🎙️ podcast Analysis February 17, 2026 The a16z Show

Defense Tech: Silicon Valley's Return to National Interest Creates 25-Year Innovation Cycle

Defense Technology Aerospace & Defense
Tickers
3 Picks
Conviction HIGH
Risk Profile 1.6/10 (LOW RISK)
Horizon 24-36 months
Signal Snapshot Core Theme: Defense Technology

Defense tech bubble with extreme valuations

Space warfare requires new manufacturing paradigm

Space deployment timeline; Government procurement shifts; M&A wave

Executive Summary

Silicon Valley has completed a cultural 180-degree turn on defense investment, moving from Google employee walkouts in 2017 to every major VC firm launching defense practices by 2026. Catherine Boyle from a16z reveals that when they announced their American Dynamism practice in January 2022, Silicon Valley was 'stunned' - yet three weeks later, Russia invaded Ukraine and changed everything. The key insight: this isn't a cyclical defense spending bump, but a structural shift toward space warfare ...

Key Investment Opportunity

Legacy Defense Prime Consolidation Play

Traditional defense contractors will be forced to acquire Silicon Valley capabilities or lose relevance as government demands faster, cheaper, mass-producible systems

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