The U.S. Department of Defense (DOD) is an enormous organization, employing millions of service members and hundreds of thousands of civilians. With the largest military budget globally, it manages an immense array of equipment and resources that can hardly be summarized in a single paragraph.
Coordinating these vast operations is a significant challenge. DOD operators from various agencies must devise plans, allocate resources, and adhere to budgets while addressing potential crises—be it a natural disaster or a foreign adversary.
Enter Defcon AI, a Virginia-based startup that has secured $44 million in a seed funding round led by Bessemer Venture Partners, with additional participation from Fifth Growth Fund and Red Cell Partners. Founded two years ago, Defcon AI aims to tackle these complex logistical challenges.
A prime example is the Air Mobility Command within the U.S. Air Force. When planning airlifts, operators must factor in numerous variables: available aircraft, crew requirements, rest facilities, refueling locations, airfields, and cargo handling. According to Defcon AI co-founder and retired U.S. Air Force General Paul Selva, the company has created software that enables operators to set parameters upfront and then run the system to generate the optimal airlift plan, including cost estimates, resource needs, and schedules.
Strategic planning in this context is already difficult, but during emergencies, operators often lack even a full day to make critical resource allocations. This is where Defcon AI excels.
Selva brings invaluable experience to the table, having previously commanded the Air Mobility Command and the U.S. Transportation Command, which oversees global transportation missions involving ships, trucks, and trains. Before his retirement in 2019, Selva was nominated by President Barack Obama as vice chairman of the Joint Chiefs of Staff.
In 2022, Selva co-founded Defcon AI alongside Yisroel Brumer and Grant Verstandig, both founding partners of Red Cell Partners, where Verstandig also serves as CEO. Red Cell operates with a unique approach, investing internally while also fostering the growth of startups like Defcon by assisting with board development, legal matters, HR, and finance.
Defcon’s inception was inspired by the mission need articulated by Air Mobility Command—a gap that industry had not addressed. The founders believed that the logistical challenges were mathematically and technologically solvable, provided they approached the problem differently.
Brumer and Verstandig bring their own impressive backgrounds to Defcon. Brumer previously served at the Pentagon as acting director of the Office of the Secretary of Defense for Cost Assessment and Program Evaluation, overseeing the DOD's budget process. Verstandig has a track record of building businesses, including Rally Health and the defense startup Epirus.
Brumer notes that Defcon AI is tackling an issue of "maximal complexity." The startup's advanced system employs various algorithms, including machine learning and mathematical optimization, to simulate scenarios and derive the best logistical outcomes. Initially relying on reinforcement learning algorithms that do not require extensive data, Defcon LSI is now increasingly integrating DOD-supplied data into its software. Operators can also instruct the system to simulate adversarial disruptions and optimize for various objectives, such as cost efficiency versus speed.
To date, Defcon AI has secured about $15 million in government contracts and has delivered a production version of its software for an actual operation with the Air Mobility Command, just two years after its founding. The company is currently in the process of certifying its software to work with classified information, which will allow for broader data integration and applications within the DOD. It aims to expand its planning and simulation capabilities to include not just air logistics but also trucks, trains, and ships.
Defcon AI is not looking to slow down; the company foresees numerous opportunities within the DOD to enhance operational efficiency. Brumer highlighted the strong demand signals from the private sector for similar solutions. By closely collaborating with end users, Defcon AI aims to refine its product offerings and gain a competitive edge in high-stakes situations.
“Operational planners need to assess risk for their commanders,” said Selva. “They tend to be the most skeptical audience for decision support tools, so partnering with them ensures better outcomes.”
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