Justin Fanelli, the U.S. Navy’s chief technology officer, is updating the department’s list of technology priorities. The document, vetted by venture investors, outlines five key areas: applied AI, quantum information science, advanced networking, electromagnetic spectrum operations, and digital engineering.
The Navy spends approximately $150 billion annually. While most procurement follows traditional channels, the department is increasingly focusing on co-investment. This strategy involves supporting companies alongside private capital rather than funding early-stage research directly.
The Navy now primarily targets companies at the Series D through F stages. Recent contracts include a $562 million deal for the MQ-25 Stingray autonomous refueling drone. Other partners include Armada for edge compute hardware, Gecko Robotics for inspections, and Domino Data Lab for machine learning.
Fanelli noted that procurement decisions are handled by a small source selection committee to ensure a merit-based process. He emphasized that successful technology adoption often depends on a tool’s ability to replace existing, funded systems within the Navy’s long-term planning cycles.
