🏎️Today is the Anduril 250 at Naval Base Coronado! ICYMI, this is not a typical left-turn oval race; it’s a winding 3.4-mile course around the naval base. While Anduril is the event sponsor and supporting No. 24, they aren’t the only defense tech company in the race today. No. 71 will be sporting Defense Unicorns livery, and we’ll be in their section rooting for them!

Rafael
Going Ballistic
The U.S. Air Force is requesting nearly $50M to kick-start a new Air-Launched Ballistic Missile (ALBM) program.
ALBM 101
An ALBM is exactly what the name implies: a ballistic missile launched from an aircraft rather than the ground. The launch platform's altitude and speed give ALBMs quite an energy advantage over their terrestrial counterparts.
While they are fast—think Mach 6-10—they are not considered hypersonics because they fly a high-arching, ballistic trajectory.
Skybolt
In the 1950s, the U.S. worked to field an ALBM, and the closest they got was the AGM-48 Skybolt.
Designed to launch from high-altitude B-52 bombers, the 38-foot, 11,000-pound, Mach 9 nuclear-tipped AGM-48 had a projected 1,000-mile range and 300-mile apex (that’s higher than the International Space Station).

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While promising, Skybolt encountered technological and budget issues and was ultimately shelved in 1962 when the Navy fielded the Polaris submarine-launched ballistic missile (SLBM).
Second Attempt
In the early 1980s, DARPA dusted off the ALBM concept again with the Joint Tactical Missile System (JTACMS). Initial contracts were awarded for surface and air-launched versions, but the Air Force left the effort in 1984. The program dropped the “Joint” and the missile went into service with the Army in 1991 as ATACMS. Yes, the Air Force once had plans for a fighter-jet-launched ATACMS (one competitor had an air-launched Patriot variant).

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Y2K Israel
In the 2000s, while the U.S. was anchored in the Middle East and China was getting into world trade, Israel was probably the only nation investing in ALBMs—though for a different reason.
Rafael’s Sparrow ALBMs were developed to be ballistic targets to test Israel’s defense systems.

Rafael
Designed to be launched from F-15s and F-16s, they come in 3-size versions: Black Sparrow, Blue Sparrow, and Silver Sparrow.

Rafael
The U.S. even looked into buying Sparrows in 2015 for U.S. system testing (which was opportunity #3 to have an ALBM).
In 2019, Rafael adapted Sparrow into an offensive weapon called Rocks; Sparrow-variant ALBMs have been used in combat in 2024 and earlier this year during Epic Fury.
In 2024, Israel’s IAI unveiled an ALBM called Air LORA. As the name implies, it’s adapted from the ground-launched LORA.

IAI
Russia and China
In recent years, Russia and China have both invested in developing ALBMs.
In 2022, China unveiled the YJ-21 air-launched anti-ship ballistic missile (ASBM), and last year it debuted the nuclear-capable JL-1 ALBM (adapted from the ground-launched DF-21).
What Now
While it looks like FOMO, the U.S. request for funding to field an ALBM does fill a void in the stand-off arsenal. ALBMs can complement cruise missiles and hypersonics with “unique trajectory profiles to address distinct target sets” in a way that is (hopefully) more producible and affordable.
Doing a clean-sheet design for a new weapon is the American way, but not always the best way.
If you haven’t picked up on all the precedents by now, the best approach is to buy an Israeli solution and adapt a ground-launched U.S. missile for an ALBM.
That’s an “and” — as in both efforts should be run in parallel. Here’s why.
Buying a limited number of Israeli ALBMs puts pressure on Seek Eagle, the program that characterizes and certifies things to fly off aircraft. It’s the biggest bottleneck to fielding air-launched weapons in the U.S. military. This draconian process normally takes years, needs to be resourced and modernized, and a ready-to-fly ALBM is a great forcing function (it could easily consume half of the $50M budget request).
Remember ATACMS and how there was an ALBM variant effort? Well, ATACMS is currently being replaced by the Precision Strike Missile (PrSM), which could be turned into an ALBM. OBTW, PrSM is already investing in the capabilities to hit relocatable land and moving maritime targets.
What’s old is new.
Time will tell how the U.S. ALBM effort takes shape, but it should absolutely be called Skybolt II.
In That Number
74 from 59
During the first 30-day sprint of the U.S. Army's "Right to Integrate" initiative, 74 systems from 59 companies were connected to Anduril’s Lattice software platform.
TRIVIA
On this day in 1913, 18-year-old Georgia "Tiny" Broadwick made history as the first woman in the U.S. to perform which aeronautical feat?
A) solo flight
B) aerial photograph
C) parachute jump

On the Radar

Northrop Grumman / GAO
Rocket Motor Bottlenecks. The Center for Strategic and International Studies (CSIS) issued a report warning that planned 2027 missile-defense interceptor buys will push the U.S. solid rocket motor (SRM) supply chain to its absolute limit. Accelerated by massive munition expenditures during recent operations, the report details how decades of industrial consolidation, complex subcomponent supply chains, and cyclical government demand continue to choke the Pentagon's ability to rapidly scale missile and interceptor production.
The Merge’s Take: This will not be solved by “just start more rocket motor companies” (see page 30 of the report), and simply adding capital doesn't instantly solve decades of atrophy. The underlying issues include stable commitments, acquisition authorities, policy reforms, a cascading supply chain that depends on a handful of critical minerals, and compounding processes that are highly regulated and unable to meet demand.

AI
GM + Lockheed Martin. General Motors and Lockheed Martin are partnering to scale manufacturing and expand production capabilities.
The Merge’s Take: Don’t confuse this with typical startup partnership news—these are behemoths of their respective industries. The partnership was facilitated by the Pentagon, and while what they will do is still TBD, the scale is something to keep an eye on: Lockheed is investing $9B over the next 4 years to modernize 20 facilities and scale munitions production, but GM has invested $9B into manufacturing and $7B more into R&D—just this year. Time will tell how that flows from GM into GM Defense, but Lockheed isn’t the only defense prime knocking on doors in Detroit. RUMINT is that L3Harris and RTX are also in discussions with GM.

U.S. Air Force
Air Force CCA enters production. The U.S. Air Force selected Anduril and General Atomics to build the military's first fleet of operational Collaborative Combat Aircraft (CCA) loyal wingman drones. The contracts cover the first 3 production lots, targeting a minimum of 150 airframes by 2030 at a sub-$30M unit cost. Concurrently, Anduril, Collins Aerospace, and Shield AI advanced in the next phase to compete for the mission autonomy software contract.
The Merge’s Take: This is a watershed moment for several reasons. Beyond the technological milestone of fielding AI-powered companion fighter drones, there is the way the competition and contracts are structured, the separation of hardware and software, and the government’s involvement in guiding the architecture to tie it all together. Individually, those are impressive feats—collectively, it’s transformative.
They Said It
“systemic constraints in the munitions industrial base, including limited production capacity, fragile supply chains, long-lead dependencies, and related production bottlenecks, may impair the ability of the United States to produce, sustain, and expand the availability of munitions, missiles, and equipment required for the national defense.”
— President Donald Trump, in a memo that invoked the Defense Production Act to shore up the munitions industrial base
Coincidence this happened the same time as the GM-Lockheed Martin partnership announcement?

Knowledge Bombs
Kratos completed an autonomous tractor-trailer cross-country with equipment for this weekend’s NASCAR race
REGENT completed building its 255,000 sq ft Seaglider factory
Dawn Aerospace raised a $25M Series B round for reusable spaceplanes
Mach Industries won a DIU contract for a large maritime strike aircraft
Palladyne AI won Army contracts for swarm software and mini-bombers
Nox Metals raised an $11.5M seed round to revitalize American metal production
Twenty raised a $100M Series B round for cyber warfare
MBDA unveiled a new long-range cruise missile
EQT is acquiring Exolaunch, a German space rideshare provider
HENSOLDT & Fire Point partnered to develop a ballistic missile defense system
Divergent won a contract to 3D print Tomahawk cruise missile structures
Lockheed Martin unveiled HIMARS FLEX, doubling the launcher's firepower
Unusual Machines invested $30M in Powerus (Trump-backed drone company)
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ANSWER
C) Parachute from an airplane. On June 21, 1913, strapped into a seat outside the cockpit, Georgia "Tiny" Broadwick became the first American woman to complete a parachute jump from a moving aircraft. Other notable things she did: trained male pilots in WWI on how to jump out of an airplane and is credited with doing the first planned free-fall, which was a mistake—she had an issue and essentially invented the rip cord and free-fall to separate her from being entangled on an aircraft tail. #badass

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