Amid Elon Musk's Push For Drones And AI For Combat Transformation, Analyst Pierre Ferragu Says Shift The Defense Budget In Favor Of Startups

In a provocative discourse on modern military technology, leading tech innovators are challenging traditional warfare strategies, arguing that autonomous drones and artificial intelligence will fundamentally transform military combat.

What Happened: Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk sparked widespread discussion by asserting that “future wars are all about drones & hypersonic missiles” and that human-piloted fighter jets will be quickly decimated in modern conflict.

Pierre Ferragu, an analyst at New Street Research, further proposed redirecting Defense Department budgets toward innovative startups, drawing parallels to NASA’s approach two decades ago.

Musk’s perspective was amplified during a podcast with Joe Rogan and Marc Andreessen, where they detailed the potential of AI-controlled aircraft. The experts highlighted critical advantages of drone warfare, including:

• Unprecedented processing speeds
• Ability to withstand extreme G-forces
• Elimination of human physical limitations
• Potential for larger, more numerous deployment

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What Happened: The Pentagon’s F-35 program, manufactured by Lockheed Martin Corp. (NYSE:LMT), remains a focal point of debate. Despite a staggering $1.8 trillion estimated total cost, the program continues to face scrutiny from technology leaders questioning its long-term relevance.

Musk, recently appointed to co-lead the Department of Government Efficiency (DOGE), has been vocal about reducing government expenditures. His critique extends beyond military technology, previously warning about potential economic risks from excessive government spending.

Analysts like Mario Georgiou from InCred Global Wealth U.K. suggest potential annual savings between $50-100 billion, though this represents a modest fraction of the projected $6.7 trillion federal budget for 2024.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.