curtis also cited new activity in space-based weapons, according to Fortune. He pointed to True Anomaly, a startup he said is developing a “constellation of attack satellites” for the U.S. Space Force.
Garrity said artificial intelligence could help the military better measure production and readiness, according to Fortune. He said advances in AI, sensing and data now make it possible to connect inputs and outputs in ways that could change defense supply chain management.
The panelists’ broader message was that Washington cannot rely only on traditional procurement systems if it wants to keep pace with China, according to Fortune. They said the U.S. will need to modernize how it buys, tests and scales new technology while drawing more heavily on private-sector innovation.
This story draws on original reporting from Fortune.