On Oct 13, Anduril Industries, an American defense technology company, unveiled its "Eagle Eye" headset at the Association of the United States Army (AUSA) annual meeting as part of the Army's Soldier Borne Mission Command program. The system — offered in four variants — integrates multiple augmented-reality devices designed to provide timely, accurate battlefield information, enhance soldiers' situational cognition, and improve both offensive and defensive decision-making. This unveiling highlights the growing trend of digital technology firms entering the US defense market, with Anduril emerging as one of the most typical representatives of this shift.

Over the past decade, the familiar concept of the "military-industrial complex" — coined by President Dwight D Eisenhower in 1961 — has evolved into a new hybrid: the "digital-military-industrial complex". This variant revolves around firms that specialize in data, artificial intelligence and digital platforms, as well as startups deliberately positioned as defense-oriented technology providers. These entities are collaborating closely with the US military and traditional defense contractors to accelerate the digitization and intelligent transformation of military capabilities. Some analysts warn that this digital variant could drive large-scale US intervention abroad — potentially becoming a "new war machine".

Traditional defense giants such as Lockheed Martin, Raytheon, Northrop Grumman and General Dynamics, now face intense competition from two kinds of digital players. The first category comprises big tech corporations — Microsoft, Amazon, Google, Oracle, HP, Dell, Motorola, IBM and others — many of which have secured sizable Pentagon contracts to supply advanced systems software and cloud, data and AI services. The second category consists of venture-backed startups, often funded by Silicon Valley investors that focus on AI, autonomy, sensing and networked command-and-control systems tailored to military and intelligence needs. These startups market "national security" as a core product attribute in pursuit of a share of US defense procurement.

Examples are plentiful. Anduril, founded in 2017 by investors including Palmer Luckey and Peter Thiel, now supplies autonomous systems that combine AI and robotics — from unmanned aerial systems (UAS) and counter-UAS solutions to semi-portable autonomous surveillance systems and networked command and control (C2) software. Palantir, founded in 2003, has long partnered with government agencies and has significantly expanded military collaboration in recent years. Its market capitalization soared in 2024, exceeding the combined valuations of several legacy defense giants. Other comparable companies include Rebellion Defense (AI military applications), Shield AI (autonomous flight and navigation), Skydio (drones for military and law enforcement), HawkEye 360 (satellite-enabled radio-frequency monitoring), Epirus (directed-energy and electromagnetic defense), and various private ventures targeting dual-use space capabilities.

At first glance, Silicon Valley's deepening ties to the Pentagon may appear anomalous. For years, Silicon Valley projected liberal, antiwar values, resisting the militarization of its technologies. Yet the region's militarized trajectory represents a return to its historical roots rather than a novel development. Since the 1950s, US federal agencies — particularly the Defense Advanced Research Projects Agency (DARPA) — decisively shaped the development of transformative technologies like the Internet and GPS.

Traditional defense firms also played formative roles in Silicon Valley's rise. Although these ties waned after the Cold War, in recent years, major tech figures have publicly embraced national-security collaboration. In 2019, Amazon's Jeff Bezos publicly urged big tech to show greater patriotism and actively participate in defense cooperation with the Department of Defense. In June 2025, the Army formalized the fusion of tech expertise and military innovation by appointing four tech leaders as reserve lieutenant colonels to its newly established "Detachment 201", also known as the "Executive Innovation Corps" — a symbolic merger of commercial tech leadership and military roles.

Three drivers underpin the rise of the digital-military-industrial complex. First, the advent of AI has made integration of commercial data and algorithms essential to military modernization. The Defense Innovation Unit (DIU), established by the Pentagon in Silicon Valley in 2015, channels venture-style procurements to accelerate conversion of commercial technologies for defense.

By September 2022, DIU had awarded roughly $1.2 billion in contracts to over 320 startups, and it was elevated in 2021 to report directly to the Secretary of Defense. Second, escalating global tensions such as the Russia-Ukraine conflict and turmoil in the Middle East have heightened US urgency to field technologies proven effective on modern battlefields. Third, China's rapid advances in AI have fueled US concerns, prompting American policymakers to increasingly frame the competition as, in essence, an AI arms race.

Operationally, the digital-military-industrial complex differs from the traditional procurement model. Legacy contractors depend on large, long-term, bureaucratic contracts focused on platform performance. Tech firms, by contrast, move with commercial speed and market leverage, adapting civilian technologies for defense use — a model that strengthens their bargaining power and reduces regulatory constraints. To engage these new actors, the Department of Defense has adopted more agile acquisition mechanisms — notably "Other Transaction Agreements" (OTAs) — and established accelerators and programs to welcome nontraditional vendors.

In short, the US defense ecosystem is undergoing structural change: from a Washington-centered "contractor + Pentagon" system to a Silicon Valley-centric network combining venture capital, tech firms, legacy defense primes and the military. This emerging "Silicon Valley-Pentagon axis" is reshaping the tools, logic and ethical contours of warfare. The trend may intensify great-power rivalry and arms races, lower the threshold for war, obscure responsibility, and accelerate the militarization of technology — posing new threats to global peace and security.

Whether Silicon Valley will ultimately evolve into a cradle for militarism, and whether the digital-military-industrial complex will operate as a fully activated "war machine", are questions that deserve the vigilance, concern, and reflection of people worldwide.

Shi Bowei is a lecturer from the Department of Political Science at the Party School of Zhejiang Provincial CPC Committee. The views don't necessarily reflect those of China Daily.

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