Defense.gov,Office of Strategic Capital Announces Release of Fiscal Year 2025 Investment Strategy


Office of Strategic Capital Announces Release of Fiscal Year 2025 Investment Strategy

January 3, 2025

The Office of Strategic Capital (OSC) within the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) today announced the release of its Fiscal Year (FY) 2025 Investment Strategy.

The FY25 Investment Strategy outlines the OSC’s planned investments for the upcoming fiscal year, which focus on supporting the Department of Defense’s (DoD) modernization priorities and accelerating the development and adoption of critical technologies.

“The OSC’s investment strategy is a critical tool for enabling the DoD to maintain its technological edge and respond to emerging threats,” said Dr. Heidi Shyu, Under Secretary of Defense for Research and Engineering. “This year’s strategy targets investments in key areas that will strengthen our military capabilities and ensure our technological superiority.”

The FY25 Investment Strategy is aligned with the DoD’s Science and Technology (S&T) Strategy and the National Defense Strategy (NDS). It prioritizes investments in the following areas:

  • Artificial Intelligence/Machine Learning (AI/ML): Developing and deploying AI/ML capabilities to enhance decision-making, improve situational awareness, and automate tasks.
  • Autonomy and Robotics: Advancing autonomous systems and robotics to increase mission efficiency, reduce risk to warfighters, and enhance collaboration between humans and machines.
  • Cybersecurity: Strengthening cybersecurity posture to protect critical infrastructure, deter cyberattacks, and maintain information dominance.
  • Directed Energy: Developing and fielding directed energy weapons to provide new capabilities for defeating threats at various ranges.
  • Hypersonics: Advancing hypersonic technologies to enable rapid, long-range strikes and improve defense systems against hypersonic threats.
  • Microelectronics: Investing in microelectronics research and production to ensure access to advanced semiconductors and integrated circuits for critical defense systems.
  • Quantum Information Science (QIS): Advancing quantum computing, communication, and sensing technologies to create new capabilities and address complex defense challenges.
  • Space Superiority: Developing innovative space technologies to enhance situational awareness, protect satellite communications, and deter threats in the space domain.

The OSC will implement the Investment Strategy through a combination of direct investments, partnerships with industry and academia, and support for defense-related startups.

“We are actively seeking collaboration with innovative companies, research institutions, and startups that can bring cutting-edge technologies to the DoD,” said Dr. Peter Highnam, Director of the OSC. “Our goal is to foster a robust ecosystem that drives innovation and empowers the warfighter.”

The OSC’s FY25 Investment Strategy is a key component of the DoD’s efforts to maintain its technological superiority and address future threats. It represents a roadmap for investments in critical technologies that will shape the future of national defense.

About the Office of Strategic Capital

The Office of Strategic Capital (OSC) within the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) is responsible for investing in advanced technologies and capabilities to support the Department of Defense’s (DoD) modernization priorities. The OSC focuses on investments in emerging technologies, such as artificial intelligence, autonomy, cybersecurity, directed energy, and hypersonics, that have the potential to transform military operations and provide the U.S. with a decisive advantage on the battlefield.


Office of Strategic Capital Announces Release of Fiscal Year 2025 Investment Strategy

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