The global arms race has a new currency, and it’s not measured in warheads. The world’s largest military powers are collectively funneling more than $2 trillion into AI, drones, hypersonic weapons, and satellite systems, according to Bloomberg. The US alone has pledged roughly $1.5 trillion toward these future battlefield technologies.

The Pentagon’s AI spending hits a record

The Department of Defense’s fiscal year 2026 budget includes $13.4 billion earmarked for AI and autonomous systems. That’s the largest single-year defense AI investment ever recorded.

Anduril Industries, the defense startup founded by Oculus creator Palmer Luckey, raised $5 billion in May 2026. That round pushed the company’s valuation to $61 billion. The company builds autonomous drones, surveillance towers, and AI-powered command systems.

A three-way race with trillion-dollar stakes