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The US Navy is more aggressively telling startups, ‘We want you’


While Silicon Valley executives like those from Palantir, Meta, and OpenAI are grabbing headlines for trading their Brunello Cucinelli vests for Army

Right now, many of these partnerships are being facilitated through what Fanelli calls the Navy’s innovation adoption kit, a series of frameworks and tools that aim to bridge the so-called Valley of Death, where promising tech dies on its path from prototype to production. Fanelli points, for example, to one competition run through the Defense Innovation Unit (DIU), wherein the Navy expected a handful of bidders for a niche cybersecurity challenge but received nearly 100 responses – many from companies that had never worked with the DoD before but were already solving similar problems in the private sector. Fanelli said he wasn’t at liberty to provide specific budget breakdowns, but he said the Navy currently allocates single-digit percentages to emerging and commercial technology versus traditional defense contractors — a balance that he expects to evolve significantly as AI continues to advance.

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