The Pentagon has distributed a major drone contract among nine startups, including Eric Schmidt's Perennial, with the requirement that all components be sourced from outside China.
The US Department of Defense is splitting orders for 60,000 drones across nine competing startups as part of a push to reduce reliance on Chinese-manufactured components. The competition comes after the Pentagon expressed frustration last month with most drone startups' inability to meet China-free sourcing requirements.
Perennial, founded by former Google CEO Eric Schmidt, is among the selected companies competing for the contract. The move reflects broader US national security concerns around supply chain vulnerabilities and the military's dependence on foreign semiconductors and parts.
The contract represents a significant opportunity for domestic drone manufacturers and marks an effort to build a domestic industrial base. By distributing orders across multiple startups rather than selecting a single winner, the Pentagon aims to foster competition and ensure supply diversity.
This competition-based approach allows the DoD to evaluate multiple platforms and technologies while supporting the growth of homegrown drone manufacturers capable of meeting stringent security and sourcing standards.
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