Emerging Technologies in the Defense Market Is Experiencing Rapid Growth Quickly Becoming a Multi-Billion Dollar Revenue Opportunity
MarketNewsUpdates News Commentary
NEW YORK, Sept. 3, 2025 /PRNewswire/ -- A recent article by an industry leading law firm specializing in Government Contracts & Public Procurement revealed that the Other Transaction Authorities (OTAs) for emerging technologies in the defense market is predicted to continue to grow substantially in the coming years, saying overall spending on Other Transaction Authorities (OTAs) for emerging technologies in the defense market is experiencing rapid growth, with total Department of Defense (DoD) obligations reaching over $18 billion in fiscal year (FY) 2024. This rapid increase is driven by a greater DoD focus on rapidly prototyping and fielding innovative, non-traditional solutions for warfighters. The article continued: "Other transactions ("OTs" or "OTAs") are agreements with the federal government that, by definition, are not procurement contracts, grants, or cooperative agreements. They may take many different forms that vary by agency. Federal agencies authorized to award some form of OTs or OTAs include DoD, NASA, Department of Energy, DHS, TSA, FAA, the Department of Transportation, and certain components of HHS, such as NIH and BARDA. Each agency relies on its own statutory authority and internal practices that may impose limitations or affect the nature of the agreement. OTs are intended to be more flexible and quicker to award than traditional procurement contracts, and often they are used with new entrants to the government marketplace or in other situations where they may facilitate rapid adoption of novel technologies or investigation of new ideas." Active Companies leading the way in military & defense operations include VisionWave Holdings Inc. (NASDAQ:VWAV), Lockheed Martin Ventures (NYSE:LMT), Velo3D, Inc. (NASDAQ:VELO), NVIDIA Corporation (NASDAQ:NVDA), RTX Corporation (NYSE:RTX).
The recent article added: "The incoming Trump administration has sent many signals that it intends to ramp up the Department of Defense's use of nontraditional acquisition pathways to bridge the "Valley of Death" and bring innovative technologies to the warfighter. This is not a departure from any recent administration, but yet another acceleration of a common trend. Perhaps the most familiar and well‑demonstrated such pathway is DoD's Other Transactions (OTs) for prototyping projects and follow‑on production efforts. In the last decade, DoD's use of that authority has steadily grown from a few hundred OTs and less than $1 billion in obligations in FY15 to more than 5,000 OTs and $15.5 billion in FY23. Early reports for FY24 indicate nearly $18 billion in OT obligations. Defense contractors need to be armed with reliable legal resources as they navigate this relatively new and evolving legal landscape. That is why we are compiling here our DoD OTs Desk Reference, with an infographic answering common questions and links to our many writings on the rules and risks of contracting through OTs. Bear in mind, although these references often focus on DoD Prototype OTs, several non-DoD agencies—including NASA, NIH, BARDA, DHS, TSA, and others—have some form of other transaction authority of their own. These agencies issue a variety of other transaction agreements (OTAs) that are likewise exempt from procurement laws and regulations, but are not subject to the same eligibility or other legal requirements of DoD Prototype OTs."
VisionWave (NASDAQ:VWAV) and AIPHEX Launch JV to Deliver Combat-Proven Defense & Space Technologies - VisionWave Holdings Inc. ($VWAV), ("VisionWave" or the "Company") today announced the formation of a Strategic Joint Venture with AIPHEX LTD, an Israel-based defense technology company, together with GBT Tokenize Corp. and GBT Technologies, Inc. The new entity, incorporated in Nevada as a limited liability company (the "JV"), is designed to accelerate the development, commercialization, and deployment of advanced defense and space technologies, with a mandate to pursue key U.S. and international defense contracts.
The Nevada-based joint venture, valued internally at approximately $5 billion, unites VisionWave's Evolved Intelligence™ and autonomous aerial platforms with Israeli partner AIPHEX's combat-validated multi-physics AI and autonomous missiles technologies, alongside contributions from GBT Tokenize and GBT Technologies, to commercialize highly classified defense and space-grade projects.
Agreement Highlights
- Ownership Structure: VisionWave and AIPHEX will each hold 46.76% of the JV, while Tokenize and GBT will hold 6.08% and 0.40%, respectively.
- Internal Value Framework: Equity allocations are based on an internal $5.0 billion valuation framework, used solely for equity allocation purposes.
- Contributions:
- Tokenize: RESTRICTED 897,102 shares of VisionWave common stock and an intellectual property portfolio comprising 12 granted U.S. and international patents in semiconductors, photonics, and AI, with a draft independent valuation of approximately $300 million.
- GBT: RESTRICTED 2,020,500 shares of VisionWave common stock.
- VisionWave: Its proprietary Evolved Intelligence™ (EI™) portfolio, including, RF-to-image sensing, multi-modal fusion, and multi-domain autonomy capabilities.
- AIPHEX: Israeli-developed Neuromorphic 4D Radar and Multi-Physics AI, together with a confidential set of defense projects.
- Term: Seven years, renewable, with automatic termination if no revenue is generated from designated projects within the first 12 months.
Strategic Mission & Project Pipeline - The JV's mission is to create a sovereign, high-impact platform capable of delivering large-scale defense and space-grade programs with speed and precision. By combining VisionWave's Evolved Intelligence™ — a scale enabler for multi-domain operations across air, land, sea, and orbital systems — with AIPHEX's combat-validated Multi-Physics AI technologies, and reinforcing the platform with Tokenize's and GBT's IP and equity contributions, the JV is positioned to compete for transformational opportunities.
As disclosed in the 8-K, the parties have also executed a confidential letter agreement identifying 11 specific "Designated Projects" that are already in advanced stages of negotiation, along with 13 additional "Background Projects" where discussions with third parties are underway. While details remain confidential due to their sensitive nature, these projects represent the scale and strategic importance that the JV is structured to address.
Leadership Commentary - Noam Kenig, Chief Executive Officer of VisionWave Holdings, stated: "This joint venture is about scale and execution. By combining VisionWave's Evolved Intelligence™ technologies with AIPHEX's Israeli radar and multi-physics expertise, and incorporating Tokenize's independently valued $300 million patent portfolio, we are seeking to create a platform to pursue large-scale defense and space contracts. We are aligning resources and technology to compete at the scale of megaprojects that will define the future of defense."
Dr. Moshik Cohen, Chief Executive Officer of AIPHEX, said: "Our combat-validated multi-physics autonomy platform proves to be the decisive layer for defense superiority—surpassing the limits of human operators and legacy technologies. Together with VisionWave, we seek to will deliver sovereign, software-defined systems that scale to confront the hardest defense challenges of today and outpace the threats of tomorrow."
About Dr. Moshik Cohen - Dr. Moshik Cohen is a world-leading rocket scientist, defense technologist, and business builder with 25+ years at the nexus of science, technology, and national security. A former Israeli Air Force officer and senior defense innovator, he pioneered radar-seeker and autonomy architectures fielded across multi-billion-dollar air- and missile-defense programs. In industry, he built and scaled global semiconductor businesses, delivering multi-tens-of-billions in lifetime revenue with platforms deployed in over one billion vehicles. He has authored dozens of peer-reviewed publications in top journals and holds numerous patents spanning sensing, nanoplasmonics, AI, and autonomy. A 360° leader—CEO, operator, and team builder—he has led complex programs with U.S. and allied governments and top defense primes. He champions sovereign, original breakthroughs in multiphysics AI, lightspeed hyperscale semiconductors, and quantum nuclear fusion—delivering decisive global impact at scale.
All valuations referenced in this press release, including the $5.0 billion internal valuation framework for the joint venture and the approximately $300 million draft independent valuation of the intellectual property portfolio contributed by GBT Tokenize Corp., are internal estimates prepared solely for the purpose of allocating equity interests among the joint venture parties. These valuations do not represent formal appraisals, market values, or assessments by independent third parties (except as explicitly noted for the draft valuation), and should not be relied upon for any other purpose, including but not limited to making investment decisions, evaluating the financial condition or prospects of VisionWave Holdings, Inc., or trading in its securities. Investors are encouraged to consult the Company's SEC filings and seek advice from qualified financial advisors before making any investment decisions. Further information with respect to the join venture can be found in a Form 8-K Current Report filed by VisionWave on August 26, 2025: https://www.sec.gov/ix?doc=/Archives/edgar/data/0002038439/000173112225001174/e6807_8-k.htm
Continued… Read this full release and additional news for VWAV by visiting: https://finance.yahoo.com/quote/VWAV/news/
Other recent developments in the military/defense industries include:
mPower Technology, Inc., the leader in flexible solar power for space, recently announced a strategic investment from Lockheed Martin Ventures (NYSE:LMT), the venture arm of Lockheed Martin Corporation. The investment is an add-on to mPower's recent Series B funding round, bringing total Series B funding to over $24 million.
This capital will further accelerate mPower's ability to scale production of its DragonSCALES™ solar modules. DragonSCALES provides an industry-leading flexible, resilient, and cost-effective solution for solar power in space, enabling new design possibilities for space missions.
"We are honored to welcome Lockheed Martin Ventures as a strategic investor," said Kevin Hell, president and CEO of mPower Technology. "Lockheed Martin brings deep mission expertise and a bold vision for the future of space and national defense. Their support is a validation of our role in enabling rapid, scalable, and cost-effective solar power across the new space economy and in support of U.S. security priorities."
Velo3D, Inc. (NASDAQ:VELO), a leader in additive manufacturing (AM) technology known for transforming aerospace and defense supply chains through world-class metal AM, recently announced its participation in a U.S. Army Combat Capabilities Development Command Aviation & Missile Center (DEVCOM AvMC) and Manufacturing & Sustainment (M&S) program funded initiative. The effort is focused on advancing high-throughput, cost-effective additive manufacturing processes for Aluminum CP1 to support defense applications.
Velo3D is collaborating with RTX Corporation (NYSE:RTX) and the Raytheon Technologies Research Center (RTRC) to develop an optimized laser powder bed fusion (L-PBF) process for Aluminum CP1 that supports the U.S. Army's Integrated Air and Missile Defense (IAMD) modernization priorities. These include system agility, affordability, and operational readiness. The effort leverages Velo3D's large-format AM technology to develop a repeatable process capable of scaling across programs and facilities.
Defense startup SkyDefense LLC recently launched an autonomous combat drone designed to take out enemy drone swarms at a much lower cost than traditional weapon systems. The company calls it the CobraJet — an uncrewed aerial vehicle (basically, a drone) designed for C-UAS (counter-unmanned aircraft system) missions. The drone combines Teledyne FLIR electro-optical and infrared sensors that do not contain restricted foreign parts, and NVIDIA Corporation (NASDAQ:NVDA) AI chips, allowing the drone to process the information that it sees with onboard sensors.
The CobraJet is also equipped with its proprietary Visual Realtime Area Monitoring (VRAM) system, allowing ground commanders to monitor the drone during autonomous operations and communicate with and control it, if needed. This gives its operator the option to let it operate on its own during reconnaissance, patrol, and identification, but still have a human making decisions when required. It can also use the same technology to communicate with other CobraJet units, allowing them to act together as a single entity to protect against enemy swarms.
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