At the nexus of the business of government and private enterprises, a curious trend has emerged over the years—the Department of Defense’s penchant for partnering with eccentric billionaires to advance their strategic agendas. From the enigmatic Howard Hughes and the CIA’s Project Azorian to contemporary collaborations with figures like Elon Musk and Palmer Luckey, the intersection of wealth, innovation, and military might has woven a fascinating story and changed the course of history.

Privateers and Visionaries during the American Revolutionary War

During the American Revolutionary War, privateers—private individuals or entities authorized by the government to engage in maritime warfare—played a pivotal role. Figures like Robert Morris, a wealthy merchant and financier, leveraged their personal fortunes to fund naval operations critical to the success of the fledgling Continental Army forces under the command of General George Washington.

Beyond the infusion of personal fortunes, Morris exemplified a visionary spirit, strategically navigating the complexities of maritime warfare. His contributions extended beyond mere financial backing, as he actively facilitated the coordination of naval operations crucial to the success of the fledgling American forces. This dynamic synergy between private wealth and revolutionary foresight not only underscored Morris’s commitment to the cause but also underscored the pivotal role that unconventional partnerships played in laying the groundwork for the nascent nation’s independence.

Transition to the Civil War era, when industrial magnates became essential allies to the Union and Confederate armies. Figures like Andrew Carnegie and J.P. Morgan, with their vast fortunes and industrial prowess, contributed significantly to the war effort. Carnegie’s innovations in iron and steel manufacturing and Morgan’s financial acumen played crucial roles in reshaping military strategies. These industrialists became not only financial backers but architects of technological advancements that shaped the trajectory of the Civil War.

Howard Hughes and the Cold War

Delving into the more recent past, one cannot ignore the alliance between the eccentric aviation magnate Howard Hughes and the Central Intelligence Agency (CIA). Hughes, known for his eccentricities and aeronautical genius, found himself entangled with the covert world of intelligence during the Cold War. The CIA, seeking to salvage a sunken Soviet submarine, engaged Hughes to construct the Glomar Explorer, a vessel shrouded in secrecy. This unprecedented collaboration marked the beginning of a trend where unconventional partnerships between private visionaries and defense agencies became more than a mere anomaly. 

In the 1980s, billionaire influence on defense and technology was shaped by the Reagan-era military buildup and the rise of Silicon Valley’s high-tech entrepreneurs. Massive procurement spending under programs like the Strategic Defense Initiative (“Star Wars”) and Next-Generation missile warning satellites created opportunities for wealthy industrialists and emerging tech magnates to align their fortunes with national security priorities. Defense contracts flowed into aerospace, satellite, and semiconductor firms, fueling innovation in microwave electronics, computing, and communications.

Billionaires and corporate leaders leveraged this moment to expand their influence: they were not only financiers but also gatekeepers of cutting-edge technologies that the Pentagon urgently needed. Their capital and vision helped accelerate flexible specialization in defense industries, while government demand ensured steady growth. By the late 1980s, however, as Cold War tensions eased and procurement slowed, many of these firms faced challenges translating specialized defense capabilities into commercial markets. The era demonstrated how concentrated wealth and entrepreneurial leadership could amplify U.S. defense modernization, embedding billionaire influence deeply into the trajectory of Cold War strategy and technological innovation.

Fast-forward to the present, and the relationships between billionaires and the Department of War remains as robust as ever. Today’s defense landscape is defined by the convergence of private capital, advanced technology, and national security imperatives. Billionaires are not only financiers but also direct participants in shaping war‑fighting capabilities: Elon Musk’s SpaceX and Starlink underpin battlefield communications and missile defense architectures; Larry Ellison’s Oracle cloud forms the backbone of CJADC2 and JWCC; Peter Thiel and Alex Karp’s Palantir drive AI‑enabled targeting through Project Maven; and Palmer Luckey’s Anduril leads the charge in autonomous combat aircraft and drone swarms under the Replicator initiative.

CAPTION: America Has The Winning Hand

X-Axis — Commercial Momentum & Deployment Velocity
Y-Axis — Operational Criticality & Strategic Impact

Methodology: Scores are derived from a structured blend of open-source DoD acquisition data, contracting actions, technical maturity assessments, investment patterns, customer-demand signals, completeness-of-vision indicators, and the analyses produced by staff supporting Congressional defense & intelligence committees.

Beyond these marquee names, venture capitalists like Marc Andreessen and Reid Hoffman channel billions into defense startups building uncrewed ships, AI pilots, and resilient cyber infrastructure. The result is a defense ecosystem where private wealth accelerates innovation cycles, compresses procurement timelines, and embeds billionaire influence directly into the operational fabric of U.S. war‑fighting domains. This dynamic mirrors the Cold War era but with far greater speed and technological reach, ensuring that the line between private enterprise and state power is thinner than ever.

Palmer Luckey: The Prototype of the New Defense Tech Founder

Palmer Luckey’s Anduril Industries represents the Silicon Valley model applied to warfare—aggressive development cycles, private capital, autonomous systems, and modular hardware/software integration.

Key developments (2024–2025):

• Reached $30B valuation after new funding in mid-2025
• Awarded a 10-year, $642M U.S. Navy contract for counter-drone systems
• Developed autonomous towers and next-generation border surveillance
• Competing directly with Boeing, Raytheon, and Lockheed in unmanned systems
  
  Luckey is arguably the face of a new kind of arms magnate—one who does not build aircraft carriers or nuclear submarines, but instead dominates the autonomous battlespace in a new era of software defined warfare.

Elon Musk: Space Infrastructure & Battlefield Communications

Elon Musk, the maverick entrepreneur behind Tesla and SpaceX, has been a key player in shaping the technological landscape. Elon Musk’s companies occupy a unique intersection of commercial success and defense necessity.

• SpaceX provides the backbone of U.S. launch capability and dominates the commercial space sector.
• Starlink, originally commercial, became essential to Ukrainian military operations beginning in 2022. Usage has since expanded through government-purchased terminals, coalition funding, and DoD procurement—not simply personal “donations.”
• The Pentagon signed multiple agreements with SpaceX for satellite internet, launch services, and space-based infrastructure between 2020–2025.

Musk’s influence stems less from political access and more from ownership of systems that are strategically irreplaceable. Musk’s innovations, from electric powertrains to autonomous vehicles, have found applications beyond civilian use, contributing to the military’s pursuit of better mission outcomes through advanced technology.

Larry Ellison: Cloud Infrastructure for the U.S. Military

Oracle founder Larry Ellison has become a quiet but powerful builder of the U.S. military’s digital backbone.

• Oracle participated in the $9B Joint Warfighting Cloud Capability (JWCC) contract awarded to the four major U.S. cloud giants.
• The company supports DoD cyber modernization, data center consolidation, and AI-enabled logistics platforms.
• Palantir, OpenAI, and others often integrate with Oracle’s infrastructure—an overlooked but important detail.

Ellison is not a conventional “defense billionaire,” but Oracle’s infrastructure and political ties make him a central digital-era defense player.

Peter Thiel: Intelligence, AI, and Battlefield Analytics

Peter Thiel’s influence in defense is driven by Palantir Technologies, which provides:

• AI-driven targeting systems
• Logistics optimization
• Intelligence fusion platforms for all branches of the U.S. military
• Deployments across NATO, Israel, and coalition partners

Palantir’s TITAN system was awarded a major contract by the U.S. Army in 2023–2024 and continues expanding into frontline command-and-control.

Thiel is less involved in hardware and more in decision dominance—the software that turns data into precise military action.

The Financial Titans: Hedge Funds and Institutional Capital

A major update: it is no longer just billionaires themselves. Now, major financial institutions and hedge funds are pouring money into defense-tech, turning warfighting into a generalized investment category.

• Founders Fund, Thiel’s VC firm, is now one of the most influential defense-tech investors.
• Institutional investment into U.S. defense startups reached record levels in 2025.
• Financial firms such as BGC Partners and others are entering Treasury trading systems, cybersecurity, or dual-use AI platforms—often with government integration.

This shift signals that the military-industrial complex has expanded beyond manufacturing into financial markets and digital services.

The Rise of Defense-Tech Unicorns

A major trend in 2024–2025 is the explosive growth of defense startups, driven largely by geopolitical instability in Europe, Taiwan, the Red Sea, and the Middle East.

New trends include:

1. Record number of defense unicorns in 2025

As reported by Forbes in November 2025, more defense startups became billion-dollar companies than in any prior year—fueled by autonomous drones, AI targeting systems, cyber, and space-tracking companies.

2. Competition between new-tech firms and legacy contractors

Firms like Anduril, Palantir, and SpaceX now compete directly with Lockheed, Northrop, and Raytheon, particularly in:

• Counter-drone systems
• Space launch
• AI-enabled battle networks
• Autonomous surveillance
• Missile-tracking satellites

The Pentagon increasingly favors “non-traditional vendors,” accelerating a generational shift.

3. Emerging mega-projects: Space-based missile defense

Projects like “Golden Dome” or other next-gen missile-defense networks have drawn interest from SpaceX, Blue Origin, and other private firms—indicating that strategic deterrence is beginning to privatize as well.

Billionaire Non State Actor Enemies of the United States

In this digital age, state-sponsored hacking groups have become formidable players, intricately interwoven with the military strategies of nations. Notorious entities like Russia’s Fancy Bear and China’s APT10 operate on the frontlines of cyber warfare, executing covert operations that blur the lines between private entities, state interests, and defense agencies. These groups are not merely tools of espionage but wield significant influence over global affairs, exploiting vulnerabilities in the digital realm to achieve strategic objectives. 

Russia’s Fancy Bear, linked to the Russian military intelligence agency GRU, has left an indelible mark on the cyber landscape. From the Democratic National Committee (DNC) email hack to interference in elections, Fancy Bear has showcased the potential of cyber operations as a potent tool for advancing state interests. Similarly, China’s APT10, reportedly associated with China’s Ministry of State Security, operates with a focus on cyber espionage, targeting intellectual property and sensitive information. The seamless integration of these hacking groups into the military apparatus reflects a paradigm shift in warfare, where lines are blurred, and the battlefield extends into the virtual realm. 

The evolving landscape of cyber warfare raises critical questions about accountability, attribution, and the ethical implications of employing hacking groups as extensions of national power. The distinction between state-sponsored actors and billionaire non state actors becomes increasingly elusive, prompting concerns about the potential misuse of cyber capabilities and the collateral impact on civilian infrastructure. As hacking groups continue to play a pivotal role in shaping global conflicts, understanding and navigating this intricate web of actors is essential for nations seeking to secure their digital frontiers and protect against the ever-evolving threats in the digital domain.

Private Military Contractors: Eric Prince, Blackwater, and Unconventional Collaborations: 

The intersection of billionaires and military endeavors takes a distinctive turn when examining figures like Eric Prince, the founder of Blackwater, and the unconventional partnerships forged with the Pentagon. Eric Prince, a former Navy SEAL, ventured into the realm of private military contracting, establishing Blackwater as a controversial and influential player in the conflicts in Iraq, Afghanistan and elsewhere. Blackwater, initially founded as a private security and training company, evolved to become a crucial partner for the U.S. government, particularly the Pentagon. 

Eric Prince’s collaboration with the Pentagon unfolded against the backdrop of the post-9/11 era, marked by the wars in Iraq and Afghanistan. Blackwater, initially tasked with providing security services for U.S. government officials and facilities, expanded its scope to include a range of military support functions. This included roles such as logistics, training, and even direct involvement in combat operations. The unconventional nature of this collaboration stirred debates about the outsourcing of military functions to private entities and raised questions about accountability, oversight, and the ethical implications of privatizing war. 

One of the most notable instances of Blackwater’s involvement was the Nisour Square massacre in Baghdad in 2007, where Blackwater contractors were implicated in the deaths of 17 Iraqi civilians. The incident sparked international outrage and intensified scrutiny on the use of private military contractors in conflict zones. Eric Prince’s close ties to influential figures in the U.S. government and his ability to navigate the complex web of military contracts highlighted the evolving landscape of defense partnerships. 

The relationship between Eric Prince, Blackwater, and the Pentagon underscores the malleability of military alliances in the contemporary era, where private entities can play a pivotal role in shaping military strategies. It also raises pertinent questions about the accountability mechanisms for private military contractors, the potential for undue influence, and the fine line between national security interests and profit-driven ventures. The legacy of Eric Prince’s collaboration with the Pentagon serves as a cautionary tale, prompting ongoing discussions about the role of private military contractors in modern warfare. 

CAPTION: This image of an Iranian launch site with blast damage tweeted by President Trump is believed to have come from a highly classified U.S. reconnaissance satellite known as USA 224. Source: Donald J. Trump Twitter account via AP 

The Political Billionaire – Donald Trump’s Influence: 

The “Billionaires at War” story would not be complete without acknowledging the political billionaire, Donald Trump. As the 47th President of the United States, Trump’s impact on defense strategies and international relations was unprecedented. His unorthodox approach to governance and reliance on private-sector expertise, often leveraging his own business acumen, introduced a new chapter in the intersection of wealth and military affairs. 

Trump’s administration saw a notable increase in defense spending, emphasizing modernization and technological superiority. Notably, figures from the defense industry found themselves in influential positions within his cabinet, exemplifying the fluidity between private enterprise and public service. The infusion of business-oriented perspectives and the prioritization of national security interests reshaped the landscape, bringing the influence of billionaires directly into the highest echelons of political power. 

Yet, Trump’s presidency also sparked debates about the potential pitfalls of blurring the lines between personal business interests and matters of national security. The Trump era serves as a compelling chapter in the ongoing narrative of how billionaires navigate the complex terrain of warfare, leaving an indelible mark on the intersection of wealth, power, and the machinery of statecraft.

Howard Lutnick’s Role in Financial Policy

Howard Lutnick, CEO of Cantor Fitzgerald, has become an influential voice in the administration’s economic orbit. Public reporting confirms that Lutnick has participated in policy discussions and advisory conversations, particularly on financial markets and regulatory matters, though the administration has not released detailed accounts of his specific role. His presence nevertheless reflects the administration’s broader pattern of turning to senior leaders in the financial industry for guidance on economic strategy and capital-market policy.

Cryptocurrency and the Rise of Pro-Trump Billionaires

The Trump administration’s favorable stance on cryptocurrency attracted support from prominent figures in the crypto space, including the Winklevoss twins. Vice President JD Vance publicly endorsed Bitcoin’s integration into the U.S. economy, signaling a shift towards embracing digital assets. This alignment with crypto advocates reflects the administration’s broader strategy of leveraging emerging technologies for economic growth.

Steve Witkoff’s Dual Roles in Diplomacy and Business

World Liberty Financial (WLF) co-founder Steve Witkoff — a real-estate developer and longtime associate of Donald Trump — has been appointed by the administration as a special envoy for peace missions, including diplomatic engagement in the Middle East and proposals related to Ukraine-Russia conflict resolution.

At the same time, Witkoff still reportedly holds a financial stake in World Liberty Financial, which has drawn scrutiny from lawmakers and ethics experts. Because WLF is a private-sector cryptocurrency venture that appears to overlap geographically and contextually with regions where Witkoff is active diplomatically, critics argue that his dual roles highlight serious conflicts of interest.

The Steve Witkoff case underscores the broader complexity: when private business ventures — especially those with global financial reach — coincide with government-appointed diplomatic duties, the potential for conflicting incentives and compromised judgment rises dramatically.

Conclusion | Despite all these challenges, America still has the winning hand in the “Science War of the Century“.

From historical figures and industrial magnates of the American Revolution to the contemporary mavericks such as Elon Musk and Eric Prince, these billionaires have left an indelible mark on clandestine military operations and technological achievement on the battlefield . The convergence of wealth, technology, and power shapes unconventional alliances that transcend conventional boundaries, raising ethical questions and redefining the landscape, as with the Pentagons recently announced Replicator Initiative for unmanned systems in the anti-access area denial (A2AD) contested battlespaces of today’s great power rivalries. The story of billionaires at war unveils a complex dance between profit and patriotism, innovation and controversy, and the billionaires throughout history who have helped their militaries deliver the right war-winning capability precisely when and where it is needed.

Image Credits

{1} Billionaires at War | High Stakes and High Net Worth is an Expert Network report written by PWK International Managing Director David E. Tashji December 03, 2025. (C) 2025 PWK International. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, scanning, or otherwise—without the prior written permission of the author, except in the case of brief quotations embodied in critical articles, reviews, or academic work, or as otherwise permitted by applicable copyright law. 

“Billionaires at War” and all associated content, including but not limited to the report title, cover design, internal design, maps, engineering drawings, infographics and chapter structure are the intellectual property of the author. Unauthorized use, adaptation, translation, or distribution of this work, in whole or in part, is strictly prohibited. 

This report is a work of non-fiction based on publicly available information, expert interviews, and independent analysis. While every effort has been made to provide accurate and up-to-date information, the author makes no warranties, express or implied, regarding completeness or fitness for a particular purpose. The views expressed are those of the author and do not necessarily represent the views of any employer, client, or affiliated organization. 

All company names, product names, and trademarks mentioned in this report are the property of their respective owners and are used for identification purposes only. No endorsement by, or affiliation with, any third party is implied. 

{2} Financier of the revolution, English-born American merchant and politician Robert Morris (1734-1806). Morris was a member of the continental congress, a signer of the declaration of independence and founder of the Bank of North America. He was also the richest person in the thirteen colonies.

{3} 2nd November 1947: Howard Hughes (1905-1976) in the cockpit of his 219 foot flying boat HK-1, known as the ‘Spruce Goose’, on the day scheduled for testing when the plane made its only flight. Image Credit Keystone/Getty Images.

{4} Russian Hacker Group Fancy Bear. Credit Fancy Bear.

{5} Civilian Warriors by Erik Prince. In 1997, former Navy SEAL Erik Prince started a business that would recruit civilians for the riskiest security jobs in the world. As Blackwater’s reputation grew, demand for its services escalated, and its men eventually completed nearly 100,000 missions for both the Bush and Obama administrations. Credit Erik Prince.

{6} Satellite image tweeted by President Trump is believed to have come from a highly classified U.S. reconnaissance satellite known as USA 224. Donald J. Trump Twitter account via AP.

{7} President Trump. Photo Jim Watson/AFP/Getty Images.

Sources

“Anduril secures $30.5 billion valuation in latest fund raise” — Reuters, June 5, 2025 Investing.com

“Anduril raises $2.5B at $30.5B valuation led by Founders Fund” — CNBC, June 5, 2025 CNBC

“Defense-tech startup Anduril raises fresh capital, doubles valuation in 2025” — Investing.com summary of Reuters, June 5, 2025 Investing.com+1

“Mega funding round makes Anduril co-founder a billionaire” — Forbes, June 10, 2025 Forbes

“Anduril raises $2.5B at $30.5B valuation” — TechCrunch, June 5, 2025 TechCrunch

“Anduril becomes third U.S. supplier of solid rocket motors amid rising defense demand” — Reuters, August 5, 2025 Reuters

“Anduril beats competitors to secure $642 million U.S. Marine Corps anti-drone contract” — Business Insider, March 2025 Business Insider

“SpaceX’s defense-focused Starshield satellite internet business lands first contract” — TechCrunch, September 28, 2023 TechCrunch

“Pentagon awards SpaceX with Ukraine contract for Starlink satellite internet” — CNBC, June 1, 2023 CNBC

“Defense startup funding surge: aerospace & defense startups raised over $19 billion in 2025” — Business Insider, November 2025 Business Insider

“U.S. defense firm Anduril faces scrutiny after drone crashes” — Reuters, November 27, 2025 Reuters

“Founders Fund in talks to back defense firm Anduril at $28 billion valuation” — Reuters, February 7, 2025 Investing.com+1

“Anduril in talks to raise funding at $28 billion valuation” — Forbes, February 7, 2025 Forbes

“Anduril’s revenue, valuation & growth rate: company profile” — Sacra, 2025 data summary Sacra

“Anduril listed on CNBC Disruptor 50 for 2025” — CNBC Disruptor 50, June 2025 CNBC

“SpaceX wins first Starshield DoD contract — analysis of satellite-driven defense comms” — Tech analyst overview (same as #8) TechCrunch

“2025 surge in VC funding to defense tech startups — global investment trends” — Business Insider Trends Report (2025) Business Insider

“Shift in U.S. defense procurement: traditional primes vs. agile tech firms” — referenced in Reuters and industry-analysis reporting about Anduril and SpaceX Investing.com+1

“Pentagon’s adoption of commercial satellite internet for Ukraine and global operations” — CNBC report on Starlink deal + defense-comm context CNBC+1

“Rise of autonomous systems in U.S. defense modernization — drone, AI, counter-drone programs 2024–2025” — aggregated from multiple Anduril contract announcements (e.g. #7) and Reuters defense-tech coverage (e.g. #6) Reuters+2Business Insider+2

About PWK International

PWK International provides strategic national security consulting and advisory services to a global portfolio of clients, including hedge funds, financial analysts, investment bankers, technology startups, private corporations, law firms, non-profits, foreign governments, embassies, defense attachés, and humanitarian aid organizations.

With direct experience inside the U.S. Government and the national security enterprise, PWK International delivers clear-eyed insights on emerging technology, cognitive security, cyber defense, data visualization, mission systems engineering, and the business of modern warfare. We help clients navigate complexity, anticipate risk, and capitalize on strategic opportunities across the defense and intelligence landscape. PWK International – Your Mission, Assured.