26 April 2015

Buying the Stairway to Heaven: Pentagon Will Open Office in Silicon Valley and Pump Venture Capital into High-Tech Companies

Doug Cameron
April 23, 2015

The Pentagon plans to open its first office in Silicon Valley and provide venture capital in an effort to tap commercial technology that can be used to develop more advanced weapons and intelligence systems.

Pentagon officials said the twin moves are part of a broader effort by the defense department to field technology more quickly and cheaply amid concerns that potential adversaries such as China are closing the gap or surpassing U.S. capabilities.

However, the Pentagon’s push faces resistance from technology companies and the venture-capital community, which has long been wary of becoming ensnared in the department’s bureaucracy and uncertain budget outlook.

Defense Secretary Ash Carter is scheduled to unveil the plans in a speech at Stanford University on Thursday that will also discuss a new Pentagon strategy for cyberwarfare. The three-day visit to Silicon Valley will include meetings with technology executives such as Facebook Inc. Chief Operating Officer Sheryl Sandberg, as well as a venture-capital round table hosted by Andreessen Horowitz, according to a senior Pentagon official.

No comments: