Artificial intelligence has taken the world by storm, and after the rapid changes we saw in the theatre of war in Ukraine, global military powers are scrambling to stay one step ahead of the ever-evolving military landscape. With one eye on China, the Pentagon is looking at developing a substantial network of AI-powered technology, according to the Wall Street Journal. This includes air, land, and sea-based drones and autonomous systems, all powered by AI.
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While the systems are expected to be cost-effective, the expenditure by the Department of Defense could run well into the hundreds of millions, and more details from the Deputy Secretary of Defense are anticipated later today.
Over the years, China has amassed a vast arsenal at a rapid pace and is increasing its presence and geographical boundary rhetoric with its neighboring countries.
The multitude of capabilities being considered by the DoD includes logistics systems, autonomous drones and sensors that can monitor activities, and autonomous systems that can defend against incoming missile attacks.
China’s sea fleet already outnumbers that of the U.S., and it is also developing swarming capabilities. The Pentagon has requested an AI budget of $1.8 billion for fiscal 2024, and it’s safe to say the figure could climb much higher over the coming years.
Amid the rising Global defense spending, the iShares U.S. Aerospace & Defense ETF (ITA) and the Direxion Daily Aerospace & Defense Bull 3X Shares (DFEN) have gained 16% and 27.5%, respectively, over the past year.
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