The U.S. must achieve and maintain dominance in AI, promoting a global 'American AI stack' aligned with U.S. values as a counter to a censored Chinese alternative.
The Department of Defense must be able to use commercial technology for any lawful purpose, and cannot allow private tech companies like Anthropic to impose their own policy restrictions that could hinder military operations.
The U.S. has created critical national security vulnerabilities by over-outsourcing its industrial base and must urgently re-domesticate supply chains for key materials like critical minerals, batteries, and pharmaceuticals.
The Pentagon's procurement model must shift from prescriptive, cost-plus contracts to simpler, outcome-based requirements with firm-fixed-prices to foster innovation and enable new companies to compete with established primes.
China is engaged in the largest military buildup in world history, representing a significant threat that necessitates a rapid modernization of U.S. defense capabilities, particularly in AI, hypersonics, and autonomous systems.
Pre-Government
Served as COO of Uber, overseeing a period of massive growth from ~100 to ~20,000 employees and from a few cities to over 500. During this time, he was involved in strategic investments in autonomous vehicle technology, including the acquisition of a robotics company from Carnegie Mellon.
Appointment
Appointed by the current administration as the Under Secretary of Defense for Research and Engineering.
Early Actions
Streamlined the Department of Defense's technology priorities by reducing the number of "critical technology areas" from 14 down to 6, with "Applied AI" designated as the number one priority.
AI Acceleration
Spearheaded a rapid expansion of AI adoption within the DoD, launching the GenAI.mil platform in 60 days. This initiative reportedly increased the number of AI users from 80,000 to 1.2 million in a 90-day period.
Industrial Base Focus
Utilized the Office of Strategic Capital to execute multiple deals aimed at re-shoring critical mineral supply chains and reducing dependency on China.
Policy Conflict
Became a central figure in a public conflict with AI company Anthropic over its restrictive usage policies, arguing that such limitations imposed by private companies on the military create unacceptable national security vulnerabilities.
▶AI-Powered Defense ModernizationMar–Apr 2026
A central theme is Michael's aggressive push to integrate artificial intelligence across the Department of Defense. This involves making "Applied AI" the top technology priority, launching the GenAI.mil platform to 3 million employees, and dramatically increasing the number of personnel using AI tools.
Investors should note the DoD's strategy is not to compete with commercial AI labs but to be a primary, large-scale customer, creating significant opportunities for companies that can adapt foundation models for defense-specific applications.
▶Geopolitical Tech Race with ChinaMar–Apr 2026
Michael consistently frames US defense technology strategy as a direct response to a perceived existential threat from China. He highlights China's historic military buildup, theft of US AI models, and dominance over critical supply chains as the primary drivers for American policy.
This framing suggests that companies aligned with national security objectives, particularly in areas like domestic manufacturing and AI, will likely see continued policy support and government investment, regardless of broader market trends.
▶Revitalizing the American Defense Industrial BaseApr 2026
Michael advocates for rebuilding America's domestic manufacturing capabilities to reduce dependence on foreign adversaries for critical goods like minerals, batteries, and pharmaceuticals. This involves using financial instruments like the Office of Strategic Capital's lending authority and reforming procurement to foster a new generation of defense tech companies beyond the traditional primes.
Analysts should monitor the Office of Strategic Capital and programs like AppFit, as they represent significant, low-cost capital sources for companies in critical sectors, potentially de-risking investment in hardware and manufacturing startups.
▶Bridging Silicon Valley and the Pentagon
A key effort for Michael is to change the culture of the DoD to make it more accessible and attractive to the tech industry. This includes simplifying RFPs, providing faster decisions, and creating initiatives like the "US Tech Force" to recruit recent graduates for tours of service, aiming to infuse the department with commercial-sector talent and speed.
The success of these cultural and procedural reforms is a leading indicator for the defense tech sector; if the DoD can truly become a faster, more decisive customer, it will significantly lower the barrier to entry for startups.