Google’s $1.3B Defense Tech Spin-Off: Is “Don’t Be Evil” Dead?

by Anika Shah - Technology
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Google’s Aalyria: From AI Ethics Concerns to a $1.3 Billion Defense Unicorn

Google’s journey with defense contracts has been marked by internal debate and public scrutiny. Initially adopting “don’t be evil” as a guiding principle, the company faced backlash in 2018 when it pursued Project Maven, an initiative to apply artificial intelligence to military purposes. While Google ultimately withdrew from Project Maven following employee protests and adopted “Ethical AI Principles,” it has continued to develop technologies with clear defense applications.

Aalyria: A New Venture in Secure Communications

In 2023, the Office of Naval Research and Naval Research Laboratory awarded Aalyria, a Google spinoff, a $7 million contract to develop advanced communication capabilities for the Navy. Aalyria’s core technology, Tightbeam, utilizes lasers instead of traditional radio spectrum to establish ultra-fast, hyper-secure, over-the-horizon connectivity. This technology is designed to be highly resistant to disruption and can establish connections between moving objects in seconds.

Tightbeam addresses the challenges of modern electronic warfare, potentially enabling secure communication between satellites and fighter jets, controlling drones, and guiding missiles. The technology’s low probability of intercept profile enhances security.

From Spinoff to Unicorn Status

Google spun off Aalyria as an independent business in 2022, retaining a minority stake. In early 2024, Aalyria secured $100 million in new funding from investors including Battery Ventures, J2 Ventures, and DYNE Maritime, achieving a valuation of $1.3 billion and earning “unicorn” status.

CEO Chris Taylor explained that the funding will be used to address a significant backlog of orders and accelerate product development. Aalyria is similarly developing Spacetime, software designed to orchestrate and manage diverse communication networks – including ground stations, aircraft, satellites, and ships – by allocating spectrum and routing traffic for seamless interoperability. Spacetime has already secured contracts with Leidos and the Pentagon’s Defense Innovation Unit.

Beyond Defense: Commercial Applications

While Aalyria’s initial focus is on defense applications, the technology has broader commercial potential. Spacetime, in particular, could facilitate communication between networks that were not originally designed to interact, opening up opportunities in various industries. Aalyria’s potential for growth extends beyond the defense sector, positioning it as a player in both the space and telecommunications industries.

Project Maven and Google’s Evolving Relationship with the Military

The development of Aalyria and its success represent a shift in Google’s approach to defense contracts. Project Maven, launched in April 2017, aimed to accelerate the adoption of machine learning and data integration for military intelligence. The initiative, initially focused on computer vision for processing images and videos, operated under the National Geospatial-Intelligence Agency (NGA). Google’s initial involvement in Project Maven sparked internal protests, leading to the company’s decision not to renew the contract and establish ethical AI principles. However, Google has continued to pursue other defense-related projects, demonstrating a willingness to collaborate with the military while navigating ethical considerations.

The Pentagon credits Project Maven with providing targeting support for U.S. Operations as of 2024.

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