Vijhai Grayan | Cyber Tech and Space Fellow
Image sourced from Giorgio Trovato via Unsplash.
For decades, Silicon Valley and the global tech industry purported to innovate for social good, environmental sustainability, and the democratisation of technology. The industry's pioneers and venture capitalists often shied away from investments in defence and weapons development, viewing them as antithetical to the ethos of empowering individuals and improving lives. However, in 2024, a seismic shift occurred: Y Combinator, the world’s most influential venture capital accelerator responsible for launching companies like Airbnb, Reddit, and DoorDash, funded its first defence startup. This company, Ares Industries, is focused on developing low-cost cruise missiles, a clear departure from the Valley’s traditional commitments. The decision is symbolic of a broader, unsettling trend where tech startups and established tech companies — once committed to strong principles in the public interest — are increasingly enmeshed in the machinery of war.
The Growing Role of Technology Companies in Modern Warfare
What makes Silicon Valley’s pivot towards defence technology so disconcerting is not just its divergence from its early ideals but its rebranding of military technologies as extensions of innovation for the public good. This shift not only erodes public trust but also raises critical ethical questions about the boundaries of technological progress and the extent to which it should serve national security agendas.
At the heart of this pivot lies an intensifying battle among some of the world’s most powerful technology companies — OpenAI, Google, Microsoft, and Amazon Web Services (AWS) — to secure lucrative Pentagon contracts. This competition underscores the growing role of artificial intelligence, cloud computing, and machine learning in modern warfare.
Google’s involvement in Project Maven, sparked internal protests from employees who argued the project was incompatible with the company’s values. Although Google eventually withdrew from Project Maven, it has since pursued other government contracts in the military sphere, including its USD$9 billion stake in the multi-cloud Joint Warfighting Cloud Capability (JWCC) program.
Recently, OpenAI partnered with the Pentagon to develop AI tools for cyber security and operational strategy. Similarly, Microsoft leveraged its augmented reality HoloLens technology for military applications under a $22 billion contract. These examples highlight how advanced technologies are fast becoming the backbone for modern warfare, and how Silicon Valley is meeting the increased demand.
A Global AI Arms Race
As President Trump announces USD$500 billion to build AI infrastructure for the U.S. and rescinds Biden’s executive order introducing AI development regulations, the balance between innovation and oversight becomes increasingly precarious, raising concerns about unchecked technological advancement and its implications for global security and ethical governance.
The funding of AI infrastructure and recission of AI regulations sets a precedent that other nations – such as China – could follow, potentially escalating the militarisation of technology globally. Chinese AI companies like DeepSeek are rapidly advancing AI models that may soon surpass U.S. counterparts, potentially paving the way for their use in military applications. While these innovations may enhance national security, they also carry significant risks, from enabling autonomous weapons to exacerbating surveillance states.
If left unchecked, the drive for profit and innovation could overshadow the ethical considerations necessary to ensure that technological advancements align with humanity’s broader values. The growing role of technology companies in warfare demands urgent dialogue, regulatory oversight, and a recommitment to the principles that once defined Silicon Valley.
A Call for Ethical Accountability
As Silicon Valley pivots towards defence, a lack of transparency and ethical governance looms large. Regulatory oversight is essential to ensure that technologies ethically deployed and governed. National governments and international organisations must play a proactive role in holding both tech firms and their financiers accountable for the downstream impacts of these technologies.
This accountability should include frameworks to:
Restrict the export of dual-use technologies: Many tools, including AI algorithms, have both civilian and military applications. Stricter controls, such as H.R. 5040, Export Control Reform Act of 2018 providing Presidential control over technology exports, are needed to prevent their misuse by authoritarian regimes.
Mandate ethical impact assessments: Technology companies with an annual turnover greater than $100 million should be required to evaluate and disclose the societal impacts of their technologies before deployment.
Prioritise transparency in defence partnerships: Partnerships with defence establishments must be transparent and subject to public debate, ensuring alignment with democratic values.
Toward a Stronger Global Dialogue
The rapid integration of tech startups into the defence sector necessitates a global dialogue that transcends parochial national or commercial interests. Organisations like the United Nations and World Economic Forum should spearhead discussions on establishing international norms for the ethical use of defence technologies. These norms should address emerging threats, such as autonomous weaponry, cyber warfare, and mass surveillance systems, while also providing pathways for innovation that align with humanity’s collective values.
The future of warfare is being written in code, not forged in steel. If society fails to scrutinise and regulate this transition, the consequences may be irreversible — not only for the ethics of warfare but also for the integrity of the tech industry itself. Policymakers, investors, and citizens must demand more from the companies shaping our future. The question is not whether technological progress should play a role in defence, but rather: at what cost, and with whose consent?
As we grapple with these challenges, we must ask ourselves: What kind of world do we want these technologies to create? The answer to that question will determine whether the tech industry fulfills its promise of empowering humanity or simply becomes another instrument of power and control.
Vijhai Grayan is the Cyber, Tech and Space Fellow for Young Australians in International Affairs. He is a lawyer at a leading Australian technology company and an MBA candidate at the University of Sydney, where he received the Future Leaders Scholarship. With expertise in law, cyber, and technology, he is passionate about the rapid evolution of technology, its profound impact on global society, and its transformative potential to reshape international affairs.
Our 2025 Cyber, Tech and Space Fellow is sponsored by .au Domain Administration (auDA). For more information, visit their website here.
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