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AR15.COM
7/16/2026 8:44:17 AM EDT
With munitions stockpiles dropping, why would said suppliers not be expected to reap in profits....is all the cash going to the AI frenzy..?
7/16/2026 9:35:04 AM EDT
[#1]
Originally Posted By bondservant2:
With munitions stockpiles dropping, why would said suppliers not be expected to reap in profits....is all the cash going to the AI frenzy..?
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Money is moving into big defense because there will be revenue seen in the replacement of expended munitions and destroyed hardware, but revenue/profit from the production of existing munitions is relatively small for big defense companies.  

As an example, the APKWS (laser guided rocket) costs around $20k each.  
They can produce on the order of 10-20k per year.  20k rockets at $20k each is.... $400million per year.

The .gov spent $9billion in just 5 years on the CCA (collaborative combat aircraft) development program alone.  That's $2billion per year on a single program.  

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