WEBVTT 00:02.900 --> 00:03.900 Hello everybody . 00:14.350 --> 00:18.049 All right . Welcome to Starface , Texas . 00:26.149 --> 00:29.709 This is a city . It's actually legally 00:29.709 --> 00:32.750 a city that uh thanks to the hard work 00:32.750 --> 00:34.860 of the SpaceX team , we built out of 00:34.860 --> 00:38.830 nothing and is now a gigantic rocket 00:38.830 --> 00:42.529 manufacturing system . So , uh , 00:43.189 --> 00:45.356 and , and for people out there who are 00:45.356 --> 00:47.578 curious to see it , we're actually on a 00:47.578 --> 00:47.229 public highway , so you can come and 00:47.229 --> 00:49.590 visit and drive down the road and see 00:49.590 --> 00:53.110 the Epic hardware . So , um , I think 00:53.110 --> 00:55.166 this is the first time that a rocket 00:55.166 --> 00:57.277 development program has actually been 00:57.277 --> 00:59.619 on a public highway . So you can kind 00:59.619 --> 01:02.139 of see the epic stuff . Um , we're , 01:02.209 --> 01:05.129 we're honored today to have , uh , the 01:05.129 --> 01:07.389 Secretary of War , uh , Pete Hexseth , 01:07.970 --> 01:10.137 uh , and much of the senior leadership 01:10.137 --> 01:12.359 of the Pentagon here . It's an honor to 01:12.359 --> 01:14.581 have them visit . We just did a tour of 01:14.581 --> 01:17.169 the factory , and , um , and I think 01:17.169 --> 01:19.336 this , it , it really helps illustrate 01:19.336 --> 01:21.502 how manufacturing and manufacturing at 01:21.502 --> 01:24.010 scale is critical to the strength of 01:24.010 --> 01:27.940 America . So , um , and I'll , I'll 01:27.940 --> 01:30.760 tell you a little bit just about The 01:30.760 --> 01:33.260 purpose of SpaceX . It's like , we 01:33.260 --> 01:36.029 wanna make Star Trek 01:36.809 --> 01:40.029 real . OK . 01:40.690 --> 01:44.540 We wanna make Starfleet Academy real . 01:45.639 --> 01:49.500 So that it's not always science fiction , 01:49.879 --> 01:52.839 but one day the science fiction turns 01:52.839 --> 01:56.279 to science fact . And we have 01:56.279 --> 01:59.239 spaceships going through space , big 01:59.239 --> 02:03.239 spaceships . With people going to other 02:03.239 --> 02:06.209 planets , going to the moon . And 02:06.209 --> 02:09.070 ultimately going beyond our star system 02:09.369 --> 02:12.330 to other star systems where we may meet 02:12.330 --> 02:15.619 aliens . Uh , or discover long dead 02:15.619 --> 02:17.675 alien civilizations , I don't know , 02:17.675 --> 02:20.919 but we wanna go . And we wanna see 02:20.919 --> 02:23.639 what's happening . And we want to have 02:23.979 --> 02:26.940 epic , futuristic spaceships with lots 02:26.940 --> 02:30.009 of people in them . Traveling to places 02:30.009 --> 02:33.130 we've never been to before . Um 02:34.330 --> 02:38.229 Yeah , that's , that's the goal . Um . 02:43.490 --> 02:45.657 And , uh , and that's what I think the 02:45.657 --> 02:47.657 public thinks of when they think of 02:47.657 --> 02:49.823 Space Force . So , uh , on that note , 02:49.823 --> 02:51.990 I'd like to introduce the Secretary of 02:51.990 --> 02:53.229 War , Pete Hegseth . 03:12.300 --> 03:15.009 I love it . Well , what a tour . What 03:15.009 --> 03:17.639 an opportunity to be here at Starbase , 03:18.139 --> 03:21.339 Texas with Elon and the SpaceX team . 03:21.380 --> 03:23.547 There's nothing like this in America . 03:24.020 --> 03:26.298 There's nothing like this in the world . 03:26.899 --> 03:28.955 And what you have built and what you 03:28.955 --> 03:31.500 will build here is a testament to the 03:31.500 --> 03:33.820 strength of American ingenuity and 03:33.820 --> 03:36.100 American invention . So I want to thank 03:36.100 --> 03:38.419 all of you , all the folks out here for 03:38.419 --> 03:40.530 having us today . Elon , thank you so 03:40.530 --> 03:42.641 much for hosting us , for what you've 03:42.641 --> 03:44.641 built , for the vision you have for 03:44.641 --> 03:46.808 this company , the vision you have for 03:46.808 --> 03:49.020 our country , the vision you have for 03:49.020 --> 03:51.242 American innovation . I could not think 03:51.539 --> 03:54.050 of a more fitting venue to continue our 03:54.050 --> 03:56.860 arsenal of freedom tour . And to 03:56.860 --> 03:58.460 outline today the future of 03:58.460 --> 04:01.220 technological innovation at the War 04:01.220 --> 04:03.960 Department . Those of you here at 04:03.960 --> 04:06.071 SpaceX will appreciate this , knowing 04:06.071 --> 04:08.279 that as World War II was ending , the 04:08.279 --> 04:10.390 Secretary of War and Secretary of the 04:10.390 --> 04:12.501 Navy wrote to the National Academy of 04:12.501 --> 04:14.612 Sciences and declared that scientific 04:14.612 --> 04:17.559 research was essential to our national 04:17.559 --> 04:20.869 security . To ensure continued 04:20.869 --> 04:23.309 preparedness , they wrote , the 04:23.309 --> 04:25.198 research scientists of the United 04:25.198 --> 04:27.365 States must be called upon to continue 04:27.365 --> 04:30.109 in peacetime , some substantial portion , 04:30.429 --> 04:32.207 that of which they have made so 04:32.207 --> 04:34.429 effectively during the stress of the 04:34.429 --> 04:37.540 present war . The competitive time 04:37.540 --> 04:39.762 element in developing those weapons and 04:39.762 --> 04:43.160 tactics may be decisive in future 04:43.160 --> 04:46.100 conflicts . You see , those Secretaries 04:46.100 --> 04:48.309 of War and Navy many decades ago 04:48.309 --> 04:50.260 recognized the importance that 04:50.260 --> 04:52.720 innovation and readiness holds for our 04:53.140 --> 04:55.307 national security . They knew what was 04:55.307 --> 04:58.399 at stake . The very freedoms of the 04:58.399 --> 05:01.940 country we hold dear . All across the 05:01.940 --> 05:03.940 United States today , extraordinary 05:03.940 --> 05:05.496 innovation is unlocking new 05:05.496 --> 05:08.600 possibilities for freedom , prosperity 05:08.959 --> 05:11.279 and security . Now , the question 05:11.279 --> 05:14.239 before us is not whether or not the 05:14.239 --> 05:16.183 most powerful technologies of this 05:16.183 --> 05:18.406 century will reinforce free societies . 05:18.406 --> 05:20.295 Is it going to reinforce our free 05:20.295 --> 05:22.350 societies or will that technology be 05:22.350 --> 05:24.660 shaped and twisted by maligned regimes 05:25.000 --> 05:27.750 that seek to use those technologies for 05:27.750 --> 05:30.859 control and coercion ? You see , over 05:30.859 --> 05:32.970 the past several months , I've talked 05:32.970 --> 05:35.137 at length about the challenges we face 05:35.137 --> 05:37.700 in transforming the War Department to 05:37.700 --> 05:39.922 address current and future missions all 05:39.922 --> 05:42.089 in service of meeting the needs of the 05:42.089 --> 05:45.459 21st century war fighter . I'd like to 05:45.459 --> 05:47.348 think we've already made dramatic 05:47.348 --> 05:49.820 progress in the Pentagon's culture by 05:49.820 --> 05:52.589 reviving the warrior ethos , and we're 05:52.589 --> 05:54.811 moving out quickly and transforming our 05:54.811 --> 05:57.160 acquisition ecosystem as well . But 05:57.160 --> 06:00.029 today , is about how we supercharge 06:00.029 --> 06:02.790 innovation at the War Department for 06:02.790 --> 06:06.140 the era ahead . Innovation is happening 06:06.140 --> 06:08.579 at a pace we can't even foresee , and 06:08.579 --> 06:10.579 we need the entire enterprise , our 06:10.579 --> 06:12.579 enterprise , to embrace the urgency 06:12.579 --> 06:15.630 required for this moment . Since the 06:15.630 --> 06:17.519 end of the Cold War , the defense 06:17.519 --> 06:19.790 industrial base in our country has 06:19.790 --> 06:23.079 consolidated . This makes it difficult , 06:23.160 --> 06:26.239 if not impossible , for new creators of 06:26.239 --> 06:28.540 technical innovations to win business 06:28.880 --> 06:31.709 at our department . The result is a 06:31.709 --> 06:34.470 risk averse culture that prevents us 06:34.470 --> 06:36.869 from providing our warfighters with the 06:36.869 --> 06:39.470 best resources that America has to 06:39.470 --> 06:43.429 offer . That ends today . 06:44.709 --> 06:46.931 Simply put , the United States must win 06:46.931 --> 06:49.119 the strategic competition for 21st 06:49.119 --> 06:52.089 century technological supremacy , 06:52.640 --> 06:54.760 artificial intelligence , autonomous 06:54.760 --> 06:57.480 systems , quantum , hypersonics , and 06:57.480 --> 06:59.702 long-range drones . If you talk to Elon 06:59.702 --> 07:02.440 Musk long enough , he will tell you how 07:02.440 --> 07:04.920 important hypersonics and long-range 07:04.920 --> 07:07.320 drones are , and he's 100% correct . 07:07.600 --> 07:09.767 Space capabilities , directed energy , 07:09.920 --> 07:12.489 and biotechnology are the new areas of 07:12.489 --> 07:16.109 global competition . The challenge 07:16.369 --> 07:18.091 is that our legacy approach to 07:18.091 --> 07:21.250 technological development assumes that 07:21.250 --> 07:23.549 technology moves in a predictable 07:23.779 --> 07:27.049 linear conveyor belt from lab to design 07:27.049 --> 07:29.271 to development to prototype to test and 07:29.271 --> 07:32.010 qualify to program of record and can 07:32.010 --> 07:34.130 only be provided by a handful of 07:34.130 --> 07:36.070 companies that have consolidated 07:36.209 --> 07:39.260 dramatically . Now while this system 07:39.260 --> 07:41.371 provided us with the weapons that won 07:41.371 --> 07:44.500 the Cold War , it is archaic and 07:44.500 --> 07:46.720 inconsistent with the novel threat 07:46.720 --> 07:50.140 environment that we face today . At its 07:50.140 --> 07:52.690 core , this old approach has the hubris 07:52.690 --> 07:55.260 to assume that you can easily predict 07:55.260 --> 07:57.649 the future . That you could foresee how 07:57.649 --> 08:00.609 an invention becomes a weapon in 8 easy 08:00.609 --> 08:03.950 steps , 3 decades from first discovery . 08:04.950 --> 08:06.728 Our system cannot keep treating 08:06.728 --> 08:09.549 innovation as a decades-long one-way 08:09.549 --> 08:12.470 march that dramatically reduces who and 08:12.470 --> 08:15.429 what is able to run the gauntlet at our 08:15.429 --> 08:17.709 department to get the capability to the 08:17.709 --> 08:21.670 warfighter . Until this administration , 08:21.750 --> 08:23.472 the Trump administration , the 08:23.472 --> 08:25.583 department's process for fielding new 08:25.583 --> 08:28.309 capabilities had become just one more 08:28.309 --> 08:31.359 post-Cold War peace dividend relic that 08:31.359 --> 08:34.309 has not kept up with the times . Worse 08:34.309 --> 08:36.830 than that , we've done nothing but add 08:36.830 --> 08:39.750 layer upon layer of committees and 08:39.750 --> 08:42.309 councils that coordinated but never 08:42.309 --> 08:45.419 decided . We created endless projects 08:45.419 --> 08:48.140 with no accountable owners . We have 08:48.140 --> 08:50.900 high churn with little progress and few 08:50.900 --> 08:52.956 outputs . That sounds about like the 08:52.956 --> 08:56.770 exact opposite of SpaceX . We treated 08:56.770 --> 08:59.770 innovation as a box to check , not an 08:59.770 --> 09:01.992 outcome to deliver . In short , when it 09:01.992 --> 09:04.326 comes to our current threat environment , 09:04.450 --> 09:07.760 we are playing a dangerous game . With 09:07.760 --> 09:11.270 potentially fatal consequences . We 09:11.270 --> 09:13.609 need innovation to come from anywhere 09:13.750 --> 09:16.419 and evolve with speed and purpose . 09:17.690 --> 09:19.690 You see , America's open scientific 09:19.690 --> 09:21.912 community is an advantage authoritarian 09:21.912 --> 09:24.090 regimes cannot replicate . They can 09:24.090 --> 09:26.312 read our scientific papers and copy our 09:26.312 --> 09:29.280 invention or distill our AI AI models . 09:30.159 --> 09:32.159 But they cannot replicate a culture 09:32.159 --> 09:34.549 like this one of opened and distributed 09:34.890 --> 09:37.559 research . We need to be blunt here , 09:37.599 --> 09:39.869 we can no longer afford to wait a 09:39.869 --> 09:43.320 decade for our legacy prime contractors 09:43.320 --> 09:45.799 to deliver the next perfect system . 09:46.640 --> 09:48.807 Only to find that it's delivered years 09:48.807 --> 09:51.960 behind schedule and cost 10 times what 09:51.960 --> 09:55.239 it should . Winning requires a new 09:55.239 --> 09:58.229 playbook . Elon wrote it with his 09:58.229 --> 10:01.309 algorithm . Question every requirement , 10:01.729 --> 10:04.200 delete the dumb ones , and accelerate 10:04.200 --> 10:07.210 like hell . That's why I want to make 10:07.210 --> 10:09.432 clear across the War Department and for 10:09.432 --> 10:12.010 our partners in the private sector that 10:12.010 --> 10:14.590 our Undersecretary of War for Research 10:14.690 --> 10:16.880 and Engineering , Emil Michael right 10:16.880 --> 10:19.090 here in the front row , is the War 10:19.090 --> 10:22.210 Department's single Chief Technology 10:22.210 --> 10:25.400 Officer , one CTO for the entire 10:25.400 --> 10:29.109 enterprise . Novel concept . As the 10:29.109 --> 10:31.289 sole CTO , Emil will set the technical 10:31.289 --> 10:33.067 direction , lead the innovation 10:33.067 --> 10:35.409 ecosystem that will welcome progress 10:35.590 --> 10:38.030 from anywhere it resides , and he'll 10:38.030 --> 10:41.349 tell me face to face every day , and 10:41.349 --> 10:43.710 frankly whether we are gaining or 10:43.710 --> 10:45.869 losing the technology and innovation 10:45.869 --> 10:48.200 competition . He'll have the decision 10:48.200 --> 10:49.978 authority and will lead through 10:49.978 --> 10:51.978 rigorous evaluation with a focus on 10:51.978 --> 10:55.590 real measurable outcomes . Now Congress , 10:55.659 --> 10:57.826 and we have , many members of Congress 10:57.826 --> 10:59.659 with us here today , will be our 10:59.659 --> 11:01.603 partner in this . By affirming the 11:01.603 --> 11:03.215 Undersecretary's role as the 11:03.215 --> 11:05.437 department's CTO we're carrying out the 11:05.437 --> 11:07.390 core mission for R&E that Congress 11:07.390 --> 11:10.219 assigned in statute . The last defense 11:10.219 --> 11:12.330 bill expanded the CTO's authorities , 11:12.330 --> 11:14.497 including the power to direct military 11:14.497 --> 11:16.497 departments and other components to 11:16.497 --> 11:19.000 align around clear , innovative 11:19.260 --> 11:22.059 outcomes . We , we will use them to 11:22.059 --> 11:25.059 deliver those outcomes with speed and 11:25.059 --> 11:28.659 urgency . An empowered CTO will inject 11:28.659 --> 11:31.979 a disruptive mindset directly into our 11:31.979 --> 11:33.812 systems , directing the power of 11:33.812 --> 11:35.979 America's world leading scientists and 11:35.979 --> 11:38.201 entrepreneurs , our cutting edge labs , 11:38.201 --> 11:40.260 the tech ecosystem , and our capital 11:40.260 --> 11:43.219 markets to build what the warfighter 11:43.219 --> 11:45.820 needs , but to do so better , faster 11:45.820 --> 11:48.659 and cheaper . And Emil is the right man 11:48.659 --> 11:51.099 to do it . You see , this isn't about 11:51.099 --> 11:53.043 military structure , this is about 11:53.043 --> 11:55.099 building an innovation pipeline that 11:55.099 --> 11:57.940 cuts through the overgrown bureaucratic 11:57.940 --> 12:01.359 underbrush and clears away the debris , 12:02.020 --> 12:04.419 Elon style , preferably with a chainsaw . 12:05.900 --> 12:08.700 And to do so at speed and urgency that 12:08.700 --> 12:11.969 meets the moment . As I've said 12:11.969 --> 12:13.913 repeatedly to every audience , the 12:13.913 --> 12:15.969 President of the United States and I 12:15.969 --> 12:18.729 have the backs of our warfighters who 12:18.729 --> 12:21.530 have to make split-second life and 12:21.530 --> 12:23.586 death decisions on the battlefield . 12:24.359 --> 12:26.470 And I want this audience to know that 12:26.470 --> 12:29.260 we also have the backs of innovators 12:29.799 --> 12:32.289 who share that very same urgency . 12:33.650 --> 12:35.761 American taxpayers , especially those 12:35.940 --> 12:38.051 parents whose sons and daughters have 12:38.051 --> 12:40.479 answered the call to serve , I swore in 12:40.580 --> 12:44.260 10 more today . Demand , and I demand , 12:44.299 --> 12:46.169 and we demand that we arm our 12:46.169 --> 12:48.940 warfighters with overwhelming and 12:48.940 --> 12:52.260 lethal technology right now . Not a 12:52.260 --> 12:55.150 decade from now . In modern warfare , 12:55.200 --> 12:58.359 the fastest innovator and iterator will 12:58.359 --> 13:00.539 be the winner . And no one can 13:00.539 --> 13:02.700 out-innovate an American entrepreneur 13:03.020 --> 13:05.330 who has been liberated from the 13:05.330 --> 13:08.320 constraints of stifling bureaucracy . 13:08.859 --> 13:12.059 That old era ends today . 13:13.219 --> 13:17.059 We are done running a peacetime science 13:17.059 --> 13:20.349 fair . While our potential adversaries 13:20.349 --> 13:23.130 are running a wartime arms race . 13:24.900 --> 13:27.020 Right now , from garage startups to 13:27.020 --> 13:29.242 factory floors to boardrooms across our 13:29.242 --> 13:31.464 nation , the question of how to harness 13:31.464 --> 13:33.859 innovation coming out of America's AI 13:33.859 --> 13:35.859 ecosystem is front and center , and 13:35.859 --> 13:37.940 rightfully so . Because it has the 13:37.940 --> 13:40.099 potential to disrupt and transform 13:40.099 --> 13:43.239 every area of human endeavor . 13:43.989 --> 13:46.390 The same is true in the Department of 13:46.390 --> 13:49.330 War . President Trump's AI executive 13:49.330 --> 13:50.997 order spells out our approach 13:50.997 --> 13:53.739 succinctly . It is the policy of the 13:53.739 --> 13:56.239 United States to sustain and enhance 13:56.239 --> 13:58.440 America's global AI dominance in 13:58.440 --> 14:00.830 defense of human flourishing , economic 14:00.830 --> 14:04.320 competitiveness , and national security . 14:05.289 --> 14:07.369 That , ladies and gentlemen , is the 14:07.369 --> 14:09.929 War Department's mission . We must 14:09.929 --> 14:12.250 ensure that America's military AI 14:12.250 --> 14:15.010 dominance so that no adversary can 14:15.010 --> 14:17.849 exploit that same technology to hold 14:17.849 --> 14:20.640 our national security interests or our 14:20.640 --> 14:24.429 citizens at risk . America first in 14:24.429 --> 14:28.309 every domain . Last month I took the 14:28.309 --> 14:30.253 first step toward changing how the 14:30.253 --> 14:32.420 department does business with Frontier 14:32.420 --> 14:34.531 AI technologies when we announced the 14:34.531 --> 14:36.669 rollout of Gen AI with our partners 14:36.669 --> 14:38.780 from Google . And I want to thank the 14:38.780 --> 14:40.780 Google team for leaning forward and 14:40.780 --> 14:42.725 making the investment to get their 14:42.725 --> 14:44.891 Gemini app to about 3 million users in 14:44.891 --> 14:47.650 the War Department . But today , we're 14:47.650 --> 14:49.761 excited to announce the next frontier 14:49.761 --> 14:52.489 AI model company to join Gen 14:52.489 --> 14:55.890 AI.mil , and that is Grok from 14:55.890 --> 14:59.729 XAI which will go live later this month . 15:00.289 --> 15:02.599 So I want to thank you , Elon , and 15:02.599 --> 15:04.770 your incredible team for leaning 15:04.770 --> 15:07.580 forward with us on this as well . Very 15:07.580 --> 15:09.691 soon we will have the world's leading 15:09.691 --> 15:11.691 AI models on every unclassified and 15:11.691 --> 15:14.450 classified network throughout our 15:14.450 --> 15:18.020 department , long overdue . To further 15:18.020 --> 15:20.690 that , today at my direction , we're 15:20.690 --> 15:22.979 executing an AI acceleration strategy 15:22.979 --> 15:25.140 that will extend our lead in military 15:25.140 --> 15:27.362 AI established during President Trump's 15:27.362 --> 15:30.429 first term . This strategy will unleash 15:30.669 --> 15:32.309 experimentation , eliminate 15:32.309 --> 15:34.142 bureaucratic barriers , focus on 15:34.142 --> 15:36.031 investments , and demonstrate the 15:36.031 --> 15:38.590 execution approach needed to ensure we 15:38.590 --> 15:41.109 lead in military AI and that it grows 15:41.109 --> 15:43.650 more dominant into the future . In 15:43.650 --> 15:45.929 short , we will win this race by 15:45.929 --> 15:49.460 becoming an AI first war fighting force 15:49.460 --> 15:51.650 across all domains . From the back 15:51.650 --> 15:53.872 offices of the Pentagon to the tactical 15:53.872 --> 15:57.559 edge on the front lines . The catalyst 15:57.559 --> 15:59.619 for this acceleration will be 7 15:59.919 --> 16:02.679 pacesetting projects focused on mission 16:02.679 --> 16:04.369 threads across warfighting , 16:04.760 --> 16:07.390 intelligence , and enterprise missions , 16:07.640 --> 16:10.190 each with a single accountable leader , 16:10.530 --> 16:12.641 aggressive timelines , and measurable 16:12.641 --> 16:15.080 outcomes that answer a familiar 16:15.080 --> 16:17.489 question , Elon . What have you 16:17.489 --> 16:19.489 accomplished this week ? 16:21.289 --> 16:24.510 This is the execution standard for AI 16:24.510 --> 16:27.770 first transformation . Each of the 7 16:27.770 --> 16:29.849 pace-setting projects will use the 16:29.849 --> 16:33.400 following model . One owner who reports 16:33.400 --> 16:35.289 monthly on their progress . These 16:35.289 --> 16:37.344 projects will not be run in a vacuum 16:37.344 --> 16:39.567 but will work directly with warfighters 16:39.567 --> 16:41.622 and transition partners to ensure we 16:41.622 --> 16:43.640 incorporate real-time operational 16:43.640 --> 16:46.400 feedback . We expect rapid iterations 16:46.400 --> 16:49.239 with failure accelerating the learning 16:49.239 --> 16:52.400 curve . These are not science projects . 16:52.770 --> 16:54.960 They are not governance boards . They 16:54.960 --> 16:56.904 are the execution standard for the 16:56.904 --> 16:59.960 entire department . We will not win the 16:59.960 --> 17:03.099 future by sprinkling AI onto old 17:03.099 --> 17:06.709 tactics like digital pixie dust . We 17:06.709 --> 17:08.800 will win by discovering entirely new 17:08.800 --> 17:11.469 ways of fighting . That's why we will 17:11.469 --> 17:13.839 run continuous experimentation 17:13.839 --> 17:16.660 campaigns , quarterly force on force 17:16.660 --> 17:19.569 combat labs with AI coordinated swarms , 17:19.780 --> 17:22.219 agent-based cyber defense , and 17:22.219 --> 17:25.060 distributed command and control . 17:25.180 --> 17:27.579 Pushing the envelope , learning from 17:27.579 --> 17:30.609 failure at every stop , which is 17:30.609 --> 17:32.887 exactly what this place does . You see , 17:32.887 --> 17:34.998 our department doesn't accept failure 17:34.998 --> 17:37.053 in the past , and so we never fail , 17:37.053 --> 17:38.998 which means we never learn . We're 17:38.998 --> 17:41.810 flipping that dynamic . Before talking 17:41.810 --> 17:43.921 about the new rules of the game , let 17:43.921 --> 17:46.032 me talk about a little bit more about 17:46.032 --> 17:48.254 our new team because no game can be won 17:48.254 --> 17:50.199 without the right team . And we're 17:50.199 --> 17:49.790 proud to announce that Mr . Cameron 17:49.790 --> 17:51.734 Stanley has been appointed the new 17:51.734 --> 17:53.420 Chief Digital and Artificial 17:53.689 --> 17:57.050 Intelligence Officer , CDAO of our War 17:57.050 --> 17:59.217 Department . Cam will be leading a new 17:59.217 --> 18:01.217 team , many of whom have foregone , 18:01.290 --> 18:03.689 thank you , or left lucrative careers 18:03.689 --> 18:06.800 at pioneer companies such as AWS , Data 18:06.800 --> 18:08.856 Bricks , Palantir , and Meta to join 18:09.160 --> 18:11.829 the fight . This team will not only 18:11.829 --> 18:13.940 provide a catalyst for change in this 18:13.940 --> 18:16.770 department . But will also act , we 18:16.770 --> 18:18.569 believe , as a magnet for other 18:18.569 --> 18:20.736 talented members of the tech community 18:20.930 --> 18:22.763 who want to join us in doing the 18:22.763 --> 18:25.609 mission focused work to protect our 18:25.609 --> 18:28.680 great republic . So let's talk about 18:28.680 --> 18:31.609 the new rules . First , speed . 18:32.739 --> 18:35.369 Speed wins , Speed 18:35.890 --> 18:38.219 dominates . Our enterprise currently 18:38.219 --> 18:40.540 operates on staffing and committee 18:40.540 --> 18:43.810 cycles measured in months and years , 18:43.819 --> 18:46.680 and that's unacceptable . Military AI 18:46.680 --> 18:48.347 is going to be a race for the 18:48.347 --> 18:50.458 foreseeable future where the risks to 18:50.458 --> 18:52.402 US national security of moving too 18:52.402 --> 18:55.459 slowly outweigh the impacts of 18:55.469 --> 18:58.479 imperfect alignment . To do this , Cam 18:58.479 --> 19:02.439 and his team at TD CDAO will define AI 19:02.439 --> 19:04.661 deployment velocity metrics for all the 19:04.661 --> 19:06.661 pacesetting projects in the next 30 19:06.661 --> 19:09.680 days and report at least monthly after 19:09.680 --> 19:12.099 that . These will become the new 19:12.099 --> 19:15.500 benchmarks for programs across the 19:15.500 --> 19:19.229 department . Second , bureaucratic 19:19.229 --> 19:21.719 blockers . If you work with Elon , he , 19:21.849 --> 19:24.099 you know he finds the blockers and you 19:24.099 --> 19:26.609 remove them . We will take a wartime 19:26.609 --> 19:29.010 approach to people and policies that 19:29.010 --> 19:32.810 block this progress . You want to 19:32.810 --> 19:34.930 block ? He can work somewhere else . 19:35.579 --> 19:37.801 Barriers to data sharing , authority to 19:37.801 --> 19:40.739 operate or ATOs , test and evaluation 19:40.859 --> 19:43.239 and contracting are now treated as 19:43.239 --> 19:45.760 operational risks , not simply 19:45.760 --> 19:48.380 bureaucratic inconveniences . We are 19:48.380 --> 19:52.189 blowing up these barriers . That's 19:52.189 --> 19:53.967 why today at my direction , I'm 19:53.967 --> 19:56.229 establishing a barrier removal SWAT 19:56.229 --> 19:59.270 team under R&E with the authority to 19:59.270 --> 20:01.390 waive non-statutory requirements and 20:01.390 --> 20:03.969 escalate to our great Deputy Secretary 20:03.969 --> 20:06.869 Steve Feinberg , anything that slows 20:06.869 --> 20:08.530 down the acceleration of AI 20:08.530 --> 20:12.229 capabilities . Third , compute 20:12.229 --> 20:14.380 resource . We will invest heavily in 20:14.380 --> 20:17.780 expanding our access to AI compute from 20:17.780 --> 20:20.290 data centers to the tactical edge and 20:20.290 --> 20:22.457 we'll tap into hundreds of billions of 20:22.457 --> 20:24.679 dollars in private capital flowing into 20:24.679 --> 20:27.280 American AI . President Trump's 20:27.280 --> 20:29.224 executive order has directed us to 20:29.224 --> 20:31.540 build data centers on military land . 20:32.229 --> 20:34.173 And to work with the Department of 20:34.173 --> 20:36.285 Energy to ensure that we dramatically 20:36.285 --> 20:38.229 increase the number and breadth of 20:38.229 --> 20:39.951 resources needed to power this 20:39.951 --> 20:42.939 computing infrastructure . We will work 20:42.939 --> 20:44.995 together with our partners at Google 20:44.995 --> 20:46.969 and AWS and Oracle and SpaceX , 20:47.329 --> 20:49.020 Microsoft and others on these 20:49.020 --> 20:51.579 initiatives . Fourth pillar . 20:52.560 --> 20:54.393 Especially in this room , you'll 20:54.393 --> 20:57.560 understand it , is talent . We will use 20:57.560 --> 20:59.680 every hiring and pay authority 20:59.680 --> 21:01.660 available to us to bring the best 21:02.160 --> 21:04.780 American technical talent and reward 21:04.780 --> 21:07.280 effective AI transformations by our 21:07.280 --> 21:09.319 workforce . We're going to heavily 21:09.319 --> 21:11.430 leverage President Trump's tech force 21:11.430 --> 21:13.430 initiative to bring in the best and 21:13.430 --> 21:15.599 brightest from industry and academia . 21:16.579 --> 21:18.690 With people like Elon , David Sachs , 21:18.770 --> 21:20.714 Emile , Mike , and others from the 21:20.714 --> 21:22.659 entrepreneurial and business world 21:22.659 --> 21:25.290 already in government . We have shown 21:25.290 --> 21:28.410 that we can and that we must enlist the 21:28.410 --> 21:31.630 world's leading talent in this cause . 21:32.920 --> 21:36.079 5th , responsible AI . 21:36.880 --> 21:38.609 Today I want to clarify what 21:39.040 --> 21:41.780 responsible AI means at the Department 21:41.780 --> 21:44.939 of War . Gone are the days of 21:44.939 --> 21:48.560 equitable AI and other DEI and 21:48.560 --> 21:51.199 social justice infusions that constrain 21:51.199 --> 21:53.800 and confuse our employment of this 21:53.800 --> 21:55.949 technology . Effective immediately , 21:56.030 --> 21:58.109 responsible AI at the War Department 21:58.109 --> 22:01.430 means objectively truthful AI 22:01.430 --> 22:03.869 capabilities employed securely and 22:03.869 --> 22:05.536 within the laws governing the 22:05.536 --> 22:07.702 activities of the department . We will 22:07.702 --> 22:10.550 not employ AI models that won't allow 22:10.550 --> 22:12.469 you to fight wars . 22:14.849 --> 22:16.930 We will judge AI models on this 22:16.930 --> 22:19.041 standard alone , factually accurate , 22:19.041 --> 22:21.208 mission relevant , without ideological 22:21.208 --> 22:24.109 constraints that limit lawful military 22:24.109 --> 22:26.729 applications . Department of War AI 22:26.729 --> 22:30.510 will not be woke . It will work for us . 22:31.489 --> 22:33.545 We're building war-ready weapons and 22:33.545 --> 22:35.930 systems , not chatbots for an Ivy 22:35.930 --> 22:39.890 League faculty lounge . 6th 22:40.040 --> 22:43.770 and finally , Data . AI is only as good 22:43.770 --> 22:46.050 as the data that feeds it , and the US 22:46.050 --> 22:47.828 military has an asymmetric data 22:47.828 --> 22:49.994 advantage from two decades of military 22:49.994 --> 22:51.994 and intelligence operations that no 22:51.994 --> 22:53.772 other military in the world can 22:53.772 --> 22:55.606 replicate . But right now we are 22:55.606 --> 22:58.390 underutilizing this advantage . Too 22:58.390 --> 23:00.500 much of our data is stranded . It's 23:00.500 --> 23:03.250 stuck in bespoke program databases , 23:03.270 --> 23:06.349 locked behind Title 10 or Title 50 23:06.349 --> 23:08.949 stovepipes , invisible to operators , 23:09.189 --> 23:11.300 engineers , and industry who can help 23:11.300 --> 23:13.589 us exploit it with winning speed and 23:13.589 --> 23:16.319 scale . And that's why today at my 23:16.319 --> 23:19.109 direction , CDAO will exercise its full 23:19.109 --> 23:22.040 authority to enforce the DOW data 23:22.040 --> 23:25.479 decrees and make all appropriate data 23:25.479 --> 23:27.920 available across federated IT systems 23:27.920 --> 23:31.439 for AI exploitation . Including mission 23:31.439 --> 23:34.319 systems across every service and 23:34.319 --> 23:37.839 component . Each service secretary and 23:37.839 --> 23:40.006 component head will submit catalogs of 23:40.006 --> 23:42.150 their current data assets to the CDAO 23:42.640 --> 23:46.199 within 30 days . Denials of data access 23:46.199 --> 23:48.255 requests will be reported to the CTO 23:48.599 --> 23:51.560 within 7 days , and they better have a 23:51.560 --> 23:54.770 good justification . Today , I'm also 23:54.770 --> 23:56.603 directing the Undersecretary for 23:56.603 --> 23:58.937 Intelligence and Security , Brad Hansel , 23:59.250 --> 24:01.417 to ensure appropriate data from across 24:01.417 --> 24:03.472 our intelligence enterprise receives 24:03.472 --> 24:05.472 the same treatment and can be fully 24:05.472 --> 24:07.528 leveraged to war fighting capability 24:07.528 --> 24:09.750 development and operational advantage . 24:09.750 --> 24:11.930 AI is only as good as the data that it 24:11.930 --> 24:14.041 receives and we're going to make sure 24:14.041 --> 24:16.630 that it's there . Persistent barriers 24:16.630 --> 24:18.852 to data access will be escalated to the 24:18.852 --> 24:21.130 Deputy Secretary of War for resolution . 24:21.699 --> 24:23.939 With authority to reassign or terminate 24:23.939 --> 24:26.579 personnel or withhold funding from 24:26.579 --> 24:28.579 non-compliant activities within the 24:28.579 --> 24:31.819 statutory limits . We'll be clear here , 24:32.079 --> 24:34.599 as I said , data hoarding is now a 24:34.599 --> 24:37.780 national security risk , and we will 24:38.000 --> 24:39.111 treat it that way . 24:41.449 --> 24:43.709 AI is an important part of the future , 24:43.760 --> 24:45.760 but here's another truth that we've 24:45.760 --> 24:49.250 ignored for too long . Beyond AI we've 24:49.250 --> 24:51.417 treated every other kind of innovation 24:51.417 --> 24:54.050 as if they're the same . As you know , 24:54.109 --> 24:57.030 they're not We need to break down 24:57.030 --> 24:58.910 unnecessary barriers to rapid 24:58.910 --> 25:01.189 technological development , adoption , 25:01.280 --> 25:04.170 and transition . Some of you will 25:04.170 --> 25:06.337 remember this , a generation ago , one 25:06.337 --> 25:08.729 of my predecessors in a dinner speech 25:08.729 --> 25:11.609 to industry now infamously known as the 25:11.609 --> 25:13.969 Last Supper , advocated for the 25:13.969 --> 25:16.250 consolidation of our defense industrial 25:16.250 --> 25:19.939 base . This consolidation created a 25:19.939 --> 25:22.609 closed innovation ecosystem dominated 25:22.609 --> 25:25.489 by just a handful of prime contractors . 25:26.670 --> 25:28.837 The results have been characterized by 25:28.837 --> 25:31.800 soaring costs , sluggish delivery , and 25:31.800 --> 25:34.810 stagnant innovation . That's what 25:34.810 --> 25:36.754 President Trump's recent executive 25:36.754 --> 25:38.810 order on the defense industrial base 25:38.810 --> 25:41.369 and defense companies seeks to address . 25:42.560 --> 25:45.400 It makes crystal clear that the 25:45.400 --> 25:47.199 priority of the legacy prime 25:47.199 --> 25:49.099 contractors must be our nation's 25:49.989 --> 25:52.550 national security . Not the next 25:52.550 --> 25:55.540 earnings call . That means less focus 25:55.540 --> 25:58.689 on stock buybacks and more investment 25:58.859 --> 26:01.150 on the men and women on the factory 26:01.150 --> 26:04.109 floor . It means less stockholder 26:04.109 --> 26:07.329 dividends and more investment in 26:07.609 --> 26:10.030 infrastructure , plant , and equipment . 26:11.060 --> 26:14.619 Today , that old era comes to an end . 26:16.290 --> 26:18.449 The Department of War is reopening to 26:18.449 --> 26:20.849 the disruptive energy and agile 26:20.849 --> 26:22.627 creativity of our nation's tech 26:22.627 --> 26:25.760 startups funded by our world's leading 26:25.930 --> 26:28.369 capital markets . I'm directing my 26:28.369 --> 26:30.480 chief technology officer to lead this 26:30.480 --> 26:32.591 charge and his wingman , as always in 26:32.591 --> 26:34.425 this effort , Undersecretary for 26:34.425 --> 26:36.425 Acquisitions and Sustainment , Mike 26:36.425 --> 26:39.589 Duffy . For too long we organized our 26:39.589 --> 26:42.550 ecosystem around stages and silos , 26:42.589 --> 26:45.550 labs over here , so-called rapid units 26:45.550 --> 26:47.989 over there , commercial outreach in a 26:47.989 --> 26:50.156 different building or on another coast 26:50.156 --> 26:52.709 altogether , and warfare fighters 26:52.709 --> 26:54.589 somewhere at the end , almost an 26:54.589 --> 26:57.280 afterthought . The result is 26:57.280 --> 26:59.391 duplication , drift , and confusion . 27:00.199 --> 27:02.421 And like the acquisition process we are 27:02.421 --> 27:05.150 already fixing . The creation of 27:05.209 --> 27:07.099 organizations to work around the 27:07.099 --> 27:09.380 problems in the innovation ecosystem 27:09.699 --> 27:12.660 rather than taking the bold steps 27:12.660 --> 27:15.060 needed to transform it . We created an 27:15.060 --> 27:17.227 old ecosystem to get around the actual 27:17.227 --> 27:21.069 system . No more . Every dollar of 27:21.069 --> 27:23.319 innovation , whether it may be in a lab 27:23.319 --> 27:25.319 or a startup or a classified shop , 27:25.400 --> 27:28.250 must exist to deliver one of three 27:28.250 --> 27:31.359 things . Game-changing technology . 27:32.250 --> 27:35.060 scalable products or new ways of 27:35.060 --> 27:37.250 fighting . If it's not doing one of 27:37.250 --> 27:40.420 those 3 things at speed , it will be 27:40.420 --> 27:43.709 realigned or it will go away . And 27:43.709 --> 27:45.876 that's why I'm entrusting Emile as the 27:45.876 --> 27:47.765 CTO to ensure that this directive 27:47.765 --> 27:49.969 across the department is rapidly 27:50.310 --> 27:52.829 carried out . Emil , you're gonna be 27:52.829 --> 27:56.699 busy . Again , what we're talking 27:56.699 --> 27:59.729 about today is a transformation in the 27:59.729 --> 28:02.550 way we think about innovation . In 28:02.550 --> 28:04.772 requirements reform led by Mike Duffy , 28:04.772 --> 28:07.380 we killed an old model , a sclerotic 28:07.380 --> 28:10.030 model , and rewired the department so 28:10.030 --> 28:11.586 that problems , money , and 28:11.586 --> 28:15.229 experimentation live in one system . In 28:15.229 --> 28:17.229 acquisitions reform , we killed the 28:17.229 --> 28:19.869 defense acquisition system and created 28:19.869 --> 28:21.758 accountable portfolio acquisition 28:21.758 --> 28:24.699 executives , making speed to delivery , 28:24.949 --> 28:27.589 speed to delivery , our organizing 28:27.589 --> 28:29.756 principle . We're going to do the same 28:30.270 --> 28:33.449 for technological innovation . That's 28:33.449 --> 28:35.393 why today at my direction , we are 28:35.393 --> 28:37.449 ending the alphabet soup of councils 28:37.569 --> 28:40.890 that meet and brief and write memos and 28:40.890 --> 28:43.489 schedule meetings but never decide and 28:43.489 --> 28:45.949 rarely if ever accelerate outcomes . 28:46.790 --> 28:48.800 Effective immediately , the Defense 28:48.800 --> 28:51.189 Innovation Steering Group , the Defense 28:51.189 --> 28:53.949 Innovation Working Group , and the CTO 28:53.949 --> 28:56.349 council are disestablished and 28:56.349 --> 28:59.619 abolished . In their place , the CTO 28:59.619 --> 29:02.859 will convene a CTO action group to 29:02.859 --> 29:04.692 assist him in making decisions , 29:04.739 --> 29:06.572 clearing bureaucratic blockers , 29:06.709 --> 29:08.900 holding leaders accountable , and most 29:08.900 --> 29:11.180 importantly , quickly delivering new 29:11.180 --> 29:14.140 technologies to our warfighters . 29:15.199 --> 29:17.520 Every organization in this ecosystem 29:17.520 --> 29:21.439 must earn its place by delivering 29:21.439 --> 29:23.661 war fighting advantages faster than our 29:23.661 --> 29:27.229 adversaries can adapt . No sacred cows , 29:27.680 --> 29:31.510 no exceptions . To back up 29:31.510 --> 29:33.677 the CTO today in my direction , we are 29:33.677 --> 29:35.566 realigning two pillars of the War 29:35.566 --> 29:38.089 Department's innovation ecosystem . 29:38.869 --> 29:41.420 First , the Defense Innovation Unit , 29:41.430 --> 29:45.079 or DIU . Since its establishment 10 29:45.079 --> 29:46.968 years ago , DIU has lived through 29:46.968 --> 29:49.119 shifting reporting structures and 29:49.119 --> 29:51.819 uneven administrative support , doing 29:51.819 --> 29:53.719 great things , but at times its 29:53.719 --> 29:55.830 portfolio overlapped with other parts 29:55.830 --> 29:57.959 of the department . Effective today , 29:58.130 --> 30:01.239 DIU is is designated a Department of 30:01.239 --> 30:03.949 War field activity . Providing 30:03.949 --> 30:06.209 exceptional tech scouting , rapid 30:06.209 --> 30:08.431 contracting , and other common services 30:08.431 --> 30:10.930 to the department , executed at 30:11.079 --> 30:15.020 commercial tempo . The CTO will provide 30:15.020 --> 30:17.319 support to DIU for administrative and 30:17.319 --> 30:19.375 resource matters and ensure that the 30:19.375 --> 30:21.140 unit's efforts fit into the 30:21.140 --> 30:23.196 department's innovation priorities . 30:24.880 --> 30:27.510 The director of DIU will also continue 30:27.510 --> 30:29.732 to report directly to me as a principal 30:29.732 --> 30:31.839 staff assistant and carry out its 30:31.839 --> 30:35.170 statutory duties . And I'm appointing 30:35.170 --> 30:38.930 Mr . Owen West , executor of my drone 30:38.930 --> 30:41.140 dominance initiative , as the director 30:41.140 --> 30:44.660 of DIU starting in March when the FY 27 30:44.660 --> 30:47.550 budget cycle firms up . As a marine 30:47.550 --> 30:49.661 with lots of combat experience , Owen 30:49.661 --> 30:51.828 will bring a warfighter's mentality to 30:51.828 --> 30:55.369 DIU's core mission of transitioning 30:55.369 --> 30:58.560 technology to our troops . Owen also 30:58.560 --> 31:00.589 has the private capital experience 31:00.589 --> 31:02.750 needed to ensure DIU remains working 31:02.750 --> 31:04.989 hand in glove with the venture and 31:04.989 --> 31:07.100 investor communities and continues to 31:07.100 --> 31:09.969 on-ramp new entrants into the War 31:10.189 --> 31:13.750 Department . Owen led Doge at 31:13.750 --> 31:17.430 DOW . The most effective Doge effort 31:17.430 --> 31:19.652 across the administration , saving tens 31:19.652 --> 31:21.374 of billions of dollars for our 31:21.374 --> 31:23.486 department , and now he will lead the 31:23.486 --> 31:26.189 IU . Our world leading defense tech 31:26.189 --> 31:28.189 startups have attracted billions of 31:28.189 --> 31:30.356 dollars in capital . They're reshaping 31:30.356 --> 31:32.411 warfare through the proliferation of 31:32.411 --> 31:34.411 high-tech , low-cost technologies . 31:34.411 --> 31:36.356 DIU's mission is to accelerate the 31:36.356 --> 31:38.522 adoption of this commercial technology 31:38.522 --> 31:40.709 to help convert entrepreneurial 31:40.709 --> 31:43.569 products into tangible combat power . 31:45.119 --> 31:47.859 Second , The Strategic Capabilities 31:47.859 --> 31:51.530 Officer SCO is also being designated a 31:51.530 --> 31:53.410 Department of War field activity 31:53.410 --> 31:56.199 aligned under the CTO . SCO will 31:56.199 --> 31:58.310 maintain focus on its core mission of 31:58.310 --> 32:01.609 identifying and prototyping disruptive 32:01.609 --> 32:03.498 applications of new systems , the 32:03.498 --> 32:05.831 unconventional uses of existing systems , 32:06.089 --> 32:08.145 and near-term technologies to create 32:08.380 --> 32:11.689 strategic effects . SCO will continue 32:11.689 --> 32:13.810 to maintain its statutory direct 32:13.810 --> 32:15.866 reporting relationship to the deputy 32:15.866 --> 32:18.010 secretary , but will be operationally 32:18.010 --> 32:20.650 realigned under the CTO to eliminate 32:20.650 --> 32:23.910 duplication and ensure the relentless 32:24.010 --> 32:27.329 daily focus on delivering near and 32:27.329 --> 32:30.430 medium-term capabilities to our 32:30.770 --> 32:34.089 warfighters . Relentless urgency and 32:34.089 --> 32:38.060 focus is our focus . Today's 32:38.060 --> 32:40.380 defense innovation ecosystem is too 32:40.380 --> 32:43.239 fragmented , resulted in insufficient 32:43.239 --> 32:45.572 technology transition to the warfighter . 32:45.572 --> 32:47.406 We addressed some of this in the 32:47.406 --> 32:49.406 transformation we are making in the 32:49.406 --> 32:51.461 acquisitions ecosystem , but it also 32:51.461 --> 32:53.795 needs to enter the innovation ecosystem . 32:53.979 --> 32:56.146 For too long , and I know a lot of you 32:56.146 --> 32:58.257 have experienced this , and others we 32:58.257 --> 33:00.423 met with in Los Angeles recently . The 33:00.423 --> 33:01.923 experience of founders and 33:01.923 --> 33:04.359 entrepreneurs has been running endless 33:04.359 --> 33:07.040 laps around the Pentagon , looking for 33:07.040 --> 33:09.760 the right office , the right program , 33:10.000 --> 33:12.770 and the right motivated sponsor . And 33:12.770 --> 33:14.881 too often new entrants are ultimately 33:14.881 --> 33:17.130 stymied by the bureaucracy . We hear it 33:17.130 --> 33:19.241 time and time again , they don't know 33:19.241 --> 33:21.297 where to go and then when they go to 33:21.297 --> 33:21.109 that place , it's not the right place 33:21.109 --> 33:23.109 to go , then they go somewhere else 33:23.109 --> 33:25.053 that didn't want them in the first 33:25.053 --> 33:26.989 place and the lap continues . For 33:26.989 --> 33:30.270 example , SpaceX and Palantir had to 33:30.270 --> 33:33.310 sue the Department of War just to get a 33:33.310 --> 33:35.589 shot at competing for department 33:35.589 --> 33:38.420 contracts . The bottom line is that new 33:38.420 --> 33:42.060 entrants need both a shot on goal but 33:42.060 --> 33:44.859 also faster yeses and faster nos from 33:44.859 --> 33:47.081 the department rather than being strung 33:47.081 --> 33:49.939 along with a never ending stream of 33:49.939 --> 33:53.920 rudderless maybes . At the Secretary 33:53.920 --> 33:55.864 of War level , we will replace the 33:55.864 --> 33:59.859 existing maze into two clear channels . 34:00.640 --> 34:02.307 The mission , engineering and 34:02.307 --> 34:05.800 integration activity , MEA will tell 34:05.800 --> 34:07.967 industry what problems we're trying to 34:07.967 --> 34:10.668 solve . And DIU will help program 34:10.668 --> 34:12.829 officers adopt what industry has 34:12.829 --> 34:15.309 already built . This will help get to 34:15.309 --> 34:19.249 faster yeses or faster nos . Clear 34:19.349 --> 34:22.569 guidance , clear guide rails , clear 34:23.029 --> 34:25.196 demand signal , which is what industry 34:25.196 --> 34:28.159 and capital expects . Now this isn't 34:28.159 --> 34:30.103 just an office of the Secretary of 34:30.103 --> 34:32.840 Reform , the services need to transform 34:32.840 --> 34:35.479 their innovation ecosystems as well , 34:35.560 --> 34:37.782 the Army , the Navy , the Space Force , 34:37.782 --> 34:39.949 the Marine Corps , and the Air Force . 34:40.219 --> 34:42.386 That's why today at my direction , our 34:42.386 --> 34:44.163 military services will take the 34:44.163 --> 34:46.219 following actions . Within 90 days , 34:46.219 --> 34:47.997 the secretaries of the military 34:47.997 --> 34:49.886 departments will brief the CTO on 34:49.886 --> 34:51.886 service innovation plans , how they 34:51.886 --> 34:53.775 will consolidate , streamline and 34:53.775 --> 34:56.760 refocus their labs , research expertise , 34:56.860 --> 34:58.939 experimental units , and rapid 34:58.939 --> 35:02.340 capability offices around 3 innovation 35:02.340 --> 35:06.300 outcomes . Our 60+ labs are a 35:06.300 --> 35:09.080 national asset . But it's past time 35:09.080 --> 35:11.247 they were organized to deliver and not 35:11.247 --> 35:14.350 just to discover . And beginning with 35:14.350 --> 35:16.550 the fiscal year 2028 budget , every 35:16.550 --> 35:19.479 portfolio acquisition executive will 35:19.479 --> 35:22.949 fund an innovation insertion increment , 35:23.290 --> 35:25.969 Triple I dedicated money for the last 35:25.969 --> 35:27.949 mile , integration test and rapid 35:27.949 --> 35:30.370 insertion of validation solutions into 35:30.790 --> 35:34.149 fielded systems . Innovation cannot be 35:34.149 --> 35:36.929 centralized , and it should not be . 35:38.199 --> 35:41.030 In fact , Hope , hope it's OK I name 35:41.030 --> 35:43.219 them . But just this past weekend I 35:43.219 --> 35:45.386 received an email , a proposal from an 35:45.386 --> 35:47.552 army captain named Drennan Green , who 35:47.552 --> 35:49.441 I've known for a while . He had a 35:49.441 --> 35:51.663 detailed plan about how he and his unit 35:51.699 --> 35:55.610 wants to deploy AI . Innovation can and 35:55.610 --> 35:58.959 should come from anywhere . And any one , 35:59.370 --> 36:01.649 wherever those best ideas reside , 36:01.699 --> 36:03.866 we're going to bring that good captain 36:03.866 --> 36:06.139 in and hear from him . How can we apply 36:06.139 --> 36:09.219 those tools in his unit and other units 36:09.459 --> 36:12.659 bottom up , not just top down . 36:14.199 --> 36:16.088 The military services and program 36:16.088 --> 36:18.959 offices own the last mile , and to that 36:18.959 --> 36:20.959 end , I'm directing the services to 36:20.959 --> 36:23.639 establish that III innovation insertion 36:23.639 --> 36:26.479 increment within the budgets of all 36:26.479 --> 36:29.199 program portfolios . This will ensure 36:29.199 --> 36:31.088 that they have funds set aside to 36:31.088 --> 36:33.919 quickly integrate innovations during 36:33.919 --> 36:36.729 weapons system development . This will 36:36.729 --> 36:38.729 be a tool to free new innovative 36:38.729 --> 36:40.840 cutting edge weapons and improvements 36:40.840 --> 36:43.889 from the constraints of yearly budget 36:43.889 --> 36:47.090 cycles . Here you iterate in terms of 36:47.090 --> 36:50.050 hours and days , maybe weeks . In 36:50.050 --> 36:52.770 Washington we talk in terms of months , 36:52.969 --> 36:55.040 years , and oftentimes multi-years . 36:55.290 --> 36:58.770 It's too slow . The CTO ecosystem will 36:58.770 --> 37:00.879 give them the supply . Services are 37:00.879 --> 37:03.290 contributors to this ecosystem , not 37:03.290 --> 37:05.810 bystanders . They must deliver outcomes 37:05.810 --> 37:09.659 and they must deliver overmatch . And 37:09.659 --> 37:11.881 speaking of budgets and budget cycles , 37:11.881 --> 37:13.881 you may have seen President Trump's 37:13.881 --> 37:17.209 truth posts . Of a few days ago , he's 37:17.209 --> 37:20.870 proposing a $1.5 trillion budget 37:21.530 --> 37:23.729 for the War Department in fiscal year 37:23.729 --> 37:27.449 27 . This is by far the most ever in 37:27.449 --> 37:30.770 our history , a historic and 37:30.770 --> 37:33.010 generational investment in American 37:33.010 --> 37:36.050 security . We will not squander this 37:36.050 --> 37:37.939 once-in a-lifetime opportunity to 37:37.939 --> 37:40.909 rebuild our military . Think of what 37:40.909 --> 37:43.076 this means as our efforts to transform 37:43.076 --> 37:45.550 the department come fully online . You 37:45.550 --> 37:48.110 add resources and you streamline 37:48.110 --> 37:49.943 process , speed to deliver those 37:49.943 --> 37:51.943 capabilities to the warfighter , an 37:51.943 --> 37:54.350 invitation to new entrants into the 37:54.350 --> 37:56.939 defense industry which we need so badly , 37:57.229 --> 37:59.396 and an embrace of AI and other cutting 37:59.396 --> 38:02.310 edge defense tech . All of this will 38:02.310 --> 38:04.590 make our forces more agile , more 38:04.590 --> 38:08.229 lethal , and more ready to deter and 38:08.229 --> 38:10.719 if necessary , win . A future fight 38:11.600 --> 38:13.767 This is what President Trump demands . 38:14.300 --> 38:16.899 And this is what we will deliver . 38:18.520 --> 38:20.919 This feeds into a next area we need to 38:20.919 --> 38:23.800 fix . You see , reorganizing and a new 38:23.800 --> 38:26.022 attitude are not enough to truly unlock 38:26.022 --> 38:28.600 innovation for the warfighter . Our 38:28.600 --> 38:30.822 department needs to capitalize on a key 38:30.822 --> 38:32.544 advantage America has over her 38:32.544 --> 38:35.159 adversaries , the broadest and deepest 38:35.159 --> 38:37.159 capital markets , and the best 38:37.159 --> 38:39.860 entrepreneurial talent in the world . 38:41.010 --> 38:43.177 You know this capital is the lifeblood 38:43.177 --> 38:45.510 of American innovation . And therefore 38:45.510 --> 38:47.621 to be successful , we need to embrace 38:47.621 --> 38:50.169 the role in our department of private 38:50.469 --> 38:52.525 capital , which we have not done for 38:52.525 --> 38:54.636 far too long . We need to be a better 38:54.636 --> 38:56.780 partner for private capital so we can 38:56.780 --> 38:58.949 help accelerate capital formation in 38:58.949 --> 39:01.149 key areas and lower the risk for the 39:01.149 --> 39:03.879 department . Private capital is already 39:03.879 --> 39:05.990 helping to solve a major problem that 39:05.990 --> 39:07.935 President Trump has directed us to 39:07.935 --> 39:09.810 confront and solve across this 39:09.810 --> 39:12.379 administration . Ending our reliance on 39:12.379 --> 39:14.800 competitors for access to rare earth 39:15.379 --> 39:18.219 and critical minerals . The Office of 39:18.219 --> 39:20.830 Strategic Capital or OSC under the 39:20.830 --> 39:22.790 leadership of David Lorch is 39:22.790 --> 39:24.989 spearheading those efforts and 39:24.989 --> 39:28.149 delivering as we speak . In the past 39:28.149 --> 39:30.909 five months alone , the OSC team has 39:30.909 --> 39:33.590 deployed over $4.5 billion in capital 39:33.590 --> 39:35.590 commitments as part of closing six 39:35.870 --> 39:39.060 critical mineral deals , all of which 39:39.229 --> 39:41.830 will help free the United States from 39:41.830 --> 39:45.290 market manipulation . Crucially , OSC's 39:45.290 --> 39:48.239 strategy relies on crowding in private 39:48.239 --> 39:51.239 sector investors from this VC community 39:51.239 --> 39:53.679 to our country's largest financial 39:53.679 --> 39:56.679 institutions . The 6 OSC deals to date 39:56.679 --> 39:58.623 include nearly $5 billion from our 39:58.623 --> 40:01.540 private capital partners . OSCE has 40:01.540 --> 40:03.879 closed most of those deals in less than 40:03.879 --> 40:07.129 30 days . Which is Trump time . 40:07.860 --> 40:11.060 For complex transactions . That may 40:11.060 --> 40:14.409 seem maybe slow for SpaceX . In 40:14.409 --> 40:16.687 Washington , that's as fast as it gets . 40:16.687 --> 40:19.020 I mean that is warp speed in Washington . 40:19.149 --> 40:21.629 All of our investments serve one 40:21.629 --> 40:25.100 purpose . Deliver faster 40:25.320 --> 40:29.159 for the warfighter . Now some will want 40:29.159 --> 40:31.080 to cynically posit , is this just 40:31.080 --> 40:33.580 another innovation reorganization ? 40:33.959 --> 40:36.040 Another set of strategies that brief 40:36.040 --> 40:40.020 well but don't actualize ? No . This is 40:40.020 --> 40:43.409 the 3rd leg of a single war plan . In 40:43.409 --> 40:45.131 fundamentally transforming our 40:45.131 --> 40:47.379 acquisition ecosystem , we killed 40:47.379 --> 40:50.620 JSIDSs that focused only on process and 40:50.620 --> 40:52.620 turned the J RockC into a body that 40:52.620 --> 40:55.020 ranks real world joint operational 40:55.020 --> 40:57.659 problems , not paper requirements . We 40:57.659 --> 41:00.260 created the MEA to run experiment 41:00.260 --> 41:02.540 experimentation campaigns to solve 41:02.780 --> 41:04.899 these problems . We killed the old 41:04.899 --> 41:07.066 defense acquisition system and created 41:07.066 --> 41:09.379 the war fighting acquisition system to 41:09.379 --> 41:12.219 focus on speed , risk , and 41:12.219 --> 41:15.260 accountability . With the AI strategy 41:15.260 --> 41:17.489 and innovation ecosystem transformation 41:17.489 --> 41:19.770 that we have just outlined , we are 41:19.770 --> 41:23.070 welding that 3rd piece into place . 41:23.699 --> 41:26.850 The CTO , DIU , SCO , DARPA , CDAO , 41:26.899 --> 41:29.419 and OSC are no longer a loose 41:29.419 --> 41:32.719 federation . They are the Office of the 41:32.719 --> 41:35.399 Secretary of War's Innovation Operating 41:35.399 --> 41:38.870 System . DARPA delivers game-changing 41:38.870 --> 41:40.870 technology innovation and strategic 41:40.870 --> 41:43.510 surprise . DIU delivers scalable 41:43.510 --> 41:45.800 products . SCO delivers new ways of 41:45.800 --> 41:48.850 fighting , and CDAO and OSC provide the 41:48.850 --> 41:51.149 data , test , and capital to move at 41:51.149 --> 41:54.899 wartime speed . As of today , they are 41:54.899 --> 41:58.229 an ecosystem . An arsenal of 41:58.229 --> 42:01.389 ideas and action for the arsenal of 42:01.389 --> 42:04.629 freedom , wired directly into 42:04.629 --> 42:06.550 requirements , portfolios , and 42:06.550 --> 42:09.330 production . Game changing technology , 42:09.790 --> 42:12.189 scalable products , new ways of 42:12.189 --> 42:16.139 fighting . All three moving at wartime 42:16.139 --> 42:19.219 speed . Problems drive experimentation . 42:19.330 --> 42:21.610 Experimentation flows to prototypes . 42:22.030 --> 42:23.752 Prototypes flow to our program 42:23.752 --> 42:26.139 executives . Program executives flow 42:26.139 --> 42:28.899 these to production . Production flows 42:29.179 --> 42:31.860 to the warfighter , and the cycle never 42:31.860 --> 42:35.139 stops , always iterating . One system , 42:35.459 --> 42:38.500 one purpose , speed to the fight . 42:39.570 --> 42:41.909 We are preparing to win the future . 42:42.760 --> 42:45.439 Because we know , and you know , for 42:45.439 --> 42:47.760 the free world , for the West , the 42:47.760 --> 42:50.600 stakes could not be higher . 42:52.399 --> 42:54.232 Before this administration , our 42:54.232 --> 42:56.360 adversaries may have thought they 42:56.360 --> 42:59.199 finally broke American power . 43:00.530 --> 43:03.320 They're wrong They do not have our 43:03.320 --> 43:05.810 entrepreneurs . They do not have our 43:05.810 --> 43:08.169 capital markets . They do not have our 43:08.169 --> 43:10.689 combat-proven operational data from two 43:10.689 --> 43:13.409 decades of military and intelligence 43:13.409 --> 43:15.298 operations . They do not have our 43:15.298 --> 43:18.000 hard-won classified technologies . They 43:18.000 --> 43:20.870 do not have the ingenuity and tenacity 43:20.959 --> 43:23.409 of American warfighters who refuse to 43:23.409 --> 43:26.179 lose . They don't have a military that 43:26.179 --> 43:29.689 can go 37 hours to downtown Tehran or 43:29.820 --> 43:32.340 downtown Caracas without being seen in 43:32.340 --> 43:36.000 the process . You see , but none of 43:36.000 --> 43:37.722 that matters , however , if we 43:37.722 --> 43:39.840 suffocate those advantages under a 43:39.840 --> 43:43.429 stifling bureaucracy . That's why we're 43:43.429 --> 43:45.429 unifying the innovation ecosystem , 43:45.469 --> 43:48.689 making this an AI first department . 43:49.379 --> 43:52.219 And holding every lab , every program 43:52.219 --> 43:55.020 accountable , all while pushing every 43:55.020 --> 43:56.798 officer to deliver war fighting 43:56.798 --> 44:00.620 advantages faster than others can adapt . 44:01.949 --> 44:05.070 We will not stop We will not back down , 44:05.209 --> 44:08.810 we will forge the new arsenal of 44:08.810 --> 44:11.550 freedom with our partners in industry 44:11.689 --> 44:14.199 and the private sector . We believe the 44:14.199 --> 44:16.421 future will be shaped by those who lead 44:16.421 --> 44:19.159 in technology and innovation . We don't 44:19.159 --> 44:22.030 believe we know . Those who fervently 44:22.030 --> 44:24.030 believe in freedom and the Western 44:24.030 --> 44:27.709 tradition , like we do , must be those 44:27.709 --> 44:31.389 leaders . If not us , if not America , 44:31.510 --> 44:35.479 if not the West , then who ? And if not 44:35.479 --> 44:39.020 now , it will be too late to maintain 44:39.020 --> 44:41.360 that advantage . This is not reform for 44:41.360 --> 44:44.409 the sake of reform . It never has been . 44:44.840 --> 44:46.784 This is about whether our warriors 44:46.784 --> 44:49.409 fight with yesterday's tools or they 44:49.409 --> 44:51.353 fight overmatching our adversaries 44:51.353 --> 44:53.850 using tomorrow's technologies . We know 44:53.850 --> 44:56.560 the threat . We know the opportunity . 44:57.080 --> 44:59.340 We know what must be done . We share 44:59.800 --> 45:03.610 the urgency . Now we will do it and we 45:03.610 --> 45:07.550 must do it at wartime speed . Thank you . 45:08.399 --> 45:10.566 God bless you . God bless this company 45:10.566 --> 45:12.677 that you've built , and may God bless 45:12.677 --> 45:14.677 our great republic . Thank you very 45:14.677 --> 45:16.629 much . Appreciate it . Thank you .