Y Combinator backs its first defense startup, Ares Industries
Y Combinator’s backing of Ares Industries, a startup making cheaper, smaller cruise missiles, is prompting debate over the ethics and economics of venture-funded defense technology. Some see more agile defense startups as necessary to counter authoritarian regimes and modern threats, arguing that military strength and deterrence underpin today’s relative global peace. Others highlight U.S. interventionism, civilian casualties, and the risk of profit-driven weapons development, while also noting structural hurdles in defense procurement that may limit the success of new entrants.
Defense Spending, Threats, and “Defense” vs. “Offense”
- Some argue defense is a “growth industry”; others note US defense as % of GDP is historically low.
- Supporters say more defense innovation is needed to deter authoritarian states and avoid over‑consolidated contractors.
- Critics counter that the US is already “bellum paratum,” highly militarized, and often uses force offensively rather than defensively.
- Debate over whether cruise missiles can ever be truly “defensive,” with some saying it’s about use, not tech.
Ethics, Foreign Policy, and Democracy vs. Dictatorship
- Multiple comments highlight US involvement in coups and regime change (Latin America, Iran, Operation Condor) as evidence that US power isn’t always used to defend democracy.
- Others stress they still prefer a world led by imperfect democracies over authoritarian regimes.
- One view: democracies can eventually admit and compensate for wrongs (e.g., Japanese internment); counterpoint: even dictatorships sometimes repudiate past crimes.
War Crimes, Accountability, and International Law
- Concerns raised about lack of accountability for US war crimes, including legal shielding from international courts.
- Examples cited: drone strikes, lethal strikes programs, Yemen airstrikes linked to US/UK weapons, and laws enabling resistance to ICC jurisdiction.
- Defenders emphasize terrorists and hostile actors using civilians as shields; critics say this is overused to excuse civilian casualties.
Global Peace, Deterrence, and the UN
- One camp says the world is increasingly hostile; another claims it’s the most peaceful era ever.
- Credit for avoiding world wars is variously given to nuclear deterrence, UN institutions, or both; some call UN largely ineffective.
- Debate over whether Russia–Ukraine is a proxy war and whether Ukraine giving up nukes enabled invasion.
YC, Startups, and Defense Industry Structure
- Some see YC’s move into weapons as natural: huge, sticky budgets; inefficient incumbents; government spending rising as % of GDP.
- Others see it as technofascist drift and “working for warlords,” noting Silicon Valley’s long defense roots.
- Clarification that YC has funded defense-adjacent startups before; Ares is distinct for making actual weapons.
- An industry insider describes structural barriers for new defense firms: slow payments, reliance on a single (USG) customer, and procurement rules that favor big, waterfall-style contractors.
Technology, Drones, and Proliferation Risks
- Discussion of cheap cruise missiles/drones potentially creating a “conventional MAD” scenario.
- Some speculate Ares may be closer to low‑cost FPV drones than traditional cruise missiles.
- Worries about second‑order effects: exports to partners (e.g., Israel), use in conflicts like Yemen, and domestic militarization of police, though cruise‑missile use by police is seen as unlikely but not unthinkable.