The raising of funds for manufacturing. Where will that be? Why make it in the US? Yeah. The investment by founder Sun officially makes it the largest position that Founders Fund has had in our 20-year history. So, as the founder of the company, co-founder of the company, that's kind of exciting to be on both sides of the table there. The Arsenal one project is a significant undertaking for the company. It's kind of predicated by this recognition that our weapons inventory in the United States literally is missing is zero on the end of it. And we may be okay on day zero, stretched on day 30, but there's no way that we have the amount of equipment that we need. If we were to go into an act of conflict on day 300, what Arsenal is all about is putting our own skin in the game rather than asking the taxpayer to pony up all of the risk and giving a head start, a leap into production of these systems at

quantity. So we're not asking the taxpayer to do that by themselves. The taxpayer does do it for legacy rivals. Why shouldn't they do it for you? Why do it on your own? Right. That is the historical model. The problem is, is that that is exactly what slows innovation, because the business model of the legacy defense industry is cost. Plus, it's let's wait until the government pays us to do something and then we'll get some small amount of margin on top of that. This isn't the way technology innovation works, as you know. You know, the requirement is to step up, put your own capital into internal research and development, and then you have to kind of take the position of betting on yourself that the thing that you're building and developing is the thing that the customer is going to buy at the end of the day. And that's exactly what we're doing it in internal trade. Good morning. I saw a post me on social media about

the location of the facility. I think you might have been facetious, but where will it be? Not San Francisco, but will it be in SoCal? Right. I was frankly amazed at the amount of people that thought I was being serious when I said that we were deliberating, putting it in San Francisco. We're obviously not putting Arsenal one in San Francisco. You know, I think there are a lot of states that are very much in play. Interest will come down to availability, site availability, greenfield versus brownfield, and the incentives that we're able to get from the states to accelerate as quickly as possible into the program. So. Well, not sure yet. Can't really comment any further than that, but hopefully we'll have more information in the coming months. There are just so many people that credit and the real is being the league-leading defense tech startup. Right. You talk to Kara really interesting about don't put the burden on the taxpayer to fund the growth of

operations. But I'm trying to sort of build a timeline of when all of the big money from government does go to and Israel, and there's an openness to just engage with Silicon Valley. The culture is certainly shifting. We've seen tremendous moves since, honestly, SpaceX and Palantir were founded earlier on in the 21st century, and really is stepping into that wave. We have the benefit of being able to stand on the shoulders of giants that have done an incredible job creating that market space. You know, I think the defense tech industry as a whole has seen a major boom that you guys have talked about quite a bit here on the air at Bloomberg. The question is really about like how much the government is going to be able to lean into picking winners, not in an unfair sense, but really in the sense of identifying the companies that are going to be able to scale to the to the to the

size of the problem. And that's the focus that we've had since the beginning, is not on research and development projects, but on scaling into production requirements that the warfighter has. And that's a culture that shifting over time as we move away from very high cost, low volume legacy, exquisite systems into some of these higher volume charitable assets in the autonomy space that we're focused on as a company. How does the cultural change depend on who's in the White House? It's a sensitive question, but when you look at who's first put money into Andrew, well, J.D. Vance was one of them. He could be in the White House. Would that make a big change, do you think? You know, it's obviously like a weird conversation in Silicon Valley because there's this kind of belief that defense is this weirdly Republican thing. And the reality is for anyone that works in D.C. is, you know, this is just completely

false. Defense is a bipartisan area. You know, as all the other bills are kind of drudgery, dredging their way through Congress, the National Defense Authorization Act passes with a near supermajority every single year. I don't think we're affected at all by politics, whether it's, you know, a Harris administration or a potential second Trump administration. We're in a good place. And in either case, it's more about leaning into the things that the Pentagon needs and not really worrying about how politics affects that. There is some state-level politics, Elon, pulling space from Hawthorne in California. But and the real slow quarter. So cow story. I'm sorry to get back to it, Trey, but what do you make of that? You know, for us, the location of our research and development facilities is largely predicated on access to talent. It's really important that we have the ability to recruit and retain the best

software engineers, the best hardware engineers that are going to be able to, that will be critical to us building the products that we're working on. So, do I think that it would be just as easy to do that in places that don't have a critical mass of engineering talent? Not necessarily. We have no plan to leave Southern California as our headquarters at any point in the future right now.

Anduril Hits $14B Valuation With Latest Funding

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