This conversation with Emil Michael, Under Secretary of War for Research and Engineering, reveals that the most critical advancements in defense are not about simply adopting new technologies, but about fundamentally re-architecting how the Department of War (DoW) operates, innovates, and builds its industrial base. The hidden consequence of traditional approaches is a slow, bureaucratic inertia that leaves the nation vulnerable. Michael highlights that true strategic advantage comes from embracing immediate discomfort and delayed gratification -- investing in scalable, producible, and resilient systems rather than relying on expensive, exquisite one-offs. This is essential reading for defense technologists, policymakers, and entrepreneurs seeking to understand and shape the future of national security, offering a roadmap to navigate complexity and build durable competitive advantages where others falter.

The Unseen Battlefield: Reimagining Defense in the Age of AI and Industrial Rebirth

In the relentless pursuit of national security, the most profound transformations rarely stem from the obvious. While headlines often focus on the cutting edge of weaponry, a deeper, more systemic shift is underway within the U.S. Department of War (DoW). In a recent conversation on the No Priors podcast, Emil Michael, the Under Secretary of War for Research and Engineering, illuminated a critical truth: the race for technological superiority is inextricably linked to the painstaking, often unpopular, work of rebuilding the defense industrial base and fostering a culture of rapid, consequence-aware innovation. The conventional wisdom, which prioritizes immediate solutions and familiar processes, is proving insufficient. What Michael’s insights reveal are the hidden dynamics of a complex system, where decisions made today ripple through decades, creating vulnerabilities or forging unparalleled strength.

The prevailing narrative around military modernization often centers on the next breakthrough weapon system. However, as Michael articulates, the true challenge lies not just in developing advanced technologies like hypersonics or AI-powered autonomous systems, but in ensuring they can be produced at scale, affordably, and with resilience against an increasingly sophisticated global landscape. This requires a radical departure from the "exquisite but expensive" model that has characterized defense procurement for too long. The urgency is palpable, driven by a global military buildup unprecedented in history, demanding a different level of investment and a fundamentally different way of thinking. This conversation unpacks the intricate systems at play, demonstrating how immediate discomfort and a willingness to tackle complex, long-term challenges are the true architects of lasting strategic advantage.

Why the Obvious Fixes Make Things Worse: The Bureaucratic Inertia

The Department of War, a colossal organization with immense resources, has historically struggled with the pace of technological change. Michael’s restructuring of his role, consolidating oversight of critical technology areas like DARPA, the Chief AI Office, the Defense Innovation Unit (DIU), and the Strategic Capability Office, is a direct response to this challenge. The traditional structure, where acquisition, technology, and logistics were bundled, often created bottlenecks. By splitting research and engineering, Michael aims to inject the urgency and entrepreneurial spirit of Silicon Valley into the heart of government.

The "14 Priorities" Fallacy: Dilution of Focus

One of the most striking revelations from Michael’s discussion is his critique of the previous proliferation of "critical technology areas." He likens it to a company with 14 product lines -- uninvestable and unfocused. "14 priorities mean no priorities at all," he states, a sentiment that resonates deeply with anyone familiar with large organizations. This dilution of focus is a classic systems failure: by trying to be everything to everyone, the department risked achieving nothing significant. The downstream effect of such broad mandates is a diffusion of resources, talent, and attention, leading to incremental progress at best, and stagnation at worst. The immediate benefit of acknowledging many needs is overshadowed by the hidden cost of failing to master any single one.

Michael’s solution was to cut these down to six, making them more action-oriented and aligning them with the sprints and execution cycles common in engineering teams. This strategic narrowing is not about ignoring other areas, but about creating concentrated points of leverage. By identifying common needs across the services -- the "enablers" that benefit the Army, Navy, Air Force, and Space Force alike -- Michael seeks to achieve economies of scale and avoid duplication. This approach, while seemingly simple, requires a deep understanding of the interconnectedness of defense capabilities and a willingness to push back against the natural tendency to cater to every individual service’s unique, but isolated, demands. The systemic impact is a more efficient allocation of the $150 billion spent annually on technology, directing resources where they can achieve the greatest strategic leverage.

The "Valley of Death" and the Hidden Cost of Capital Scarcity

A recurring theme is the struggle to bridge the "valley of death" -- the chasm between a promising prototype and scalable, manufactured reality. This is where the conventional wisdom of "build it and they will come" falters. Entrepreneurs may develop a brilliant piece of hardware or software, but the path to mass production, especially for defense applications where lives are at stake, is fraught with peril. Michael highlights that the traditional RFP process, with its 300-page requirement documents, favors established primes adept at navigating bureaucracy, not nimble startups with novel solutions.

The hidden cost here is not just financial, but strategic. Companies that can't scale are effectively removed from the equation, leaving the department reliant on a shrinking pool of contractors. This leads to a concentration of power, higher costs, and reduced innovation. Michael’s initiatives, like the DIU for rapid contracting and the Office of Strategic Capital with its $200 billion lending authority, are designed to directly address this. By providing low-cost loans, crowding capital around critical areas, and signaling demand, these programs aim to make the production of essential components and systems viable. The immediate discomfort for entrepreneurs is the need to demonstrate not just a prototype, but a credible plan for producing 10,000 units. The long-term payoff, however, is a resilient defense industrial base capable of meeting national security needs.

The Unseen Advantage: Embracing Discomfort for Lasting Moats

The most powerful insights from this conversation revolve around how embracing difficulty and delayed gratification creates durable competitive advantages. This is where the system truly rewards those who look beyond the immediate and invest in the foundational elements that others overlook.

Scaled Hypersonics and Directed Energy: The Price of Mass Production

Michael’s focus on "scaled hypersonics" and "scaled directed energy" exemplifies this principle. The technology for hypersonic missiles and directed energy weapons (like lasers or high-powered microwaves) exists. The challenge, and the opportunity, lies in making them producible at scale and at a reasonable price. This is a stark contrast to the current reality where these are "exquisite" and very expensive.

The immediate benefit of an expensive, cutting-edge system is obvious: it’s the latest and greatest. The hidden cost is its limited deployability and the strategic vulnerability it creates if adversaries can field more numerous, albeit less sophisticated, alternatives. Michael’s vision, inspired by companies like Anduril, is to democratize these advanced capabilities. The downstream effect of achieving scale and affordability is a fundamental shift in the strategic balance. It moves from a model of scarcity and exclusivity to one of widespread deterrence. The systemic impact is that the U.S. can field more of these critical systems, overwhelming potential adversaries not just with individual technological superiority, but with sheer volume and cost-effectiveness. This requires patience, as developing scalable manufacturing processes is a long and arduous journey, but the payoff is a lasting competitive moat.

Autonomous Systems and Drones: The Human Life Dividend

The shift towards autonomous systems, particularly drones, is presented not just as a technological evolution, but as a moral imperative. The Russia-Ukraine war has starkly illustrated the devastating human cost of territorial battles. Michael frames robots as "the new front line," suggesting that their deployment can significantly reduce human casualties.

The conventional approach might focus on the technical marvel of autonomous navigation or swarm coordination. However, Michael’s perspective emphasizes the broader system: how these technologies impact human life, resource allocation, and the very nature of warfare. The immediate benefit of deploying autonomous systems is reduced risk to personnel. The hidden cost of not doing so is the continued acceptance of high human losses. Over time, this leads to a more sustainable and ethically defensible approach to conflict. The systemic impact is a military that can project power and achieve objectives with greater efficiency and less human toll, freeing up human capital for more complex, strategic roles. This shift, he predicts, will see 20-30% of defense budgets allocated to autonomous systems within a decade, a testament to its growing importance and delayed but significant payoff.

Rebuilding the Defense Industrial Base: The Unpopular Necessity

Perhaps the most challenging and consequential aspect of Michael’s mission is the revitalization of the American defense industrial base. The historical trend of consolidation, with the number of major defense contractors shrinking from 50 to around five, has created critical dependencies and vulnerabilities. Michael likens the current situation to a Maslow’s hierarchy of needs, where national survival necessitates regaining proficiency in critical areas like pharmaceuticals, critical minerals, semiconductors, and advanced manufacturing.

The immediate temptation is to rely on foreign supply chains for cost-effectiveness. The hidden cost, as demonstrated by geopolitical tensions and supply chain disruptions, is a profound loss of national sovereignty and strategic agility. Michael’s "Arsenal of Freedom Tour" is a direct effort to signal to industry that the DoW is serious about fostering new entrants and supporting existing ones. The shift in procurement from rigid requirement documents to problem-defined challenges is a deliberate attempt to lower barriers for startups.

The systemic impact of rebuilding this base is immense. It's not just about producing more hardware; it's about fostering innovation through competition, ensuring supply chain resilience, and creating high-paying jobs. This is where immediate discomfort -- the effort and investment required to onshore manufacturing and develop new capabilities -- yields a profound, long-term advantage. Companies that can master scaled manufacturing, particularly for combined hardware-software products, will find immense opportunity. The warning to entrepreneurs is clear: this is not like selling to Uber; lives are at stake. This elevated sense of purpose, coupled with a more accessible procurement process, is designed to attract talent and capital to areas that were once considered too difficult or unglamorous for mainstream tech.

GenAI.mil: Speeding Up Bureaucracy Through Deliberate Design

The rapid deployment of GenAI.mil, reaching over a million users in its first 30 days, is a prime example of how to inject speed and agility into a large bureaucracy. Michael’s approach bypasses the typical protracted committee-based decision-making.

Architecting for Security and Speed

The challenge with deploying generative AI within the DoW network is not merely technical, but deeply rooted in security. Unlike signing up for ChatGPT, DoW networks have stringent security protocols. The risk of proprietary data seeping into public models is unacceptable. Michael’s team, a "tiger team" of former engineers from leading tech companies, architected a solution with a different data flow, ensuring that sensitive information remained contained.

The immediate benefit of this rapid deployment is the widespread availability of a powerful tool across the enterprise. The hidden cost of traditional, slower methods would have been months or years of delay, during which productivity gains would have been missed. The systemic impact of GenAI.mil is multifaceted: it enhances enterprise efficiency, augments intelligence analysis by processing vast amounts of data, and improves war-gaming and planning simulations. This serves as a powerful demonstration of AI’s potential, breaking down barriers and encouraging further adoption. The speed achieved, while not matching private industry, is remarkable for government and is attributed to "fast people" and a culture that prioritizes forward progress over bureaucratic hurdles.

Applied AI: Enterprise, Intelligence, and Warfighting

Michael categorizes applied AI initiatives into three broad areas: enterprise use cases (efficiency gains), intelligence (analyzing vast data streams), and warfighting (simulations, planning, execution). This structured approach ensures that AI is not just a theoretical exercise but a practical tool deployed across critical functions.

The immediate advantage of these initiatives is tangible improvement in specific areas. For instance, by teeing up relevant intelligence for human analysts, AI dramatically increases their leverage. The downstream effect is a more informed and responsive intelligence apparatus. In warfighting, AI can unlock new levels of complexity in simulations, allowing for more robust scenario planning. The systemic impact is a department that is more efficient, more insightful, and better prepared for complex operational challenges. By picking "pace-setting projects" that serve as demonstrations, Michael aims to change mindsets and accelerate the adoption of AI across the entire organization.

Recruiting the Fixer-Builders: Talent as the Ultimate Enabler

Underpinning all these ambitious initiatives is the critical need for talent. Michael’s recruitment strategy is a departure from traditional government hiring, focusing on a "fixer-builder mentality." He draws parallels to the talent acquisition at companies like Uber and the approach taken by the Department of Energy (DOE) under its previous CTO.

The US Tech Force: Service Through Technology

The vision for the US Tech Force, aiming to bring thousands of college graduates into government for two-year stints, reframes public service for technologists. This is not about replacing soldiers but about offering an alternative form of national service. The immediate benefit for the government is access to cutting-edge skills. The downstream effect for the individuals is gaining credibility and experience in tackling complex, high-impact problems. The systemic impact is a potential infusion of new talent and perspectives into government, fostering a generation that understands both technological innovation and public service. This initiative aims to make service in government a "badge of honor," a valuable experience that enhances future career prospects in industry.

"Dialing for Dollars" and the Power of Network

Michael’s personal approach to recruitment, which he calls "dialing for dollars," highlights the importance of leveraging personal networks. He actively reaches out to individuals who have recently left jobs, offering them the chance to work on "the coolest stuff you can possibly imagine." This direct, personalized approach, combined with appeals to friends and peers for referrals, demonstrates a proactive and agile recruitment strategy.

The immediate benefit is filling critical roles with high-caliber individuals. The hidden cost of traditional, slow government hiring processes is the loss of top talent to faster-moving private sector opportunities. By contrast, Michael’s method creates a sense of urgency and excitement. The systemic impact is the creation of high-performing teams capable of driving rapid change. This "fixer-builder" ethos, coupled with the mission-driven nature of government work, attracts individuals who are motivated by impact rather than just compensation, creating a powerful engine for innovation.

The Arsenal of Freedom Tour: Rebuilding the Engine of Innovation

The "Arsenal of Freedom Tour," led by Secretary Hexas and Michael, is a tangible manifestation of the DoW’s commitment to revitalizing the defense industrial base. It signifies a fundamental shift in how the department engages with industry.

A New Front Door for Innovation

Historically, defense procurement has been characterized by lengthy, rigid processes that inadvertently exclude innovative startups. Michael’s description of the shift from 300-page requirement documents to open-ended problem statements is revolutionary. This change acknowledges that startups often have unique solutions that may not fit pre-defined molds.

The immediate benefit of this new approach is increased accessibility for new entrants. The hidden cost of the old system was the stifling of innovation and the reliance on a few large, established contractors. The downstream effect of this "open wide front door" is a more dynamic and competitive industrial ecosystem. The systemic impact is a defense industrial base that is healthier, more agile, and better equipped to meet the evolving threat landscape. The tour itself serves as a powerful signal, providing "permission" and promoting these changes, ensuring that industry understands the department's seriousness about expansion and health.

The Entrepreneurial Opportunity: Beyond the Prototype

For entrepreneurs, the message is clear: the DoW is open for business, but with a critical caveat. While the demand for sophisticated solutions is high, the expectation extends beyond a functional prototype. Michael stresses the need for a credible plan for scaled manufacturing. "What's the plan to get me 10,000 of these?" is the crucial question.

The immediate benefit for entrepreneurs is the opportunity to engage with a massive market and a clear demand signal. The hidden cost of not considering manufacturing early is the inability to translate innovation into strategic advantage. The downstream effect of focusing on scaled production is the creation of companies that are not just technologically advanced, but industrially robust. The systemic impact is a defense industrial base that can meet the nation's needs, moving beyond dependency on foreign suppliers and fostering American ingenuity. This requires a different kind of entrepreneurial mindset, one that embraces the "hardware is hard" reality and builds for resilience and scale from the outset.

Conclusion: The Strategic Imperative of Long-Term Vision

Emil Michael’s insights paint a compelling picture of a Department of War undergoing a fundamental transformation. The narrative is not one of simply adopting new technologies, but of re-architecting processes, fostering a culture of urgency, and rebuilding the foundational industrial capabilities that underpin national security. The most significant advantages are being forged not in the immediate gains of quick fixes, but in the patient, often uncomfortable, work of creating scalable systems, resilient supply chains, and a talent pool equipped for the challenges of the 21st century. The future of warfare, and indeed national security, will be shaped by those who can see beyond the horizon, embrace complexity, and understand that true strength lies in the enduring power of a robust and innovative industrial ecosystem.

Key Action Items

• Prioritize Ruthlessly: Condense technology focus areas to a manageable number (e.g., six) to ensure deep investment and execution, avoiding the dilution of resources across too many initiatives. Immediate Action.
• Embrace Scaled Production: For entrepreneurs and established companies alike, develop and present clear, credible plans for scaled manufacturing of hardware and software solutions, not just prototypes. Immediate Action.
• Re-evaluate Procurement: Shift from rigid, requirements-based RFPs to problem-defined challenges that invite innovative solutions from a broader range of companies, particularly startups. Over the next quarter.
• Invest in the Industrial Base: Actively seek opportunities to support companies focused on critical materials, semiconductors, advanced manufacturing, and other areas vital to supply chain resilience. This pays off in 12-18 months.
• Foster a "Fixer-Builder" Culture: Recruit and retain talent with a proactive, problem-solving mindset, offering pathways for technologists to serve the country through innovation. Ongoing, with a focus on developing the US Tech Force over the next year.
• Accelerate AI Adoption: Focus applied AI initiatives on clear use cases in enterprise efficiency, intelligence analysis, and warfighting, using pace-setting projects to demonstrate value and drive broader adoption. This pays off in 6-12 months.
• Build for Durability: When developing new systems, prioritize long-term viability, scalability, and cost-effectiveness over immediate, expensive, and limited deployments. This creates lasting advantage over 2-5 years.