by winston » Wed Sep 03, 2025 11:29 am
Where the White House’s AI priorities intersect with bottlenecks and national-security vulnerabilities:
1. Chips and packaging: Intel got the first bite, but GlobalFoundries (GFS) remains America’s other trusted foundry – especially for defense, RF, and auto chips.
2. Rare earths and magnets: MP got the first deal. But one horse in the national security race isn’t enough. USA Rare Earth (USAR) is already producing magnets in Oklahoma and could be the next magnet maker to get a government backstop.
3. Energy and nuclear power: In May, the White House signed executive orders to accelerate nuclear permitting, with a specific eye on powering AI data centers. BWX Technologies (BWXT), already building a microreactor for the Department of Defense (DoD), is an obvious candidate for expansion capital.
4. Space: The Space Force just opened up its $13 billion NSSL Phase 3 contracts to new entrants. Rocket Lab (RKLB) has already been on-ramped and has a deepening National Reconnaissance Office (NRO)/DoD book.
An equity kicker isn’t out of the question. Similarly, Planet Labs (PL) and BlackSky (BKSY) are both under 10-year contracts with the NRO. And with the Russia-Ukraine war proving how essential commercial imagery is, bolstering these players with strategic investment makes sense.
5. Robotics and autonomy: The DoD’s Replicator initiative aims to field “thousands” of autonomous systems. Kratos (KTOS) is front-running with its Valkyrie combat drone. AeroVironment (AVAV) is delivering miniature munition Switchblades at scale. Either could see structured deals to accelerate production.
6. Cybersecurity and data resilience: The federal zero-trust mandate is moving fast. CrowdStrike (CRWD), Zscaler (ZS), and Rubrik (RBRK) already hold FedRAMP certifications.
Washington may not buy equity here, but it will write very large multi-year checks. And if data-recovery capacity is deemed critical, there’s always the chance of a deeper investment.
7. Frontier AI models: The DoD’s Chief Digital and Artificial Intelligence Office (CDAO) has already inked $200 million prototype contracts with OpenAI, Anthropic, Alphabet (GOOGL), and xAI. OpenAI, in particular, sits at the intersection of frontier AI safety and national security. A structured government stake down the line would not shock us.
Source: Hypergrowth Investing
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