The Iran war is redefining modern combat for the U.S. and driving demand for lower-cost tech.

It’s the exact situation Defense Secretary Pete Hegseth warned against a few months ago.

“We cannot afford to shoot down cheap drones with $2 million missiles,” Hegseth said in December. “And we ourselves must be able to field large quantities of capable attack drones.”

Two days into the war, the U.S. used up a reported $5.6 billion in munitions. Meanwhile, Iran has wreaked havoc on military bases, tourist centers and data centers used by America’s largest tech giants with swarms of low-cost Shahed drones that cost between $20,000 and $50,000, according to public estimates.

This is the moment defense tech and Silicon Valley have been waiting for.