The trillion-dollar stack: Defense tech is hiring on every floor - opinion

Defense tech is booming across multiple layers, from AI platforms to low-cost hardware, with massive hiring and investment, while the broader tech sector faces AI-driven layoffs. Startups like Kela and Anduril are raising billions, and NATO has approved over $40 billion for counter-drone defense. Israeli defense exports reached $19.2 billion in 2025.

Defense tech is booming across multiple layers, from AI platforms to low-cost hardware, with massive hiring and investment, while the broader tech sector faces AI-driven layoffs. Kela, a two-year-old startup, raised $200 million at a $1.2 billion valuation. Anduril doubled its valuation to $61 billion. Palantir posted $1.63 billion in Q1 revenue. The defense semiconductor market was worth $13.4 billion in 2025. SandboxAQ's quantum navigation logged over 450 flight hours. The TFL-1 vision module costs under $100. LUCAS loitering munition costs $35,000. NATO approved over $40 billion for counter-drone defense. Israeli defense exports reached $19.2 billion in 2025. The article argues that the defense tech stack is fragmenting and hiring at every layer except the top, where consolidation is occurring.