American defence technology company Anduril’s CEO, Brian Schimpf, believes the nature of modern warfare has changed significantly. He noted that economic disruption is increasingly becoming a primary objective in modern warfare. Speaking at Fortune’s Brainstorm Tech conference in Aspen, Schimpf said modern conflicts are no longer focused mainly on destroying military assets but on targeting the infrastructure that keeps economies running.“The economic warfare that is effectively the Strait of Hormuz, this is the new normal of what these conflicts are going to look like. The US and Israel did something like 10 times as many strikes in the first month of the war as they did in the entire Gulf War. This is the new normal of what these conflicts are going to look like,” Schimpf said.According to Schimpf, assets such as data centres, oil refineries and critical shipping routes have become key targets in modern conflicts. He argued that the rise of relatively inexpensive drone technology has made it easier to disrupt economic activity at scale.
Anduril CEO Brian Schimpf on how supply chains are becoming a strategic concern
Schimpf argued that the US faces a unique challenge because of its economic ties with China. He said, “It’s essentially impossible to inflict economic pain on China without catastrophic economic pain on the US.”He also warned that supply chain vulnerabilities have become a major national security issue. As an example, Schimpf pointed to the pace at which military resources can be consumed during conflicts. He said the US used roughly 850 Tomahawk missiles over four weeks during the conflict with Iran, while replenishment rates had previously been much lower.To address such challenges, Anduril is looking beyond weapons manufacturing and focusing on access to critical raw materials. He added, “We’re looking at how do we secure supply of germanium years out.”Schimpf also highlighted that China has spent years strengthening its position in critical mineral supply chains, including rare-earth magnets and copper-related materials, thereby creating dependencies that could affect future technology and defence industries.The Anduril CEO also commented on the rising valuations in the defence technology sector, with some companies valued at dozens of times their projected revenue.“I do think there is a bit of a bubble,” Schimpf said, arguing that companies pursuing high valuations may face increasing pressure to maintain growth expectations. While Anduril has frequently been linked to a potential stock market listing, Schimpf said the company is not in a hurry to go public.“Right now, we’re in a hype-y time. We’re growing like crazy. Why would we go out right now? We don’t need to,” he continued.Schimpf also noted that it is common for companies to struggle after going public, whether amid heightened market enthusiasm or before achieving sustainable profitability. “For now, Anduril’s focus is on scaling its operations and solving long-term defence and supply chain challenges, not an immediate IPO,” he said.
