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Speaker 1: Latest interview of Elon Musk. If you like this episode,

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just like Sharreon, follow this podcast.

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Speaker 2: Thank you. Back to the show. All right, welcome to Starbase, Texas.

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This is a city.

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Speaker 3: It's actually legally a city that, thanks to the hard

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work of the SpaceX team, we built out of nothing

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and is now a gigantic rocket manufacturing system.

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Speaker 4: And for people out.

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Speaker 2: There who are curious to see it, we're actually in

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a public highway so you can come and visit and

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drive down the road and see the epic hardware. So

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I think this is the first time that a rocket

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development program has actually been on a public highway, so

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you can come and see the epic stuff.

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Speaker 4: We're on it today.

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Speaker 2: To have a sectary of Pete Hexa and much of

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the senior leadership of the Pentagon here, it's an honor

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to have them visit. We just did a tour of

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the factory, and I think this it really helps illustrate

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how manufacturing and manufacturing at scale is critical to the

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strength of America.

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Speaker 3: And I'll tell you a little bit just about the

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purpose of SpaceX.

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Speaker 2: It's like, we want to make star Trek real, Okay,

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we want to make Starfleet Academy real so that it's

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not always science fiction, but one day the science fiction

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turns to science fact, and we have spaceships going through space,

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big spaceships with people going to other planets, going to

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the Moon, and ultimately going beyond our star system to

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other star systems where we may meet aliens or discover

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long dad alien civilizations. I don't know, but we want

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to go and we want to see what's happening, and

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we want to have epic futuristic spaceships with lots of

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people in them, traveling to places we've never been to before.

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Speaker 4: Yeah, that's that's.

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Speaker 2: The goal, and that's what I think the public thinks

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of when they think of Space Force. So on that note,

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I'd like to introduce the Secretary of Ward he Hexap.

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Speaker 1: Thank you, you know, I'm spreciate, thank you very much.

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Speaker 4: How about this Star Trek real star trucks. Yes, appreciate it.

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I love it.

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Speaker 1: Well, what a tour, What an opportunity to be here

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at Star Base, Texas with Elon and the SpaceX team.

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There's nothing like this in America. There's nothing like this

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in the world. And what you have built and what

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you will build here is a testament to the strength

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of American ingenuity and American invention. So I want to

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thank all of you, all the folks out here for

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having us today. Elon, thank you so much for hosting us,

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for what you've built, for the vision you have for

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this company, the vision you have for our country, the

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vision you have for American innovation.

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Speaker 4: I could not think of a.

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Speaker 1: More fitting venue to continue our arsenal a freedom tour

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and to outline today the future of technological innovation at.

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Speaker 4: The War Department. Those of you here at SpaceX will

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appreciate this.

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Speaker 1: Knowing that as World War II was ending, the Secretary

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of War and Secretary of the Navy wrote to the

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National Academy of Sciences and declared that scientific research was

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essential to our national security to ensure continued preparedness.

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Speaker 4: They wrote, the research.

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Speaker 1: Scientists of the United States must be called upon to

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continue in peacetime some substantial portion that of which they

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have made so effectively during the stress of the present war.

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The competitive time element in developing those weapons and tactics

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may be decisive in future conflicts. You see, those Secretaries

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of War and Navy many decades ago recognize the importance

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that innovation and readiness holds for our national security.

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Speaker 4: They knew what was at stake, the very freedoms of

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the country we hold dear all across the United States.

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Speaker 1: Today, extraordinary innovation is unlocking news abilities for freedom, prosperity,

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and security. Now, the question before us is not whether

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or not the most powerful technologies of the century will

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reinforce free societies. Is it going to reinforce our free societies?

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Or will that technology be shaped and twisted by malign

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regimes that seek to use those technologies for control and coercion.

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You see, over the past several months, I've talked at

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length about the challenges we face.

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Speaker 4: In transforming the War Department to.

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Speaker 1: Address current and future missions, all in service of meeting

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the deeds of the twenty first century warfire. I'd like

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to think we've already made dramatic progress in the Pentagon's

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culture by reviving the warrior ethos, and we're moving out

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quickly and transforming our acquisition ecosystem as well.

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Speaker 4: But today is.

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Speaker 1: About how we supercharge innovation at the word of Department

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for the era ahead.

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Speaker 4: Innovation is happening at a pace.

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Speaker 1: We can't even foresee, and we need the entire enterprise

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our enterprise to embrace the urgency required for this moment.

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Since the end of the Cold War, the defense industrial

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base in our country has consolidated. This makes it difficult,

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if not impossible, for new creators of technical innovations to

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win business at our department. The result is a risk

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averse culture that prevents us from providing our warfighters with

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the best resources that America has to offer.

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Speaker 4: That ends today. Simply put, the United.

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Speaker 1: States must win the strategic competition for twenty first century

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technological supremacy, artificial intelligence, autonomous systems, quantum hypersonics, and long

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range drones.

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Speaker 4: If you talk to Elon Musk long enough, he will

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tell you.

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Speaker 1: How important hypersonics and long range drones are.

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Speaker 4: Needs one hundred percent correct.

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Speaker 1: Space capabilities, directed energy, and biotechnology.

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Speaker 4: Are the new areas of global competition.

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Speaker 1: The challenge is that our legacy approach to technological development

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assumes that technology moves in a predictable linear conveyor belt

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from lab to design to development to prototype to test

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and qualify a program of record, and can only be

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provided by a handful of companies that have consolidated dramatically.

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Speaker 4: Now, while this system provided us with the weapons.

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Speaker 1: That won the Cold War. It is archaic and inconsistent

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with the novel threat environment that we face today.

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Speaker 4: At its core, this old approach has.

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Speaker 1: The hubrist to assume that you can easily predict the future,

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that you can foresee how an invention becomes a weapon

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in eight easy steps, three decades from first discovery. Our

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system can not keep treating innovation as a decades long

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one way march that dramatically reduces who and what is

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able to run the gauntlet at our department to get.

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Speaker 4: The capability to the warfire.

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Speaker 1: Until this administration, the Trump administration, the department's process for

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fielding new capabilities had become just one more post Cold

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War peace dividend relic that has not kept up with

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the times. Worse than that, we've done nothing but add

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layer upon layer of committees and councils that coordinated but

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never decided. We created endless projects with no accountable owners.

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Speaker 4: We have high churn with.

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Speaker 1: Little progress and few outputs. That sounds about like the

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exact opposite of SpaceX. We treated innovation as a box

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to check, not an outcome to deliver. In short, when

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it comes to our current threat environment, we are playing

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a danger escape with potentially fatal consequences. We need innovation

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to come from anywhere and evolve with speed and purpose.

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You see, America's open scientific community is an advantage authoritarian

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regimes cannot replicate. They can read our scientific papers and

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copy our invention or distill.

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Speaker 4: Our al Ai.

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Speaker 1: Models, but they cannot replicate a culture like this, one

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of opened and distributed research.

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Speaker 4: We need to be blunt here.

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Speaker 1: We can no longer afford to wait a decade for

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our legacy prime contractors to deliver the next perfect system,

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only to find that it's delivered years behind schedule and cost.

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Speaker 4: Ten times what it should. Winning requires a new playbook.

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Speaker 1: Elon wrote it with his algorithm question every requirement, Delete

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the dumb ones, and accelerate like hell. That's why I

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want to make clear across the War Department and for

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our partners in the private sector, that our Undersecretary of

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War for Research and Engineering, Emil Michael, right here in

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the front row is the War Department's single Chief Technology

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Officer one CTO for the entire enterprise.

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Speaker 4: Novel concept.

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Speaker 1: As the sole CTO, E Meal will set the technical direction,

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lead the innovation ecosystem that will welcome progress from anywhere

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it resides, and he'll tell me face to face every

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day and frankly, whether we are gaining or losing the

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technology and innovation competition.

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Speaker 4: He'll have the decision authority and will lead through.

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Speaker 1: Rigorous evaluation with a focus on real, measurable outcomes.

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Speaker 4: Now, Congress, and we have a member many members of

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Congress with us here today, will be our partner in this.

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Speaker 1: By affirming the under Secretary's role as the department's CTO,

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we're carrying out the core mission for that Congress assigned

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in statute.

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Speaker 4: The last Defense Bill.

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Speaker 1: Expanded the CTO's authorities, including the power to direct military

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departments and other components to align around clear innovative outcomes.

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We will use them to deliver those outcomes.

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Speaker 4: With speed and urgency.

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Speaker 1: An empowered CTO will inject a disruptive mindset directly into

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our systems, directing the power of America's world leading scientists

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and entrepreneurs, our cutting edge labs, the tech ecosystem, and

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our capital markets to build what the warfighter needs, but

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to do so better, faster and cheaper.

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Speaker 4: And Emil is the right man to do it. You see,

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this isn't about military structure. This is about building an

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innovation pipeline that.

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Speaker 1: Cuts through the overgrown bureaucratic underbrush and clears away the

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debris elon.

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Speaker 4: Style, preferably with a chainsaw, and to do so at

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speed and urgency that meets the moment.

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Speaker 1: As I've said repeatedly to every audience, the President of

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the United States and I have the backs of our

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warfighters who have to make split second life and death

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decisions on the battlefield. And I want this audience to

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know that we also have the backs of innovators who

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share that very same urgency. American taxpayers, especially those parents

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whose sons and daughters have answered the call to serve

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I swore in ten more today demand, and I demand,

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and we demand that we arm our warfighters with overwhelming

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and lethal technology right now, not a decade from now.

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Speaker 4: In modern warfare, the fastest.

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Speaker 1: Innovator and iterator will be the winner, and no one

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can out innovate an American entrepreneur who has been liberated

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from the constrains of stifling bureaucracy.

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Speaker 4: That old era ends today.

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Speaker 1: We are done running a peacetime science fair while our

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potential adversaries are running a wartime arms race.

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Speaker 4: Right now.

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Speaker 1: From garage startups to factory floors to boardrooms across our nation.

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The question of how to harness innovation coming out of America's.

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Speaker 4: AI ecosystem is front and center, and rightfully.

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Speaker 1: So, because it has the potential to disrupt and transform

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every area of human endeavor. The same is true in

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the Department of War. President Trump's AI Executive Order spells

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out our approach succinctly. It is the policy of the

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United States to sustain and enhance America's global AI dominance

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in defense of human flourishing, economic competitiveness, and national security. That,

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ladies and gentlemen, is the War Department's mission.

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Speaker 4: We must ensure that America's.

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Speaker 1: Military AI dominance so that no adversary can exploit that

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same technology to hold our national security interests for our

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citizens at risk. America first in every domain. Last month,

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I took.

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Speaker 4: The first step toward changing how the.

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Speaker 1: Department does business with frontier AI technologies when we announce

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the rollout of Genai with our partners from Google, and

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I want to thank the Google team for leaning forward

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and making the investment to get their Gemini app to

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about three million.

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Speaker 4: Users in the War Department.

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Speaker 1: But today we're excited to announce the next frontier AI

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model company to join genai dot MIL and that is

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GROC from Xai, which will go live later this month.

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So I want to thank you Elon and your incredible

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team for leaning forward with us on as well.

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Speaker 4: Very soon we will have the world's leading.

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Speaker 1: AI models on every unclassified and classified network throughout our department.

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Long overdue to further that, Today, at my direction, we're

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executing an AI acceleration strategy that will extend our lead

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in military AI established.

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Speaker 4: During President Trump's first term.

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Speaker 1: This strategy will unleash experimentation, eliminate bureaucratic barriers, focus on investments,

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and demonstrate the execution approach needed to ensure we lead

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in military AI and that it grows more dominant.

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Speaker 4: Into the future. In short, we will win this race

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by becoming an.

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Speaker 1: AI first war fighting force across all domains, from the

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back offices of the Pentagon to the tactical edge on

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the front line. The catalyst for this acceleration will be

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seven pace setting projects focused on mission.

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Speaker 4: Threads across war fighting, intelligence.

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Speaker 1: And enterprise missions, each with a single accountable leader, aggressive timelines,

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and measurable outcomes that answer a familiar question, Elon, what

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have you accomplished this week. This is the execution standard

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for AI first transformation. Each of the seven pace setting

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projects will use the following model, one owner who reports

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monthly on their progress.

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Speaker 4: These projects will not be run.

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Speaker 1: In a vacuum, but will work directly with warfighters and

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transition partners to ensure we incorporate real time operational feedback.

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We expect rapid iterations with failure accelerating the learning curve.

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These are not science projects, They are not governance boards.

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Speaker 4: They are the execution standard for the entire department.

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Speaker 1: We will not win the future by sprinkling AI onto

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old tactics.

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Speaker 4: Like digital pixie dust. We will win by discovering entirely

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new ways of fighting.

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Speaker 1: That's why we will run continuous experimentation campaigns, quarterly force

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unforced combat labs with AI coordinated swarms, agent based cyber defense,

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and distributed command and control, pushing the envelope learning from

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failure at every stop, which is exactly what this place does.

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You see, our department doesn't accept failure in the past,

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and so we never fail, which means we never learn.

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We're flipping that dynamic. Before talking about the new rules

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of the game, let me talk about a little bit

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more about our new team, because no game can be won.

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Speaker 4: Without the right team, and we're proud to announce that

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mister Cameron Stanley has been.

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Speaker 1: Appointed the new Chief Digital and Artificial Intelligence Officer CEAO

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of our War Department. CAM will be leading a new team,

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many of whom have forgone, thank you, or left lucrative

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careers at pioneer companies such as AWS, Data, Bricks, Palenteered

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Meta to join the fight.

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Speaker 4: This team will not only.

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Speaker 1: Provide a catalyst for change in this department, but will

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also act, we believe, as a.

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Speaker 4: Magnet for other talented members of the.

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Speaker 1: Tech community who want to join us in doing the

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mission focused work to protect our great Republic.

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Speaker 4: So let's talk about the new rules.

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Speaker 1: First, Speed, speed wins, speed dominates.

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Speaker 4: Our enterprise currently.

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Speaker 1: Operates on staffing and committee cycles measured in months and years,

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and that's unacceptable.

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Speaker 4: Military AI is going to be a race for the

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foreseeable future where the risks.

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Speaker 1: To US national security of moving too slowly outweigh the

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impacts of imperfect alignment. To do this, Cam and his

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team at CDAO will define AI deployment velocity metrics for

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all the pace setting projects in the next thirty days

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and report at least monthly after that. These will become

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the new benchmarks for programs across the department.

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Speaker 4: Second, bureaucratic blockers. If you work with Elon, you know

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he finds the blockers and you remove them.

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Speaker 1: We will take a wartime approach to people and policies

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that block this progress.

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Speaker 4: You want to block to work somewhere else.

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Speaker 1: Barriers to data sharing, authority to operate or ato's test

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and evaluation, and contracting are now treated as operational risks,

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not simply bureaucratic inconveniences.

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Speaker 4: We are blowing up these barriers. That's why today, at

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my direction, I'm.

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Speaker 1: Establishing a barrier removal SWAT team under RNE with the

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authority to waive non statutory requirements and escalate to our

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great Deputy Secretary Steve Feinberg, anything that slows down the

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acceleration of AI capabilities.

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Speaker 4: Third compute resource.

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Speaker 1: We will invest heavily in expanding our access to AI

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compute from data centers to the tactical edge, and will

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tap into hundreds of billions of dollars in private.

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Speaker 4: Capital flowing into American AI.

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Speaker 1: President Trump's executive order has directed us to build data

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centers on military land and to work with the Department

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of Energy to ensure that we dramatically increase the number

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and breadth of resources needed to power this computing infrastructure.

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We will work together with our partners at Google and

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AWS and Oracle and SpaceX, Microsoft and others on these initiatives.

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Speaker 4: Fourth pillar, especially in this room, you'll understand it is talent.

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Speaker 1: We will use every hiring and pay authority available to

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us to bring the best American technical talent and reward

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effective AI train informations by our workforce.

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Speaker 4: We're going to.

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Speaker 1: Heavily leverage President Trump's Tech Force initiative to bring in

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the best and brightest from industry and academia, with people

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like Elon David Sachs, Emil Mike and others from the

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entrepreneurial and business world already in government, we have shown

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that we can and that we must enlist the world's

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leading talent in this cause. Fifth Responsible AI. Today, I

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want to clarify what responsible AI means at the Department

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of War. Gone are the days of equitable AI and

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other DEI and social justice infusions that constrain and confuse

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our employment.

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Speaker 4: Of this technology.

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Speaker 1: Effective immediately responsible AI at the War Department means objectively

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truthful AI capabilities employed securely and within the laws governing

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the activities of the Department.

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Speaker 4: We will not employ AI models that won't allow you

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to fight wars.

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Speaker 1: We will judge AI models on this standard alone, factually accurate,

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mission relevant, without ideological constraints that limit lawful military applications.

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Department of War AI will not be woke. It will

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work for US. We're building war ready weapons and systems,

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not chatbots for an Ivy League faculty Lounge six. And finally,

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data AI is only as good as the data that

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feeds it, and the US military has an asymmetric data

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advantage from two decades of military and intelligence operations that

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no other military in the world can replicate. But right

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now we are under utilizing this advantage. Too much of

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our data is stranded. It's stuck in bespoke program databases,

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locked behind Title ten or two, Title fifty stove pipes,

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invisible to operators, engineers, and industry who could help us

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exploit it with winning speed and scale. And that's why today,

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at my direction, CDO will exercise its full authority to

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enforce the DOW Data Decrees and make all appropriate data

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available across federated IT systems for AI exploitation, including mission

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systems across every service and component. Each service secretary and

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component head will submit catalogs of their current data assets.

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Speaker 4: To the CDO within thirty days.

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Speaker 1: Denials of data access request will be reported to the

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CTO within seven.

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Speaker 4: Days, and they better have a good justification today.

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Speaker 1: I'm also directing the Undersecretary for Intelligence and Security, Brad Hansel,

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to ensure appropriate data from across our intelligence enterprise receives

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the same treatment and can be fully levered to war

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fighting capability, development and operational advantage. AI is only as

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good as the data that it receives, and we're going

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to make sure that it's there. Persistent barriers to data

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access will be escalated to the Deputy Secretary of War

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for resolution with authority to reassign or terminate personnel or

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withhold funding from non compliant activities within the statutory limits.

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Speaker 4: We'll be clear here.

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Speaker 1: As I said, data hoarding is now a national security risk,

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and we will treat it that way.

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Speaker 4: AI is an important part of the future.

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Speaker 1: But here's another truth that we've ignored for too long.

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Beyond AI, we've treated every other kind of innovation as if.

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Speaker 4: They're the same as you know they're not.

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Speaker 1: We need to break down unnecessary barriers to rapid technological development, adoption,

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and transition. Some of you will remember this a generation

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to Goo. One of my predecessors, in a dinner speech

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to industry, now infamously known as the Last Supper, advocated

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for the consolidation of our defense industrial base. This consolidation

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created a closed innovation ecosystem dominated by just a handful

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of prime contractors. The results have been characterized by soaring costs,

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sluggish delivery, and stagnant innovation. That's what President Trump's recent

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Executive Order on the Defense Industrial Base and Defense Companies

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seeks to address.

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Speaker 4: It makes crystal clear.

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Speaker 1: That the priority of the legacy prime contractors must be

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our nation's national security, not the next earnings call. That

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means less focus on stock buybacks and more investment on

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the men and women on the factory floor.

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Speaker 4: It means less stockholder.

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Speaker 1: Dividends and more investment in infrastructure, plant and equipment. Today,

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that old era comes to an end.

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Speaker 4: The Department of.

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Speaker 1: War is reopening to the disruptive energy and agile creativity

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of our nation's tech startups. Funded by our world's leading

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capital markets. I'm directing my chief Technology officer to leave

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this charge and his wingman, as always in this effort

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under Secretary for Acquisitions and Sustatement Mike Duffie. For too

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long we organized our ecosystem around stages and silos, labs

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over here, so called rapid units over there, commercial outreach

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in a different building or on another coast altogether, and

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warfare fighters somewhere.

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Speaker 4: At the end, almost an afterthought.

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Speaker 1: The result is duplication, drift, and confusion. And like the

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acquisition process, we are already fixing the creation of organizations

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to work around the problems in the innovation ecosystem. Rather

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than taking the buld steps needed to transform it, we

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created an old ecosystem to get around the actual system.

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No more, every dollar of innovation, whether it may be

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in a lab or a startup or a classified shop,

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must exist to deliver one of three things game changing technology,

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scalable products.

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Speaker 4: Or new ways of fighting. If it's not doing one.

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Speaker 1: Of those three things at speed, it will be realigned or.

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Speaker 4: It will go away. And that's why I'm entrusting Emil

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as the.

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Speaker 1: CTO to ensure that this directive across the department is

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rapidly carried out.

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Speaker 4: Amelia are going to be busy again.

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Speaker 1: What we're talking about today is a transformation and the

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way we think about innovation. In Requirements Reform, led by

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Mike Duffy, we killed an old, a sclerotic model and

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rewire the departments that problems, money and experimentation live in

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one system. In Acquisitions Reform, we killed the defense acquisition

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system and created accountable portfolio acquisition executives, making speed to delivery.

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Speed to delivery our organizing principle. We're going to do

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the same for technological innovation. That's why today, at my direction,

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we are ending the alphabet soup of councils that meet

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and brief and write memos and schedule meetings, but never

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decide and rarely, if ever accelerate outcomes. Effective Immediately, the

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Defense Innovation Steering Group, the Defense Innovation Working Group, and

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the CTO Council are.

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Speaker 4: Disestablished and abolished.

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Speaker 1: In their place, the CTO will convene a CTO Action

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Group to assist him in making decisions, clearing bureaucratic blockers,

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holding leaders accountable, and most importantly, quickly delivering new.

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Speaker 4: Technologies to our war fires.

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Speaker 1: Every organization in this ecosystem must earn its place by

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delivering war fighting advantages faster than our adversaries can adapt.

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No sacred cows, no exceptions.

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Speaker 4: To back up the CTO.

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Speaker 1: Today, in my direction, we are realigning two pillars of

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the War Department's innovation ecosystem.

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Speaker 4: First, the Defense.

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Speaker 1: Innovation Unit ORDIU. Since its establishment ten years ago, DIIU

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has lived through shifting reporting structures and uneven administrative support, doing.

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Speaker 4: Great things, but at times it's the.

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Speaker 1: Portfolio overlap with other parts of the department. Effective today,

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DIIU is designated a Department of War Field Activity, providing

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exceptional tech scouting RAP. I've been contracting in other common

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services to the department, executed at commercial tempo.

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Speaker 4: The CTO will provide support to DIIU.

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Speaker 1: For administrative and resource matters and ensure that the unit's

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efforts fit into the Department's innovation priorities. The Director of

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DIIU will also continue to report directly to me as

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a principal staff assistant and carry out its statutory duties.

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And I'm appointing mister Owen West, executor of my Drone

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Dominance Initiative, as the Director of DIIU starting in March

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when the Fight twenty seven budget cycle firms up. As

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a marine with lots of combat experience, Owen will bring

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a warfighter's mentality to diiu's core mission of transitioning technology

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to our troops.

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Speaker 4: Owen also has the private capital.

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Speaker 1: Experience needed to ensure DIIU remains working hand in glove

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with the venture and investor community and continues to OnRamp

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new entrants into the war Department. Owen led doge at

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DOW the most effective Doze effort across the administration, saving

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tens of billions of dollars for our department, and now

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he will lead DIIU. Our world leading defense tech startups

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have attracted billions of dollars in capital that are reshaping

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warfare through the proliferation of high tech, low cost technologies.

479
00:31:28,119 --> 00:31:31,920
Diiu's mission is to accelerate the adoption of this commercial

480
00:31:31,920 --> 00:31:39,799
technology to help convert entrepreneurial products into tangible combat power. Second,

481
00:31:40,640 --> 00:31:45,640
the Strategic Capabilities Officer SCO is also being designated a

482
00:31:45,720 --> 00:31:50,240
Department of war Field Activity aligned under the CTO. Skull

483
00:31:50,279 --> 00:31:53,559
will maintain focus on its core mission of identifying and

484
00:31:53,720 --> 00:31:56,319
prototyping disruptive applications of.

485
00:31:56,319 --> 00:31:57,559
Speaker 4: New systems, the.

486
00:31:57,559 --> 00:32:02,000
Speaker 1: Unconventional uses of existing systems and near term technologies to

487
00:32:02,079 --> 00:32:07,640
create strategic effects. SCOLL will continue to maintain its statutory

488
00:32:07,720 --> 00:32:11,440
direct reporting relationship to the Deputy Secretary, but will be

489
00:32:11,559 --> 00:32:16,480
operationally re aligned under the CTO to eliminate duplication and

490
00:32:16,680 --> 00:32:22,039
ensure the relentless daily focus on delivering near and medium

491
00:32:22,119 --> 00:32:24,079
term capabilities.

492
00:32:23,519 --> 00:32:25,759
Speaker 4: To our warfighters.

493
00:32:26,480 --> 00:32:33,359
Speaker 1: Relentless urgency and focus is our focus. Today's defense innovation

494
00:32:33,519 --> 00:32:38,359
ecosystem is too fragmented, resulted in insufficient technology transition to

495
00:32:38,400 --> 00:32:41,640
the warfighter. We address some of this in the transformation we.

496
00:32:41,599 --> 00:32:43,839
Speaker 4: Are making in the acquisition's.

497
00:32:43,480 --> 00:32:47,480
Speaker 1: Ecosystem, but it also needs to enter the innovation ecosystem

498
00:32:48,279 --> 00:32:50,160
for too long, and I know a lot of you

499
00:32:50,160 --> 00:32:52,279
have experienced this and others we met with in Los

500
00:32:52,319 --> 00:32:57,720
Angeles recently. The experience of founders and entrepreneurs has been

501
00:32:57,799 --> 00:33:01,480
running endless laps around the Pentagon looking.

502
00:33:01,240 --> 00:33:04,799
Speaker 4: For the right office, the right program, and the right

503
00:33:04,880 --> 00:33:05,880
motivated sponsor.

504
00:33:06,880 --> 00:33:10,759
Speaker 1: And too often new entrants are ultimately stymied by the bureaucracy.

505
00:33:10,759 --> 00:33:11,960
Speaker 4: We hear at time.

506
00:33:11,720 --> 00:33:13,519
Speaker 1: And time again they don't know where to go, and

507
00:33:13,519 --> 00:33:14,920
then when they go to that place, it's not the

508
00:33:15,000 --> 00:33:15,759
right place to go.

509
00:33:16,039 --> 00:33:17,680
Speaker 4: Then they go somewhere else it didn't want them in

510
00:33:17,720 --> 00:33:19,559
the first place, and the lap continues.

511
00:33:21,039 --> 00:33:25,640
Speaker 1: For example, SpaceX and Pallenteer had to sue the Department

512
00:33:25,640 --> 00:33:28,759
of War just to get a shot at competing for

513
00:33:29,000 --> 00:33:33,480
Department contracts. The bottom line is that new entrants need

514
00:33:33,559 --> 00:33:38,200
both a shot on goal, but also faster yeses and

515
00:33:38,279 --> 00:33:41,440
faster knows from the Department, rather than being strung along

516
00:33:42,079 --> 00:33:47,799
with a never ending stream of rudderless maidens. At the

517
00:33:47,839 --> 00:33:51,359
Secretary of War level, we will replace the existing maze

518
00:33:51,759 --> 00:33:57,759
into two clear channels. The Mission Engineering and Integration Activity

519
00:33:58,680 --> 00:34:02,039
MIA will tell enddustry what problems we're trying to solve,

520
00:34:03,079 --> 00:34:06,839
and DIIU will help program offices adopt what industry has

521
00:34:06,920 --> 00:34:11,599
already built. This will help get the faster yeses or

522
00:34:11,679 --> 00:34:13,000
faster nos.

523
00:34:12,960 --> 00:34:17,079
Speaker 4: Clear guidance, clear guide rails, clear.

524
00:34:17,199 --> 00:34:22,079
Speaker 1: Demand signal, which is what industry and capital expects. Now,

525
00:34:22,119 --> 00:34:24,639
this isn't just an Office of the Secretary reform.

526
00:34:25,360 --> 00:34:27,519
Speaker 4: The services need to transform.

527
00:34:27,159 --> 00:34:30,880
Speaker 1: Their innovation ecosystems as well. The Army, the Navy, the

528
00:34:30,920 --> 00:34:34,679
Space Force, the Marine Corps, and the Air Force. That's

529
00:34:34,679 --> 00:34:37,599
why today at my direction, our military services will take

530
00:34:37,639 --> 00:34:41,440
the following actions within ninety days. The Secretaries of the

531
00:34:41,440 --> 00:34:45,719
Military departments will brief the CTO on service innovation plans,

532
00:34:45,760 --> 00:34:51,119
how they will consolidate, streamline, and refocus their labs, research expertise,

533
00:34:51,199 --> 00:34:57,199
experimental units and rapid capability offices around three innovation outcomes.

534
00:34:58,320 --> 00:35:02,760
Our sixty plus lab are a national asset, but it's

535
00:35:02,800 --> 00:35:06,719
pastime they were organized to deliver and not just to discover.

536
00:35:08,119 --> 00:35:10,559
And beginning with the fiscal year twenty twenty eight budget,

537
00:35:10,599 --> 00:35:17,039
every portfolio acquisition executive will fund an Innovation Insertion Increment

538
00:35:17,559 --> 00:35:21,719
Triple I dedicated money for the last mile integration test

539
00:35:21,760 --> 00:35:27,519
and rapid insertion of validation solutions into fielded systems. Innovation

540
00:35:27,719 --> 00:35:31,000
cannot be centralized, and it should not be.

541
00:35:32,559 --> 00:35:35,599
Speaker 4: In fact, I hope it's okay I name him.

542
00:35:36,079 --> 00:35:38,599
Speaker 1: But just this pack weekend I received an email a

543
00:35:38,639 --> 00:35:41,360
proposal from an Army captain named Drennan Green who I've

544
00:35:41,360 --> 00:35:44,079
known him for a while. He had a detailed plan

545
00:35:44,119 --> 00:35:49,280
about how he and his unit wants to deploy AI innovation.

546
00:35:49,480 --> 00:35:54,400
Candid should come from anywhere and anyone wherever.

547
00:35:54,039 --> 00:35:55,960
Speaker 4: Those best ideas reside.

548
00:35:55,960 --> 00:35:58,360
Speaker 1: We're going to bring that good captain in and hear

549
00:35:58,400 --> 00:36:01,400
from them, how can we apply those tools in his

550
00:36:01,679 --> 00:36:06,840
unit and other units bottom up, not just top down.

551
00:36:08,519 --> 00:36:12,199
The military services and program officers own the last mile,

552
00:36:12,840 --> 00:36:15,239
and to that end, I'm directing the services to establish

553
00:36:15,360 --> 00:36:20,000
that Triple I Innovation insertion increment within the budgets of.

554
00:36:20,039 --> 00:36:23,719
Speaker 4: All program portfolios. This will ensure that.

555
00:36:23,679 --> 00:36:28,199
Speaker 1: They have funds set aside to quickly integrate innovations during

556
00:36:28,239 --> 00:36:32,000
weapons system development and so be a tool to free

557
00:36:32,199 --> 00:36:36,320
new innovative, cutting edge weapons and improvements from the constraints

558
00:36:36,320 --> 00:36:41,239
of yearly budget cycles. Here you iterate in terms of

559
00:36:41,440 --> 00:36:43,440
hours and days, maybe weeks.

560
00:36:43,960 --> 00:36:44,920
Speaker 4: In Washington we.

561
00:36:44,960 --> 00:36:49,320
Speaker 1: Talk in terms of months, years, and oftentimes multi years.

562
00:36:49,559 --> 00:36:53,599
Speaker 4: It's too slow. The CTO ecosystem will give them.

563
00:36:53,639 --> 00:36:58,400
Speaker 1: The supply services are contributors to this ecosystem.

564
00:36:57,400 --> 00:36:58,360
Speaker 4: Not bystanders.

565
00:36:58,760 --> 00:37:03,800
Speaker 1: They must deliver outcome, and they must deliver overmatch. And

566
00:37:03,840 --> 00:37:06,519
speaking of budgets and budget cycles, you may have seen

567
00:37:06,920 --> 00:37:11,480
President Trump's truth posts of a few days ago. He's

568
00:37:11,519 --> 00:37:16,119
proposing a one point five trillion dollar budget for.

569
00:37:16,039 --> 00:37:19,159
Speaker 4: The War Department in fiscal year twenty seven. This is

570
00:37:19,239 --> 00:37:23,960
by far the most ever in our history, a historic.

571
00:37:24,320 --> 00:37:27,719
Speaker 1: And generational investment in American security.

572
00:37:28,000 --> 00:37:32,639
Speaker 4: We will not squander this once in a lifetime opportunity.

573
00:37:32,000 --> 00:37:36,039
Speaker 1: To rebuild our military. Think of what this means as

574
00:37:36,079 --> 00:37:39,599
our efforts to transform the department come fully online.

575
00:37:39,719 --> 00:37:42,679
Speaker 4: You add resources, and you streamline.

576
00:37:42,159 --> 00:37:45,599
Speaker 1: Process speed to deliver those capabilities to the warfighter.

577
00:37:45,840 --> 00:37:49,039
Speaker 4: And invitation to new entrants.

578
00:37:48,239 --> 00:37:51,599
Speaker 1: Into the defense industry, which we need so badly, and

579
00:37:51,639 --> 00:37:52,639
an embrace.

580
00:37:52,320 --> 00:37:55,039
Speaker 4: Of AI and other cutting edge defense tech.

581
00:37:55,960 --> 00:37:59,320
Speaker 1: All of this will make our forces more agile, more lethal,

582
00:37:59,800 --> 00:38:04,320
and more ready to deter and if necessary, win a

583
00:38:04,360 --> 00:38:09,119
future fight. This is what President Trump demands, and this

584
00:38:09,239 --> 00:38:14,239
is what we will deliver. This feeds into a next

585
00:38:14,400 --> 00:38:17,880
area we need to fix. You see, reorganizing and a

586
00:38:17,920 --> 00:38:21,039
new attitude are not enough to truly unlock innovation for

587
00:38:21,159 --> 00:38:21,840
the warfighter.

588
00:38:22,559 --> 00:38:23,639
Speaker 4: Our department needs to.

589
00:38:23,559 --> 00:38:25,360
Speaker 1: Capitalize on a key advantage.

590
00:38:25,400 --> 00:38:28,519
Speaker 4: America has over her adversaries.

591
00:38:28,000 --> 00:38:32,159
Speaker 1: The broadest and deepest capital markets and the best entrepreneurial

592
00:38:32,280 --> 00:38:36,599
talent in the world. You know this capital is the

593
00:38:36,599 --> 00:38:40,920
lifeblood of American innovation, and therefore, to be successful, we

594
00:38:41,000 --> 00:38:45,239
need to embrace the role in our department of private capital,

595
00:38:45,280 --> 00:38:48,119
which we have not done for far too long. We

596
00:38:48,159 --> 00:38:50,800
need to be a better partner for private capital so

597
00:38:50,840 --> 00:38:54,119
we can help accelerate capital formation in key areas and

598
00:38:54,280 --> 00:38:58,199
lower the risk for the Department. Private capital is already

599
00:38:58,239 --> 00:39:00,920
helping solve a major problem that President Trump has directed

600
00:39:00,960 --> 00:39:05,920
us to confront and solve across this administration, ending our

601
00:39:05,960 --> 00:39:10,719
reliance on competitors for access to rare earth and critical minerals.

602
00:39:11,800 --> 00:39:15,760
The Office of Strategic Capital or OSC, under the leadership

603
00:39:16,039 --> 00:39:20,480
of David Lorich, is spearheading those efforts and delivering as

604
00:39:20,599 --> 00:39:24,639
we speak. In the past five months alone, the OSC

605
00:39:24,800 --> 00:39:27,519
team has deployed over four point five billion dollars in

606
00:39:27,559 --> 00:39:31,840
capital commitments as part of closing six critical mineral deals,

607
00:39:32,440 --> 00:39:35,840
all of which will help free the United States from

608
00:39:36,119 --> 00:39:42,519
market manipulation. Crucially, OSC's strategy relies on crowding in private

609
00:39:42,559 --> 00:39:47,000
sector investors from this VC community to our country's largest

610
00:39:47,039 --> 00:39:51,599
financial institutions. The six OSC deals to date include nearly

611
00:39:51,639 --> 00:39:56,199
five billion from our private capital partners. OSC has closed

612
00:39:56,239 --> 00:40:00,599
most of those deals in less than thirty days, which

613
00:40:00,639 --> 00:40:05,920
is Trump time for complex transactions that may seem maybe

614
00:40:06,039 --> 00:40:10,159
slow for SpaceX in Washington, that's as fast as it gets.

615
00:40:10,159 --> 00:40:12,280
Speaker 4: I mean, that is warp speed in Washington.

616
00:40:13,480 --> 00:40:18,400
Speaker 1: All of our investments serve one purpose, deliver.

617
00:40:18,719 --> 00:40:21,000
Speaker 4: Faster for the warfighter.

618
00:40:22,159 --> 00:40:25,199
Speaker 1: Now, some will want to cynically posit is this just

619
00:40:25,280 --> 00:40:30,599
another innovation reorganization, another set of strategies that brief well

620
00:40:30,679 --> 00:40:35,119
but don't actualize. No, this is the third leg of

621
00:40:35,159 --> 00:40:40,840
a single war plan. In fundamentally transforming our acquisition ecosystem,

622
00:40:41,239 --> 00:40:45,159
we killed jasids that focused only on process and turned

623
00:40:45,159 --> 00:40:48,159
the j ROCK into a body that ranks real world

624
00:40:48,320 --> 00:40:52,639
joint operational problems, not paper requirements. We created the MEA

625
00:40:53,039 --> 00:40:56,119
to run experimental experimentation.

626
00:40:55,480 --> 00:40:59,079
Speaker 4: Campaigns to solve these problems. We killed the.

627
00:40:59,000 --> 00:41:02,199
Speaker 1: Old defense equi position system and created the war fighting

628
00:41:02,519 --> 00:41:08,320
acquisition system to focus on speed, risk and accountability. With

629
00:41:08,400 --> 00:41:12,239
the AI strategy and innovation ecosystem transformation that we have

630
00:41:12,440 --> 00:41:17,119
just outlined, we are welding that third piece into place.

631
00:41:18,079 --> 00:41:20,079
Speaker 4: The CTO, DIU, SCO.

632
00:41:20,079 --> 00:41:24,280
Speaker 1: DARPA, CDO, and OSC are no longer a loose federation.

633
00:41:25,480 --> 00:41:28,920
They are the Office of the Secretary of War's Innovation

634
00:41:29,119 --> 00:41:34,039
Operating System. DARPA delivers game change in technology, innovation and

635
00:41:34,119 --> 00:41:39,960
strategic surprise. DIU delivers scalable products, SCO delivers new ways

636
00:41:40,000 --> 00:41:43,840
of fighting, and CDO and osc provide the data, test,

637
00:41:43,880 --> 00:41:44,800
and capital.

638
00:41:44,440 --> 00:41:46,639
Speaker 4: To move at wartime speed.

639
00:41:48,000 --> 00:41:52,199
Speaker 1: As of today, they are an ecosystem, an arsenal of

640
00:41:52,320 --> 00:41:57,920
ideas and action for the arsenal of freedom, wired directly

641
00:41:58,519 --> 00:42:05,360
into requirements, portfolio and production, game changing technology, scalable products,

642
00:42:05,840 --> 00:42:10,719
new ways of fighting, all three moving at wartime speed.

643
00:42:11,639 --> 00:42:17,320
Problems drive experimentation. Experimentation flows to prototypes. Prototypes flow to

644
00:42:17,360 --> 00:42:22,320
our program executives. Program executive flow, these to production, production

645
00:42:22,480 --> 00:42:27,239
flows to the warfighter, and the cycle never stops, always

646
00:42:27,320 --> 00:42:30,920
iterating one system, one purpose.

647
00:42:31,079 --> 00:42:32,719
Speaker 4: Speed to the fight.

648
00:42:33,960 --> 00:42:37,719
Speaker 1: We are preparing to win the future because we know,

649
00:42:38,400 --> 00:42:39,920
and you know, for the.

650
00:42:39,880 --> 00:42:44,800
Speaker 4: Free world, for the West, the stakes could not be higher.

651
00:42:46,599 --> 00:42:51,039
Speaker 1: Before this administration, our adversaries may have thought they've finally

652
00:42:51,360 --> 00:42:53,480
broke American power.

653
00:42:54,880 --> 00:42:55,400
Speaker 4: They're wrong.

654
00:42:56,840 --> 00:42:59,880
Speaker 1: They do not have our entrepreneurs. They do not have

655
00:43:00,000 --> 00:43:03,480
our capital markets. They do not have our combat proven

656
00:43:03,599 --> 00:43:08,039
operational data from two decades of military and intelligence operations.

657
00:43:08,519 --> 00:43:12,280
They do not have our hard won classified technologies. They

658
00:43:12,320 --> 00:43:16,079
do not have the ingenuity and tenacity of American war

659
00:43:16,199 --> 00:43:20,400
fighters who refuse to lose. They don't have a military

660
00:43:20,400 --> 00:43:23,880
that can go thirty seven hours to downtown Tehran or

661
00:43:24,079 --> 00:43:27,320
downtown Caracas without being seen in the process.

662
00:43:29,079 --> 00:43:30,599
Speaker 4: You see, but none of that.

663
00:43:30,559 --> 00:43:35,880
Speaker 1: Matters, however, if we suffocate those advantages under a stifling bureaucracy.

664
00:43:37,039 --> 00:43:40,519
That's why we're unifying the innovation ecosystem, making this an

665
00:43:40,559 --> 00:43:47,000
AI first department, and holding every lab, every program accountable,

666
00:43:47,599 --> 00:43:51,440
all while pushing every officer to liver war fighting advantages

667
00:43:52,039 --> 00:43:58,400
faster than others can adapt. We will not stop, We

668
00:43:58,440 --> 00:44:02,519
will not back down. We will george the new arsenal

669
00:44:02,880 --> 00:44:07,000
of freedom with our partners in industry, in the private sector.

670
00:44:07,920 --> 00:44:10,079
We believe the future will be shaped by those who

671
00:44:10,199 --> 00:44:12,440
lead in technology and innovation.

672
00:44:13,039 --> 00:44:13,760
Speaker 4: We don't believe.

673
00:44:13,800 --> 00:44:17,920
Speaker 1: We know, those who fervently believe in freedom and the

674
00:44:17,960 --> 00:44:23,559
Western tradition like we do, must be those leaders. If

675
00:44:23,639 --> 00:44:27,760
not us, if not America, if not the West, then who,

676
00:44:28,920 --> 00:44:32,760
And if not now, it will be too late to

677
00:44:32,880 --> 00:44:36,039
maintain that advantage. This is not reform for the sake

678
00:44:36,079 --> 00:44:37,280
of reform.

679
00:44:37,679 --> 00:44:38,599
Speaker 4: It never has been.

680
00:44:39,119 --> 00:44:42,400
Speaker 1: This is about whether our warriors fight with yesterday's tools

681
00:44:43,440 --> 00:44:47,559
or they fight overmatching our adversaries using tomorrow's technologies.

682
00:44:47,840 --> 00:44:51,679
Speaker 4: We know the threat, we know the opportunity, We know

683
00:44:51,840 --> 00:44:54,920
what must be done. We share the urgency.

684
00:44:56,599 --> 00:44:58,480
Speaker 1: Now, we will do it, and we must do it

685
00:44:58,519 --> 00:45:03,960
at wartime speed. Thank you, God bless you, God bless

686
00:45:04,039 --> 00:45:07,119
this company that you've built, and may God bless our

687
00:45:07,159 --> 00:45:07,880
great Republic.

688
00:45:08,000 --> 00:45:12,559
Speaker 4: Thank you very much, appreciate it. Thank you, thank you,

689
00:45:13,440 --> 00:45:20,880
thank you, you guys, thank you, sir, thank you,