This Week in Dual-Use by Sam Burrell

Feb. 4, 2026 - Major developments in dual-use and defence tech.

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SpaceX acquires xAI

SpaceX’s acquisition of xAI at a $1.25tn valuation ties its capital-disciplined launch and satellite business to the cash-hungry race for frontier AI. While framed as a space-based data-centre collaboration, the deal effectively channels SpaceX revenues to fund xAI’s competition with OpenAI and others, diluting SpaceX’s focus and undermining the case for it becoming the world’s most valuable company.

UK gives military more power to shoot down drones

The UK’s move to expand military authority against drones underscores the rapid growth of counter-UAS (C-UAS) as a critical defence market. Protecting airports, bases and infrastructure will require layered, overlapping defences where proven, affordable technologies—many validated in Ukraine—outperform bespoke solutions, raising questions about how governments define and pursue sovereignty as the market matures.

Quantum computing for missile defence

A partnership between D-Wave, Anduril and Davidson Technologies suggests quantum computing may reach practical defence applications sooner than expected. By focusing on quantum-classical hybrid systems for current missile defence planning, the effort signals near-term deployment potential and echoes the defence-led origins of Silicon Valley, hinting that military needs may once again accelerate breakthrough technologies.

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Samuel Burrell is a Partner at Expeditions, investing in the future of security in Europe.

His weekly newsletter covers developments in dual-use and defence technologies, picking out the changes in the sector, giving them context and analysis.