The new defense playbook: Partnerships, capital, capability

The aerospace and defense sector serves as a critical foundation for national security, necessitating a new strategic playbook driven by the Security and Resiliency in Action (SRI) initiative. Global defense spending is surging toward $1.5 trillion, fueling significant investment in high-growth areas such as AI, cybersecurity, drones, and subsea capabilities. Derek Chollet and Mark Marengo highlight a historic influx of venture capital into next-generation technology companies, marking a shift where frontier tech and military readiness are now inextricably linked. This evolution requires deep collaboration between the public sector and private financial institutions like J.P. Morgan, which has committed $10 billion to support these efforts. Beyond the United States, a massive spike in European defense budgets and successful public offerings indicate a global trend toward strengthening supply chain resilience and sovereign security through sustained, multi-partner investment over the next decade.