a16z Podcast• Mar 13, 2026• 26:27Interview

Emil Michael: The Department of War Is Moving Faster Than Silicon Valley on AI | The a16z Show

From a16z Podcast

Emil Michael•CTO, Department of War

Executive Summary

The US Department of War is dangerously behind in AI adoption while facing China's historic military buildup, creating an urgent need for technological acceleration.
Under new leadership, the Department has made Applied AI its top priority, dramatically increasing personnel using AI from 80,000 to 1.2 million in 90 days.
The Department is overhauling its procurement process, moving from slow, prescriptive contracts to faster, outcome-based models to better integrate innovative commercial technology.
A critical vulnerability from being locked-in with a single AI vendor with restrictive terms has spurred a strategic shift to build a multi-vendor ecosystem of patriotic tech partners.

10 quotes

Concerns Raised

China's historic military buildup and theft of US AI models
Critical vendor lock-in with a single AI provider whose terms were restrictive
Domestic supply chain vulnerabilities for key components like motors and batteries
Slow, 'peacetime' procurement culture hindering innovation and speed
The US military being significantly behind in AI adoption and application

Opportunities Identified

Rapidly scaling AI adoption across the DoD to enhance intelligence and warfighting
Shifting to faster, outcome-based procurement to attract innovative startups
Building a diverse ecosystem of patriotic tech vendors to ensure capability and resilience
Re-domesticating critical manufacturing and supply chains for national security
Leveraging AI to solve complex logistics, materials science, and operational planning problems

Key Themes

The National Security AI Imperative

The US military is significantly behind adversaries, particularly China, in the application of AI. The speaker frames rapid AI adoption not as an option but as a critical necessity for maintaining combat power, enhancing everything from intelligence analysis and logistics to warfighting simulations.

This highlights the immense market opportunity and strategic urgency for AI companies to engage with the defense sector, as the government is now aggressively seeking to close this capability gap.

Reforming Pentagon Procurement for a Tech-Driven Era

The DoD's traditional 'peacetime speed' procurement process, characterized by slow, complex contracts and a culture of avoiding definitive 'no's', is ill-suited for the modern tech landscape. The speaker is actively shifting to faster, simpler, outcome-based contracts to attract and integrate innovative startups.

This signals a significant change in how the government buys technology, creating new entry points and a more predictable environment for non-traditional defense contractors and venture investors.

The Peril of Vendor Lock-in and Misaligned Values

The DoD's reliance on a single commercial AI provider with restrictive terms of service created a major national security vulnerability, where the vendor's corporate 'constitution' could conflict with lawful military operations. This experience has driven a new strategy to diversify vendors and partner with companies whose values align with democratic oversight.

This underscores the importance for tech companies to understand and align with the mission and legal frameworks of their government customers, as value-alignment is becoming a key procurement criterion.

Geopolitical Competition and Supply Chain Vulnerability

Decades of outsourcing have left the US dependent on adversaries like China for critical components, from minerals to drone parts, creating significant national security risks. The speaker emphasizes the urgent need to re-domesticate key supply chains and build a self-reliant industrial base to ensure national resilience.

This points to major investment and business opportunities in domestic manufacturing, critical materials, and supply chain security, driven by explicit national security mandates.

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Topics

AI Adoption Department of Defense (DoD)Procurement Reform National Security Geopolitics China Defense Industrial Base Vendor Lock-in Terms of Service Supply Chain Security Startups Public-Private Partnership CTO (Chief Technology Officer)CDAO (Chief Digital and AI Office)Skydio

Processed Apr 6, 2026 yt-dlp + mlx-whisper + Gemini