American defense technology company Anduril's CEO, Brian Schimpf, believes the nature of modern warfare has transformed significantly. Speaking at Fortune's Brainstorm Tech conference in Aspen, Schimpf emphasized that economic disruption is increasingly becoming a primary objective in contemporary conflicts.
Shift in Modern Warfare
Schimpf noted that modern conflicts are no longer focused mainly on destroying military assets but on targeting the infrastructure that keeps economies running. He cited the economic warfare around the Strait of Hormuz as an example of the new normal. "The US and Israel did something like 10 times as many strikes in the first month of the war as they did in the entire Gulf War. This is the new normal of what these conflicts are going to look like," Schimpf said.
Key Targets and Drone Technology
According to Schimpf, assets such as data centers, oil refineries, and critical shipping routes have become key targets in modern conflicts. He argued that the rise of relatively inexpensive drone technology has made it easier to disrupt economic activity at scale.
Supply Chains as Strategic Concern
Schimpf argued that the US faces a unique challenge because of its economic ties with China. "It's essentially impossible to inflict economic pain on China without catastrophic economic pain on the US," he said. He also warned that supply chain vulnerabilities have become a major national security issue. As an example, Schimpf pointed to the pace at which military resources can be consumed during conflicts. He said the US used roughly 850 Tomahawk missiles over four weeks during the conflict with Iran, while replenishment rates had previously been much lower.
Anduril's Focus on Raw Materials
To address such challenges, Anduril is looking beyond weapons manufacturing and focusing on access to critical raw materials. "We're looking at how do we secure supply of germanium years out," Schimpf added. He also highlighted that China has spent years strengthening its position in critical mineral supply chains, including rare-earth magnets and copper-related materials, thereby creating dependencies that could affect future technology and defense industries.
Defense Tech Bubble and IPO Plans
The Anduril CEO also commented on the rising valuations in the defense technology sector, with some companies valued at dozens of times their projected revenue. "I do think there is a bit of a bubble," Schimpf said, arguing that companies pursuing high valuations may face increasing pressure to maintain growth expectations. While Anduril has frequently been linked to a potential stock market listing, Schimpf said the company is not in a hurry to go public. "Right now, we're in a hype-y time. We're growing like crazy. Why would we go out right now? We don't need to," he continued.
Schimpf also noted that it is common for companies to struggle after going public, whether amid heightened market enthusiasm or before achieving sustainable profitability. "For now, Anduril's focus is on scaling its operations and solving long-term defense and supply chain challenges, not an immediate IPO," he said.
