Spoils of war: money flows into defence tech

This episode of The Intelligence from The Economist explores how modern warfare and defense technology are being reshaped by a new generation of tech-driven companies, dubbed 'neoprimes'—Palantir, SpaceX, and Anduril—challenging traditional military contractors. These firms, backed by Silicon Valley innovation and supported by the Trump administration, are winning major defense contracts through agile, AI-integrated systems and drone technology, particularly in response to lessons from the wars in Ukraine and Iran. While the old guard of defense primes still dominate in contract value, venture capital is flooding into these upstarts, signaling a potential shift in the defense industry's power structure. The episode also examines the controversial use of AI in weapons, the ethical concerns around autonomous systems, and the political risks of favoritism, especially given ties between these companies and Trump allies. The broader historical context traces America’s rise as a superpower through its involvement in world wars, economic transformations, and technological innovation, culminating in the atomic age and the postwar global order. Finally, a satirical segment on workplace emoji use highlights generational divides in digital communication, underscoring the evolving culture of modern work.