The Deep End #4
Simulating space on earth, solar trackers, and a win for nuclear energy
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Gone are the days when the U.S. called the shots.
Geopolitical history is often framed in terms of “poles,” with two or more forces shaping how the world works. The most striking example of bipolarity is the competition between the Soviet Union and the United States. I was born within a few weeks of the fall of the Berlin Wall, so I never experienced bipolarity. I’ve only known one major geopolitical force: the United States.
But the U.S. has real competition again; the poles are strengthening. Russia has gone from pretend democracy to full-scale autocracy and geopolitical aggression. We once celebrated China’s unprecedented growth and prosperity, now we condemn their human rights and economic abuses. They’ve grown in both power and hostility.
Maybe it’s patriotism, maybe it’s just good business, but American venture funds and startups are making themselves comfortable in the sectors that really matter in grand strategy: aerospace, defense, manufacturing, and infrastructure. Here’s an excerpt (paywall) from a recent TechCrunch article:
Just a few years ago, many investors thought that cutting a check for a defense-first startup was a proposition that simply didn’t make sense. The tides have clearly shifted: a16z is one of many firms that’s taken a stronger interest in defense and national security. PitchBook data supports this warming to defense tech. From January to October last year, VC-backed firms injected $7 billion into aerospace and defense companies, a massive growth that stands in sharp contrast to the relative sluggishness in other sectors. Some deals in recent months include Anduril’s $1.4 billion Series E; Shield AI’s $225 million Series E; and Vannevar Labs’ $75 million Series B.
Startups are working on big problems that used to be reserved for the Lockheeds and Raytheons of the world, and they’re not bashful about why they’re doing it: to make sure America remains geopolitically dominant. Looking at the most likely alternatives for global power, I have to say: I hope they succeed.
Here’s a roundup of what’s been going on in deep tech:
Astranis simulates space for its satellites
Bay Area-based Astranis built its own thermal vacuum chambers, which simulate the environment of space for its dishwasher-sized satellites. Cool video.
Solar hardware maker Nextracker scores $638M in 2023’s biggest IPO so far
Nextracker, a company that makes solar trackers, launched its initial public offering last week and did it the old-fashioned way — by growing revenue and profits in a manufacturing business. Nextracker sold 26.6 million shares of its Class A common stock at $24 apiece, at the higher end of the indicated range, giving the company a valuation of over $3.5 billion and raising $638 million in proceeds.
The Build-Nothing Country by Noah Smith
If we insist on continuing to be the Build-Nothing Country, our once-mighty middle class will sink into a genteel poverty, and someone else will build the future on the bones of our civilization.
California’s last nuclear power plant lives to see another day
Activists have a knack for shutting down nuclear power plants and replacing them with coal and natural gas plants. Diablo Canyon supplies 10% of California’s total energy (that’s carbon-free energy, people!) and so keeping the facility open is an easy win for the planet.
Joby flies towards 2025 commercial launch with final assembly of eVTOL
Electric vertical takeoff and landing (eVTOL) company Joby Aviation has taken another step on its path to start a commercial air taxi service by 2025. The company said Tuesday that it’s begun final assembly on its “company-conforming” eVTOL, which is essentially a prototype that’s a couple steps away from the final version.
Joby expects to begin flight testing for the aircraft in the first half of this year.”