In this thought leadership article published in AeroDefense Outlook, Eden Attias argues that the next breakthrough in Defense AI depends as much on hardware as software. While AI capabilities are advancing rapidly, UAV performance remains constrained by endurance, power, heat, and modularity. He calls for a shift toward hybrid, open-architecture platforms that enable persistent edge AI, concluding that future defense leaders will be those who successfully integrate advanced software with resilient, scalable hardware.

Everyone in defense is talking about AI models, but the real question is who orchestrates them. Anduril’s Lattice AI system, contracted by the US Army, provides the orchestration layer that connects sensors and effectors into a unified real-time operational picture with autonomous tasking. For OpImpact, the key thesis is that future defense value will come from interoperability, not models. Speed asymmetry is decisive when machine decision loops outpace human ones. This orchestration layer also maps into dual-use enterprise systems, creating durable, defensible value.

DefenseTech is way beyond being a niche sector. In 2025, venture funding reached a record $49.1 billion, reflecting a major shift in investor priorities. Defense contracts provide real-world validation, early revenue, and reduced risk, making them powerful growth accelerators. As governments accelerate demand for AI, cyber, autonomous systems, and resilience technologies, sophisticated investors increasingly view defense as a gateway to broader commercial success.

The dual-use playbook is being rewritten. The old model of building commercially first and later entering defense is breaking down. Defense is no longer slow or last resort, with global spending exceeding $2.7 trillion in 2025 and urgent procurement accelerating across governments. The model has flipped: sovereign defense contracts are now the strongest validation signal for startups, de-risking technology. Defense-first has become the new dominant strategy for deep-tech founders and investors globally.

Global industrial companies increasingly partner with defense investment funds in Israel as the boundary between defense and civilian technology dissolves. AI, autonomy, advanced materials, and resilient energy are reshaping manufacturing, mobility, and infrastructure. Firms use platforms like the OpImpact Fund to access dual-use innovation early, working with vetted startups, local operators, and regulatory networks. The focus is less on defense budgets and more on de-risking innovation and co-developing IP. Similar models are emerging in life sciences and climate tech through deep-tech funds accelerating dual-use technologies.

Energy is becoming the new ammunition as defense enters a structural inflection point. A Patriot PAC-3 costs about $4M per intercept, while a laser engagement costs under $20, reshaping deterrence economics. Over the next 15 years, $250-300B is expected to shift toward power infrastructure, semiconductors, and photonics. OpImpact focuses on enabling systems like energy and thermal management that make directed energy scalable. This dual-use shift is driven by defense needs and commercial sectors such as EVs, medical imaging, and green energy.

Generative AI in Defense: from productivity to Command-and-Control.
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Dual-use technology is entering a new strategic phase as defense and commercial demand converge. The Defense Innovation Unit (DIU) reports growing commercial participation, with 450 prototype contracts since 2016 and $68 billion in private investment tied to dual-use solutions. Notably, 87% of awardees are non-traditional defense firms, highlighting the rise of commercial innovators in national security. This shift accelerates deployment, strengthens revenue diversification, and shortens time-to-market. OpImpact invests in this convergence across AI, autonomy, quantum, energy, and communications, bridging startups into government and industrial ecosystems.

SpaceTech is emerging as a critical layer of global infrastructure, enabling AI computing, connectivity, sensing, and security beyond Earth’s resource constraints. Advanced satellite technologies are transforming industries through real-time intelligence and precision analytics while strengthening defense, emergency response, and national resilience. As commercial and strategic applications converge, dual-use SpaceTech is becoming a major investment opportunity with growing global significance.