Why the Military Is Key to AI Fortunes

Written by Jason Simpkins
Posted August 11, 2023

AI is all the rage this year, and there’s no question it’s going to be a huge element of future technology, both mainstream and military.

But it’s also not as new as you might think. 

This trend didn’t just pop up overnight. 

This technology has been in development for decades.

And most of that development has occurred right out in the open.

Just for example…

Do you remember IBM’s “Watson,” the supercomputer that competed on Jeopardy?

Watson IBM Jeopardy

That was an AI construct and it was paraded right out in front of everybody. 

The same is true of “Deep Blue” the supercomputer that beat world chess champion Garry Kasparov in a pair of six-game chess matches in 1997.

Still, even that was the result of decades of work — much of it done by the military. 

Indeed, to really find the roots of AI, you have to go back to Alan Turing.

Turing cracked the Nazis’ Enigma machine encryption during WWII. And in 1950, Turing suggested that computer programs could be taught to think like humans.

Thus he invented the “Turing test,” which is used to gauge a computer’s ability to imitate human intelligence.

That test is still used today.

The term “artificial intelligence” itself was coined by John McCarthy in 1956, and the phrase “machine learning” came along in 1959.

Coincidentally, also around that time, DARPA was created by the military to research advanced technology. 

And from that point on, AI became a key focus of our military. 

In 1991, DARPA developed the Dynamic Analysis and Replanning Tool (DART) — an AI program that could schedule the transportation of supplies or personnel and solve other logistical problems. 

That program saved the military millions of dollars as soon as it launched.

Fast-forward to today and the Pentagon has a $1.8 billion budget strictly for AI programs and at least 685 ongoing AI projects.

Project Maven, for instance, is an AI program that autonomously scours massive amounts of video and images collected by satellites and drones and identifies potential threats and military targets.

That launched in 2017 and has continually broadened since then.

Then, there’s Skyborg — an effort to pair jet fighters with autonomous drones that act as wingmen. 

Flying alongside their larger companion, these drones can draw hostile fire, conduct reconnaissance, identify targets, jam enemy defenses, and even deploy their own ordnance.

Skyborg

They can also act as a decoy, drawing enemy fire away from the far costlier fifth- and sixth-generation jets.

Meanwhile, the Navy has deployed an autonomous submarine hunter.

It’s capable of finding and tracking vessels that would otherwise be invisible to radar and sonar. And because it’s unmanned, it can stay at sea longer than crewed vessels performing the same task.

Also in the works is a joint artificial intelligence center meant to oversee and manage all of the military’s AI efforts.

So truly, the U.S. military has been one of the biggest fountains of AI development ever since its inception. 

And its rapidly expanding slate of modern AI projects and initiatives continues to drive innovation in the field. 

Not to mention huge stock gains. 

Indeed, I’ve made a bundle by cashing in on the companies that have been teaming up with the Pentagon to advance AI development. 

For example, I recently hit a 139% gain in my Secret Stock Files investment service by investing in a company that helps the Air Force conduct preventative maintenance on its fleet of fighter jets. 

Another AI stock I recommended has been helping Ukraine pioneer a new type of warfare with its analytics tools.

And still another provides high-tech AI simulation training software that lets soldiers interact with virtual combat environments.

These are the types of stocks and technologies I’m constantly investigating at Secret Stock Files

In fact, my latest find is probably going to be my biggest yet, since it makes the rugged supercomputers that are necessary to run complex AI algorithms on the fly. 

So make sure you check out my full report on that company here.

Fight on,

Jason Simpkins Signature

Jason Simpkins

follow basic@OCSimpkins on Twitter

Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of Wall Street's Proving Ground, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

Want to hear more from Jason? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on. 

*Follow Outsider Club on Facebook and Twitter.

Banking Crisis Just Kicked into High Gear