US Navy outlines five technology priorities for investors
The US Department of the Navy has released an updated list of technology priorities designed to give companies and investors a clearer view of demand over the coming years. The list, jointly issued by the office of Chief Technology Officer Justin Fanelli and the Portfolio Acquisition Executive for Mission Systems, identifies five broad areas rather than specific funded programmes.
Fanelli said the Navy spends in the “$150 billion range” annually, while stressing that this represents total Navy purchasing rather than direct equity investment. Most spending continues through traditional procurement channels, but the organisation is seeking more co-investment with private capital and a clearer path for commercially developed technology.
Five areas of technology demand
Applied AI heads the priority list. This includes machine learning and agentic software for converting raw data into decisions, including sensor fusion, targeting support, autonomous behaviour and software-based cyber operations.
Quantum information science is focused on applications such as navigation, secure communications and cryptography, rather than simply owning quantum hardware. Advanced networking is intended to support secure data movement across degraded or intermittent connections, including shipboard and coalition environments.
The remaining categories are electromagnetic spectrum operations and digital engineering and interoperability. Spectrum technologies are expected to sense and manage contested conditions dynamically. The interoperability work covers open APIs, model-based systems engineering and zero-trust architecture intended to reduce the need for custom integrations between Navy systems.
Commercial suppliers and procurement realities
Fanelli said the Navy now mostly purchases from Series D through Series F companies, rather than filling the seed-to-Series-B gap itself through early research funding. In this model, commercial investors are expected to help companies mature products before the Navy becomes a customer. The priorities document is intended to make that investment decision less opaque.
He cited several commercial technology purchases. A $562 million contract was awarded for the MQ-25 Stingray autonomous refuelling drone. The Navy has purchased edge computing hardware from Armada, used Gecko Robotics for inspections, and put Domino Data Lab in charge of its machine learning pipeline.
Fanelli also described replacing a delayed contractor-led shipboard camera system with commercial cameras and software from Applied Intuition. He said that change removed roughly four years from the timeline and expanded deployment to more ships than expected.
A signal, not a guarantee
The memo explicitly says that the categories are neither funding commitments nor rankings of individual programmes, and that priorities may change with emerging needs. Fanelli described the list as a roadmap, giving companies and investors a clearer basis for decisions made now that may lead to Navy adoption in several years.
For businesses pursuing this market, a technical match alone is not enough. Fanelli has said that a new tool must ultimately replace or turn off an existing funded capability to survive Navy budget cycles, making a credible transition and replacement plan a practical requirement alongside product performance.