Rear Admiral Wettlaufer on Creating a Culture of Excellence

Spencer Rascoff

Spencer Rascoff serves as executive chairman of dot.LA. He is an entrepreneur and company leader who co-founded Zillow, Hotwire, dot.LA, Pacaso and Supernova, and who served as Zillow's CEO for a decade. During Spencer's time as CEO, Zillow won dozens of "best places to work" awards as it grew to over 4,500 employees, $3 billion in revenue, and $10 billion in market capitalization. Prior to Zillow, Spencer co-founded and was VP Corporate Development of Hotwire, which was sold to Expedia for $685 million in 2003. Through his startup studio and venture capital firm, 75 & Sunny, Spencer is an active angel investor in over 100 companies and is incubating several more.

Rear Admiral Wettlaufer on Creating a Culture of Excellence

Earlier this year, Spencer had an opportunity through the Navy's Distinguished Visitors Program to visit the USS John C. Stennis, an aircraft carrier. During his time aboard the ship, Spencer met Rear Admiral Michael Wettlaufer, who's spent 32 years serving in the Navy. Throughout his career, Admiral Wettlaufer has received multiple medals for his service, logged 3,500 flying hours, flown 49 different aircraft types and made over 800 arrested landings. To say he's a brave and accomplished leader is an understatement. In this episode, Spencer returns to the USS Stennis for a conversation with Admiral Wettlaufer about leadership. The two cover a lot of ground, including the Admiral's impressive career in the Navy, the importance of teamwork and how to build a culture that's committed to excellence.


Press Play to hear the full conversation or check out the transcript below. You can also subscribe to Office Hours on Apple Podcasts.

Rear Admiral Michael Wettlaufer: So the opinions that I may give are my own and not those of the United States government, the United States Navy or the Department of Defense. How about that.

Spencer Rascoff: All right. The lawyers are satisfied. Admiral, it's amazing to be back here. I was here for, I guess, two nights a couple months ago, somewhere in the Pacific at an undisclosed location. You never did tell me where we were exactly, but we were at sea, and I had an extraordinary time getting to know you a little bit, getting to know your staff, and speaking with so many sailors. I felt like I learned more about leadership and management in those two days at sea than anyone could learn sometimes in a career. I'm grateful that you let me come back here and get some of these learnings on tape, so thank you.

Admiral Wettlaufer: Well, I'm happy to have you back, and it's great that you had some time between then and now as well so you can think about maybe what you saw and the fact that as you came out, and I described earlier to some of the folks in the room, as you come out and you go to the aircraft carrier you think, “I'm gonna see the coolest, this cool giant machinery," right?

But in the end, none of the machinery works without all those young leaders who are at various stages of learning to lead, which part of that is learning how to follow, right? It's an amazing experience, and I am honored every single day just to be involved with those people.

Spencer: So let's start with your career and sort of take a step back. You've had a 33-year, 32-year career in the Navy. Just walk us through, even at the very beginning, why did you join the Navy? Then give us some career highlights to bring us to the present.

Admiral Wettlaufer: It's a great question 'cause it's one I ask myself. You look back after this amount of time. I was a microbiology major in college, and I did not wanna be in a laboratory ever again after I finished my degree. I was thinking about that, what do I do that's gonna be exciting?

Spencer: At traditional college or at Navy?

Admiral Wettlaufer: No, university, Colorado State.

Spencer: OK.

Admiral Wettlaufer: So when I finished school and had a great time learning, loved to learn, but I wanted to change what I was doing, and I have a lot of family members, my dad's family and my mom's family, who were in the military. A doc that my dad worked with asked me the question about a year prior, said, “What are you really gonna do?"

So end of school, graduate, and I went to the recruiting office in downtown Denver, parked in the back, walked in the side door. The first office I came to was Navy officer programs, and I went in and said, “I have this microbiology degree; I don't wanna use it. What do you have?" So two weeks later I take an aptitude exam. A week later, 'cause this was prior to computer-based testing, a week later they call back and say, “Hey, you did well on that test. Do you wanna be a pilot?" I said, “How much does it pay?"

So that's 32 years ago, 32-and-a-half years ago, and I have been challenged and intrigued, curious and rewarded, with great opportunity ever since.

So I started off, went to flight school in Pensacola, Florida. I came out of there flying off the USS America, A-6 Intruders. We were based on the East Coast. Three deployments, two sets of workups, Desert Storm kind of in the middle there, and then I went to the test world, and I had the opportunity to become a U.S. Navy test pilot, so I went to school again. Got to use all the physics and calculus that I had previously, and so I went to test pilot school. Again, great challenges.

Totally different than what I was doing prior to that; not totally, but different in the way you approached it. Got to spend a lot of time operating off ships as well. So a year of school, two years of doing test work, and then I transitioned to the F-18 at that point, and I flew F-18 Charlies operationally. At test pilot school and during the test business I flew 22 to 25 different airplanes, which wasn't unusual at the time.

So I went to Japan and I operated off the USS Independence and the Kitty Hawk flying F-18s, and then I went to the UK and I got an opportunity to fly with the British at their test pilot school as an instructor or tutor, as they say, and did some test work for her majesty on exchange from the United States Navy. And then I went to the Naval War College after that, and so I went and got a master's degree in national security and strategic studies. While I was a test pilot I was fortunate enough to go to the University of Tennessee as an away student and had a master's of science in aviation systems.

So a lot of school along the way, a lot of interesting and diverse experiences, and then I worked in a think tank for the CNO, the Chief of Naval Operations, called the Strategic Studies Group at the time. So our job was to look out in the future and see what future stuff was there and how do we pull it in closer, how do we get there faster. So for CNO Clark, Adm. Clark at the time, that was his focus for us and a great opportunity to work with scientists, see behind some of the doors in our federally funded research and development institutions around the United States, as well as U.S. government labs.

And following that I was fortunate enough to get selected to command an F-18 squadron. Went back to Japan as the XO and then the commanding officer on a VFA-195, the Dambusters in Japan, and operated off the carrier for a few years there, underway a lot, and then was rewarded.

Spencer: Underway; you just used some terminology.

Admiral Wettlaufer: At sea. So underway at sea. If you see the Navy around the United States, we're probably not doing our primary mission. We play the away game, so we play the away game 24/7 so there's some aircraft carrier strike group ships out there, independent strike group.

Spencer: What is that sound that we're hearing?

Admiral Wettlaufer: It is 11:30, so we have to mark the time with the bells traditionally. If you were standing watch and back in the day the tradition is you didn't have a watch.

So the ship lets you know what time it is, and if you're on a four-hour watch you wanna hear those bells get to higher numbers of bells as the time goes on 'cause that marks your watch. So there's 30 more minutes in somebody else's watch.

Spencer: Punctuality. Just one of the many reasons I love the Navy. So here we are, we're sitting on the USS Stennis, an aircraft carrier. You command Carrier Strike Group 3.

Admiral Wettlaufer: That's correct.

Spencer: Approximately 7,500 people?

Admiral Wettlaufer: Right.

Spencer: The Stennis is obviously the largest ship in the strike group, and then how many other ships are attached to the Stennis?

Admiral Wettlaufer: So attached to the strike group I've got five destroyers and the cruiser Mobile Bay, USS Mobile Bay, which, by the way I, deployed with Mobile Bay back in the late '80s and early '90s on the East Coast. You see ships around for quite a number of years, and aircraft carriers are typically around for about 50 years, but that's a little beside the point. The ships that will deploy with us, we won't deploy with all of those destroyers.

One of them is already deployed now by itself, independently deploying forward, doing a number of missions in the Pacific and farther to the west. So we're gonna deploy with some number of those ships. In the past year or so we've been training for that process.

Spencer: By the way, one of the really interesting themes of your career is something that I heard when I spoke with other officers when I was on the ship, which is continuous education. It seems like the career of a naval officer involves a lot of returning to school and then returning back into the force and sort of transitioning between academic and practical.

Admiral Wettlaufer: Absolutely, and not all of it — there's a lot of formal education from flight school or a junior sailor going to learn the first part of his trade, whether he or she is working as a mechanic or electrician or maybe working on computer systems, right? They're gonna get some training initially and then we do a lot of on-the-job training.

So a naval aviator or a junior sailor coming to the ship or coming to a squadron is gonna be in a continuous training process. A lot of that is formal. It's formalized in books or via computer system, or it's formalized by the fact that I've got to sit down with somebody else who knows the subject, and I've got to do a give-and-take education process, on-the-job training. If you're training me on something, you've got to be satisfied that I understand it before you sign me off.

Spencer: There are many misconceptions that civilians like I had or have about the military, one of which is that the career path is a straight up-and-down ladder. You do a certain number of years in a position, you get promoted to the next position, next rank, etc. The naval career feels a lot more like the corporate world, especially in technology. We use this metaphor that your career is like a jungle gym, not like a ladder.

You go up a little bit, to the side, down, over, up some more. Would you agree with that description?

Admiral Wettlaufer: A jungle gym; I would certainly say there's a career path. Don't get it wrong. We have a designed career path, a very typical career path, whether you're a Surface Warfare Officer or Submarine Officer, Aviator, Supply Officer, there's gonna be some typical jobs you have to get, but they're not all in the same place. So similar in the corporate world to your IT analysis or comparison is that you're gonna move laterally, out of one organization, over to another.

You're still in the Navy, but you may work with another Navy or you're gonna move from a seagoing billet to learn maybe more about how the shore side works. It also gives you a break from being in the deployed status to being not so much of a deployed status. So there's some stability aspects of the career that go with that, but there isn't stability in — it's very unusual for somebody to be in one place for a long period of time. So you're gonna move laterally up and down just like you described in the jungle gym.

Spencer: So I wanna talk about teamwork for a moment and how this whole organism fits together. You said something fascinating to me when I was here a couple months ago. I expressed surprise at frankly how much transparency there was about the operations of the ship, and I said, “Don't foreign governments, don't the Chinese or the Russians or whomever, aren't they trying to copy this aircraft carrier?"

And you said, “Firstly, we have a lot of technologies that you're not seeing on this tour, but more importantly it's not about the technology that creates this aircraft carrier. It's about the teamwork that the way this strike group works together and the way the entire Navy works together, and it will take generations for other navies, other countries' navies, to recreate that.

Admiral Wettlaufer: Well, it's a culture, right? Every organization has a different culture.

This organization, particularly the culture around excellence. We can't operate forward in a dangerous environment. You saw on the flight deck one of many dangerous environments we work in, but it's perhaps the most dangerous environment in the world when you're operating the flight deck and we're not getting shot at necessarily up there on the flight deck. It's people, metal, it's machinery, it's a dynamic environment. It's high paced and there's not much room for error because a single error can have catastrophic effects.

So it's that culture that you have to build and maintain, and we've been doing this for a number of years, at least as you looked at the aircraft carrier. We've been fortunate enough to operate and learn over time. None of it's static. We're continuously learning and we're bringing people into that culture a few at a time. It's not like we don't – we don't start from Jan. 1 and we're gonna bring in a whole bunch of new people, we're gonna bring in 5,000 new people to be on the aircraft carrier with the air wing, or 7,500 people start over in the strike group.

It's this continuous process of maintaining that culture and training people into it, acculturating them, and then standards. So the standards have to be owned, learned and owned at the lowest possible level, and you want to have decisions made at the lowest possible level of execution, level of responsibility that you can so that you can have those decisions made rapidly. You saw the flight deck, right? Perhaps one of the most interesting ballets without ballet shoes on.

Spencer: This is fighter jets landing and taking off on an aircraft carrier.

Admiral Wettlaufer: Right. Fighter jets, helicopters; the synchrony of that, the maintenance that goes on, the cyclic nature of that business. And you saw as you described it the team of teams that could potentially be separated and maybe are in the building-up phase as we get ready to start to get underway from maintenance to operations, and you start training in smaller groups or single-ship units, single squadrons.

As you bring that together, the key is that synchrony that occurs when you bring these separate teams together, and the culture has got to be there to allow that to happen. Otherwise, you have stovepipes of excellence and they don't cross.

Spencer: You handed me a little index card here with a quote, which you sometimes do, handing leadership and other quotes out to people here on the ship. It's an Aristotle quote. It says, “We are what we repeatedly do. Excellence then is not an act but a habit." So what does that mean to you? What does a culture of excellence mean? How do you achieve it?

Admiral Wettlaufer: So it's got to start with knowing what the goals are, and you have to translate that. You have to communicate. Communication, I believe, is the hardest thing we do. It's absolutely very, very difficult. It takes continuous attention, and you have to use every medium that you possibly have to communicate: verbally, face-to-face verbally, on a loudspeaker, clock.

The chiming of the clock, right? And so if we don't communicate the mission, the short-term, medium-term and long-term goals in a continuous way, people stop paying attention, right? What do you wanna have? Buy-in. How do you get excellence? Well, you gotta communicate. Gotta know what I'm supposed to be doing. Then you gotta get buy-in. You gotta get past that 51 percent momentum hump if you will, right? You've got to have a self-sustaining momentum, and it's gotta overcome the momentum of sameness.

So the momentum of sameness is we're gonna just sit here and do nothing 'cause I'm perfectly happy in where we are and what we're doing. That's not me. I'm not perfectly happy, right? So you have to have communication to talk about the goals, and you have to have goals, right? You have to have achievable things along the way, and you have to translate those things into action.

So culture of excellence self-assesses. To achieve excellence I wanna shoot really at perfection because if you shoot at perfection you're gonna achieve excellence, right?

It's very hard to be perfect. And you've got to assess, where am I all the time on every single line of effort, and how do you communicate those lines of effort to the newest person in the organization as well as the most senior people in the organization and outside of the organization, 'cause we need support from outside as well.

So that culture of excellence can be self-sustaining if it's self-working. It can't sustain itself without a ton of effort at every single level. So the most junior leader to the most senior leader has to be fully engaged in achieving that mission, whatever it happens to be.

Spencer: I mean so many similarities here to business. The best businesses I think are mission-oriented. Their leadership team constantly communicates to employees why their work is important, how it relates to the broader mission. You have a culture of excellence and standards. In tech we call them OKRs, objectives and key results to try to hold people accountable.

You have some sort of relative advantages and relative disadvantages as compared with companies, I'd say from my point of view. One of the relative advantages is that when you're underway, your employees, if you will, have no access to social media, no access to distractions. They're sort of all yours, if you will, 24/7 to mold them and to lead them.

Corporations don't have that advantage. A disadvantage is that your employees are quite young, I mean 17, 18, 19. I don't know what your median age is on a ship, but it's probably in the early 20s, I would guess.

Admiral Wettlaufer: Right. Most people arrive at the age of 18 to 22 is where that arrival time is, depending on their seniority and what job they're doing, but I see exactly what you're saying and what that view is. Those young people, though, provide the energy and also a challenge. The challenge is to make sure they're engaged in the right direction and make sure there are opportunities, or they came for opportunity. Make sure we're helping them achieve those, reach those goals that we help them set.

So there's a human-to-human contact that we have, as you rightly point out, longer than the eight-hour day, a typical day you may get for a worker in the tech business or a corporation someplace. But that is a great gift because we can communicate whenever we want, we think anyway. But then the challenge is to make sure that they're listening. One of the key challenges is that, as you know, what I say is not what you heard. That's a key challenge. So how do I make sure —

Spencer: What I say is not what you heard. What do you mean by that?

Admiral Wettlaufer: Everybody translates differently, and when are they paying attention or what's the state of their mind as they're paying attention? So what I say is not, or what I wrote is not, what you read necessarily. So how do I find out what I said is what you know?

Spencer: You ask people to play it back to you?

Admiral Wettlaufer: You have to play back, right? So not only can you — you have to push communication. There has to be a return process.

Spencer: And so correct me if I'm mistaken, but you allot a not insignificant portion of your day to management by walking around, talking to sailors, discussing with them what's on their mind, what they're working on. Why is that so valuable?

Admiral Wettlaufer: Because you can skip levels, right? I'm not sure what you might call it in the —

Spencer: We call them skip levels.

Admiral Wettlaufer: So you can skip levels, and to skip a level then you don't have to wait for the filter to give you the information that the filter wants to give you. So one of the big challenges that we had is we are preparing our war fighting skills, our deployment kind of skills; over the past year is understanding where the entire team sees themselves. So I can say something, and if I don't ever go look outside the room, if I don't ever go ask, then I'm gonna get a bunch of smiling faces that said, “Oh yeah, we heard that."

But I haven't checked whether or not that translation what they have heard beneath that level is what I have said, or what I mean — even more importantly, what I mean. So if I don't go out, and any of us, leaders at any level, if we don't go out and engage, then we really don't know what's on the minds and what the state of mind is of the people that we expect to execute, and I think that's important to get past roadblocks in achieving goals. Because if they don't have the same or similar goals in mind, then we're never gonna get there. We won't get to excellence.

Spencer: One of the other disadvantages you have is there's a lot of turnover, sort of by design. In the Navy people start and then they're on a particular shift for, I don't know —

Admiral Wettlaufer: Four, six years, something like that.

Spencer: And actually even certain elements are detached from this ship, right?

Admiral Wettlaufer: That's correct. Yes.

Spencer: So the air wing, which is 1,000-plus people, 2,000 people that fly the planes, it's like you're putting pieces of a puzzle together. They join the ship for some finite period of time, and now these teams of teams are working together, and then the air wing leaves.

Admiral Wettlaufer: Disembarks. Yep.

Spencer: So how do you — with turnover, with these sort of teams coming and going, how do you try to gel the whole organization together?

Admiral Wettlaufer: So that's where you've got to have, well at least in my case, I've got six direct reports. The captain of the aircraft carrier has 20 or 19 direct reports.

Spencer: So because you oversee the strike group you have six ships.

Admiral Wettlaufer: The air wing commander; the destroyer squadron commander, who is responsible for the destroyers; the cruiser commanding officer at USS Mobile Bay; the aircraft carrier commanding officer; the air wing commander; and my information warfare commander. So those are my direct reports.

Spencer: And so the captain of the USS Stennis, this aircraft carrier, has 20 direct reports.

Now you used to have that position, if I'm not mistaken, so that's another challenge of management, is one, you get promoted to the next role and someone else takes your prior role. How do you —

Admiral Wettlaufer: Don't do the other guy's job.

Spencer: How do you let go?

Admiral Wettlaufer: You better let go because he was selected to do that job for a reason. It's the same as skipping levels to figure out what's happening. By the nature of my experience, my experience is similar to his job right now, so I can ask some questions and walk around essentially and get a good idea about what's going on there.

My challenge, as you mentioned with the air wing, is translating, making sure the air wing commander and his commanding officers have heard what I said and I've translated my vision properly so they can execute it. But it's a shared vision, so here's the other advantage is that, that part of the organization, that division, if you will, of an organization has similar goals.

They just have a different way to get there. So we share the end goal. I've just got to make sure I've translated the goals to the air wing commander so he can do it to his squadrons so that when they arrive we are ready to start that synchronization process. We don't have to do stutter steps to break down silos. And it's not just the air wing commander coming on board, it's the air wing commander coming on board with those squadrons that have to leverage the supply system on the aircraft carrier.

They've got to be able to fully integrate with the support mechanisms from laundry to food service to berthing and cleaning to the flight deck operations. So these organizations have to be able to very neatly — this goes back to culture — very neatly interlock without having the stutter steps. If you have the stutter steps, it delays excellence. It could create some challenges in safety and operations that we just don't wanna have.

Spencer: When people enter the Navy typically today, or when I asked sailors, “Why did you join?" their most common answer was, “For a better life." Some version of, “I wanted to better myself because I was kind of stuck. I was in a rut in my life" essentially. Once they're here and then they're part of this organization for three, four, five years, the people that seem to stay for a career, another motivation clicks in. Maybe it's duty, maybe it's personal fulfillment. Walk us through that motivation.

Admiral Wettlaufer: That's a great question. It's probably the success along the way, right? Everybody comes for a different set of reasons and they find things along the way, and that's what we want them to do. We want them to come and contribute to the team and be successful on the way, to take what they didn't have and they wanted and go find it here. That's opportunity.

People wouldn't come if they weren't looking for opportunity, right? So how do we help them get along that path? For some there is an “I'd like to go to higher education and I didn't have the opportunity to do this." A young lady about four weeks ago, five weeks ago, actually it was the 17th. I remember it was the 17th of August. She was leaving the ship. I knew her when she was just arrived here, and she wasn't the youngest person to join the Navy. So she arrived here with three years of college completed, and she came here to get an opportunity to complete.

So she finished her fourth year of college while in the Navy over the four years, and she was leaving here to go on to law school to take advantage of the GI Bill. So there's one motivation, right? But she also had family. She had a child she wanted to take care of, etc. But there are many others. Petty Officer Bloomer, who works in the air department, I've known her since I think when I was XO, when she was first on the ship, so 2011 maybe.

Her motivation is helping out other sailors. So she wants to be a career counselor, and she counsels other junior sailors on how to achieve their goals. And then you've got people that are exceptional, technically exceptional in their particular job, or they enjoy the challenge and the lifestyle of being at sea and doing the nation's business. All those people are patriots. Every single one of them arrived here, they raised their right hand and they said, “I wanna be part of the 1 percent."

They didn't know it necessarily at the time, but they're part of the 1 percent that the 99 percent expects to protect them without question. So that 1 percent; I am honored to work with the 1 percent of America that wants to defend America. So in all of those things that people want, I think what they get out of this, no matter how long they stay, is that they were part of the folks that stepped up and said, “I'm gonna defend the United States of America and what we believe in."

It's a fascinating merging of all kinds of people from all walks of life in the United States, and I'm just honored to have the opportunity to be part of that process, particularly right now.

Spencer: And we're grateful to you and to them. When people leave the military and look for their next career they are — companies like ours work very hard to recruit them.

Veterans face a lot of challenges re: orienting themselves to the private sector and just the world after the military. What would you want companies like ours and other executives listening to this to know about veterans so that we can be better at bringing them back?

Admiral Wettlaufer: Sure. We may have discussed this when you were on the ship previously. I think one of the major things that we deliver from a human being perspective is that people see their own success. OK, this is what I came to do and my team did this and I've succeeded here. And along the way we do what corporate America doesn't necessarily do — and certainly at the entry level in corporate America — is that we train them to lead, right? We train people to step up and take charge.

We have all kinds of training along the way, from just learning how to fight a fire on the ship to make sure that you can save your ship and save your shipmate; and damage-control kinds of things to operating up on the flight deck to managing somebody else's personnel files. These are all key aspects of what we do and what they see. What you see on the outside is somebody who not just knows how to go to work on time; a responsible taxpaying citizen.

They certainly came in and become that, or they were that beforehand, is that somebody who knows how to lead, step into a breach and pick up something that got dropped. So I promise you will hire somebody who can lead when given the opportunity, and they will deliver success in organizations at an earlier age, an earlier time in their career than somebody that doesn't have that military experience necessarily.

Spencer: That has been my experience in my interaction with our veterans. I mean they're extraordinary and I hope we can hire a lot more of them. Thank you for your service, Admiral. Thank you for your time. Thank you for sharing some wisdom. I greatly appreciate it.

Admiral Wettlaufer: Thanks very much for coming out and seeing me again, and I look forward to opportunities to engage with a lot of folks in the world, the corporate world, if given the opportunity.

Spencer: Thank you.

The post Rear Admiral Wettlaufer on Creating a Culture of Excellence appeared first on Office Hours.

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Anduril Built Fighter Jets. Now It’s Making a Laptop.
Anduril

🔦 Spotlight

Happy Friday, Los Angeles.

Anduril has built autonomous drones, underwater vehicles and fighter aircraft. Its newest product is considerably more familiar.

A laptop.

The Costa Mesa-based defense technology company announced this week that it is partnering with San Diego-based Qualcomm Technologies to launch BlueChip, a new line of computers designed in California and manufactured in the United States.

The first product will be a rugged laptop powered by Qualcomm’s Snapdragon X Series platform and built for customers in government, defense, public safety and other critical industries. Anduril has already produced working prototypes and plans to begin accepting orders in 2027.

At first glance, a laptop may seem like a modest addition to a company known for developing autonomous military systems. But BlueChip is less about entering the crowded consumer-electronics market and more about rebuilding the industrial foundation behind the machines Americans use every day.

The United States remains a leader in designing advanced technology, but much of the physical production required to turn those designs into finished computers has moved overseas. That includes not only semiconductor manufacturing, but also circuit boards, displays, batteries, enclosures and the network of specialized suppliers that connects them.

For most consumers, that dependency is largely invisible. For the government and military, it represents a potential vulnerability.

BlueChip is Anduril’s attempt to close that gap.

Components sourced from the United States and allied countries already account for more than 90% of the prototype laptop’s procurement cost. Circuit-board assembly is planned for Anduril’s Arsenal-1 facility in Ohio, while the company develops domestic production capabilities for enclosures, batteries and other hardware.

The goal is to gradually replace remaining foreign dependencies and create an end-to-end American computer supply chain that can support additional products beyond the first laptop.

That process requires more than moving an existing design into an American factory. Anduril is redesigning the computer around what domestic manufacturers can realistically produce at scale. The work includes selecting machinable American metals, adapting power systems to available battery technology and developing a bonding process for domestically made display glass.

In other words, Anduril is not simply assembling a laptop in America. It is working backward through the supply chain to make American assembly possible.

Qualcomm will supply the computing foundation. Its Snapdragon X platform will handle processing, graphics and on-device artificial intelligence, giving BlueChip users the ability to run certain AI models locally rather than sending sensitive information to the cloud.

That is particularly valuable for government and defense customers operating in secure environments, but it also reflects a broader shift in computing. As AI becomes embedded in everyday workflows, the location where information is processed may become nearly as important as the model doing the processing.

The partnership also reinforces Southern California’s growing role in the effort to rebuild American advanced manufacturing.

Anduril remains headquartered in Orange County, but its regional footprint is expanding. The company is investing $1B in a new campus spanning Long Beach and Lakewood that is expected to support approximately 5,500 jobs and include engineering, laboratory and prototype-manufacturing space.

Qualcomm, meanwhile, has spent decades building San Diego into a center for wireless technology and semiconductor design.

BlueChip brings those two Southern California strengths together: Anduril’s ability to move quickly from engineering concept to physical product and Qualcomm’s expertise in efficient, high-performance computing.

The first BlueChip laptop is not intended to compete for space in every backpack or coffee shop. Its early customers will likely be institutions that care deeply about security, reliability and control over their technology supply chains.

But the larger ambition reaches far beyond a single device.

If BlueChip succeeds, Anduril and Qualcomm will have created more than an American-made computer. They will have helped restore the suppliers, production knowledge and technical workforce required to build the next one.

For a company accustomed to tackling difficult national-security problems, the laptop may be one of Anduril’s most practical ideas yet.

Sometimes rebuilding an industry begins with reopening the machine.

More from this week’s LA startup and venture scene below.

🤝 Venture Deals

    LA Companies

    • StimCardio raised an oversubscribed $30M Series A led by Metis MedTech, with participation from Catalyst Health Ventures and other investors. The Los Angeles medical device company will use the funding to advance a pivotal study of Rhyvive, its investigational wrist-worn therapy designed to reduce recurring atrial fibrillation after catheter ablation, and prepare for an FDA submission. - learn more
    • Gardena-based Neuron Industries raised an oversubscribed $10M seed round co-led by FCVC and Obvious Ventures, with participation from Y Combinator, Thin Line Capital, Zee Prime Capital and Founder Factor. The company will use the funding to develop and launch its AI-powered industrial control platform, expand its product line and establish domestic production as it works to help engineers automate new factories and machinery more quickly. - learn more
    • Offe Market raised a $3M seed round led by Slauson & Co., bringing the off-price retail marketplace’s total funding to $4.3M. The company will use the capital to expand its commerce platform with AI-powered pricing and inventory tools, personalized recommendations and live shopping features designed to help brands sell excess merchandise without sacrificing control over presentation or pricing. - learn more
    • Loamy raised a $6M seed round led by Zeal Capital Partners, with participation from LA investors Slauson & Co., Supply Change Capital and Amplify.LA, bringing its total funding to $10M. The company will use the capital to expand its engineering and sales teams, advance its AI platform and enter additional food categories as it helps growers, packers and distributors reduce waste and prevent rejected shipments. - learn more

    LA Venture Funds
    • MaC Venture Capital co-led Rendezvous Robotics’ oversubscribed $20M seed round alongside Toyota Ventures, marking the space startup’s first priced financing. The company will use the funding to develop its next-generation modular spacecraft, expand its team and prepare for flight demonstrations of technology that allows spacecraft components to assemble and reconfigure autonomously in orbit. - learn more
    • BOLD Capital Partners participated in General Compute’s $100M Series A, which was co-led by Blackbird and Abstract. The company will use the funding to scale its AI inference cloud, which deploys specialized chips from companies including Cerebras, SambaNova and Positron AI to help customers run AI workloads faster without managing the underlying infrastructure. - learn more
    • Mantis Venture Capital participated in Vera Health’s $28.5M Series A, which was led by Threshold Ventures and brought the clinical AI company’s total funding to $32M. Vera will use the capital to strengthen its medical-evidence infrastructure, enter new healthcare markets and expand partnerships with medical societies, publishers and health systems. - learn more

    LA Exits

    • Breastfeeding platform Swehl was acquired by Willow Innovations alongside infant-feeding technology company Momtech, with financial terms undisclosed. Swehl’s educational resources and community programs will anchor Willow World, a new platform designed to expand Willow’s business beyond wearable breast pumps and support mothers across more of the postpartum journey. - learn more
    • SmartLess Mobile was acquired by Noble Mobile and will transition to the Noble brand as the companies combine their efforts to offer simpler, more affordable wireless service. Existing customers will retain their plans, prices, phone numbers and T-Mobile 5G coverage, while gaining the ability to use their data in Mexico and Canada at no additional cost; financial terms were not disclosed. - learn more

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      Your Bank Wants to Cancel Your Subscriptions

      🔦 Spotlight

      Hello, LA.

      Somewhere between the streaming service you still use and the free trial you forgot to cancel, recurring payments have become a surprisingly complicated part of modern financial life.

      Los Angeles-based ScribeUp believes your bank should help manage them.

      The fintech company raised a $13M Series A led by Curql, with participation from Mucker Capital and Service Ventures. The financing includes $10M in equity and a $3M venture debt facility, bringing ScribeUp new capital to expand its team, accelerate sales and further develop its AI-powered bill-management technology.

      The product is designed to live directly within the apps of banks, credit unions, fintechs and neobanks. Instead of simply showing customers that a recurring charge occurred, ScribeUp gives them tools to do something about it.

      That could mean canceling a forgotten subscription, changing a payment method, accessing an advance or exploring refinancing options for an outside loan, all without leaving the financial institution’s app.

      It sounds like a useful feature. It is also part of a much larger contest over who gets to manage the consumer’s financial life.

      For years, banks have held customers’ money while third-party apps have increasingly helped them understand and manage it. Budgeting platforms organize spending. Subscription services identify recurring charges. Fintech apps recommend ways to save, borrow or invest.

      Now AI assistants are beginning to combine those functions into a single interface capable of not only analyzing financial information, but acting on it.

      That creates a risk for traditional financial institutions. If consumers begin turning to an outside app whenever they need to cancel a service, manage a bill or make a financial decision, their bank could become little more than the infrastructure beneath someone else’s customer experience.

      ScribeUp offers banks a way to compete without building that technology themselves.

      Its platform combines recurring-payment information with the financial context a bank already has, including balances, cash flow and payment timing. That allows a financial institution to do more than flag an upcoming charge. It can potentially recommend and execute an action based on the customer’s broader financial position.

      ScribeUp says its technology is already used by more than 60 banks, credit unions, fintechs and neobanks. It can be added through an API, software development kit or embedded interface, allowing institutions to introduce bill-management features without creating the underlying infrastructure from scratch.

      The new funding will support more advanced AI capabilities that can take action across different billers. That distinction matters. The first generation of personal finance software helped people see where their money was going. The next generation wants permission to do something about it.

      For banks, the opportunity is straightforward: become more useful before another app takes their place.

      For consumers, the appeal may be even simpler. Most people do not want another financial dashboard. They want the unwanted charge to stop.

      The next battle in banking may not be over who holds your money.

      It may be over who gets to press cancel.

      More from this week’s LA startup and venture scene below.

      🤝 Venture Deals

        LA Companies

        • International Dance League raised a $15M Series A led by Elysian Park Ventures, with participation from Sony, KB Partners, APEX, Yamaha Music Innovations Fund and October Ventures. Following a debut season that sold out all six events and generated 2B views, IDL will use the funding to expand its tour, strengthen team and dancer operations, improve broadcast production and develop new fan experiences for 2027. - learn more
        • Santa Fe Springs-based DrizzleX raised a $6.8M Series A-2 led by Israel Investment Fund Group, with several of the water-management platform’s own customers also investing. The company will use the funding to expand sales, streamline hardware manufacturing, build partnerships and develop new products that help property owners detect leaks, reduce water use and lower operating costs. - learn more
        • POV Beauty raised an undisclosed Series A led by Silas Capital, with participation from RÉDO Capital and existing investor Imaginary Ventures. The skin-prep brand will use the funding to build on its nationwide Sephora launch, expand its team and TikTok Shop presence, and develop more skincare-makeup hybrid products. - learn more

        LA Venture Funds
        • Chapter One participated in Warp Sciences’ $215M Series A, which was led by Lightspeed and included a large group of venture firms and angel investors. The company is building AI-powered, increasingly automated laboratories that will manufacture and test molecules for drug developers, aiming to accelerate preclinical research while expanding scientific infrastructure in the U.S. - learn more
        • Capital Group participated in Legora’s $550M Series E, which was led by Atreides Management and valued the legal AI company at $8.8B. Legora will use the funding to expand across the U.S. and international markets while developing new capabilities for its agentic operating system, which is used by more than 140,000 legal professionals. - learn more
        • Group 11 participated in CapitalOS’ $21.9M Series A, which was led by LGVP and included WEX Venture Capital, Great North Ventures and Night Capital. CapitalOS will use the funding to scale its infrastructure, which enables B2B software platforms to quickly offer financial products while outsourcing functions such as compliance, risk management and underwriting. - learn more
        • Starshot Capital participated in IMIO’s $12M funding round, which was led by Sofinnova Partners and included Chipotle’s Cultivate Next, Grow Together Salinas, Earth Foundry and Serra Ventures. The agricultural biotechnology company will use the capital to build a Chicago headquarters, laboratory and manufacturing facility for its freeze-dried microbial products, which are designed to improve soil health and crop yields. - learn more
        • SUM Ventures participated in Vectorial’s $3M seed round, which was co-led by Smilegate and SenseAI Ventures and included several investors connected to UC Berkeley and Stanford. The startup will use the funding to scale its AI-powered consumer research platform, which lets companies test products, marketing campaigns and AI agents against simulated audiences before launching them publicly. - learn more
        • Wave Function Ventures participated in Stellios Technologies’ oversubscribed $5M pre-seed round alongside Sofreh Capital, Cubit Capital, Mana Ventures, Atoms & Bits and other investors. The Austin-based company will use the funding to deliver its first high-power microwave systems, establish domestic research and manufacturing facilities, grow its team and advance technologies spanning directed energy, compact fusion and next-generation propulsion. - learn more
        • Upfront Ventures participated in Daytona’s $60M Series B, marking the Santa Monica firm’s third investment round with the company. Led by FirstMark Growth, the financing valued Daytona at $1B and will help the startup expand sales and engineering for its cloud infrastructure, which provides secure virtual computers where AI agents can execute tasks. - learn more
        • Core Innovation Capital participated in Delegance Brokerage’s $3.1M pre-seed round, which was led by Grit Capital Partners and included Gilgamesh Ventures and Outside VC. The AI-powered commercial insurance brokerage will use the funding to hire licensed brokers and engineers and expand partnerships as it promotes a flat 5% fee model in place of traditional commissions. - learn more
        • Core Innovation Capital participated in Prism Data’s $20M Series A, which was led by Story Ventures and included FINTOP Capital, Obvious Ventures, 1st & Main Growth Partners and Mana Ventures. Prism will use the funding to expand its cash-flow underwriting technology, AI infrastructure and data science team while growing across the U.S. and Canada and preparing for international expansion. - learn more

        LA Exits

        • Sanctuary has been acquired by WSG Brands, adding the contemporary women’s label to a portfolio that includes Von Dutch, Nasty Gal and Allbirds. The purchase price was not officially disclosed, though earlier documents placed it at $67M; WSG plans to expand Sanctuary internationally and into new categories, while founders Ken and Debra Polanco will remain involved. - learn more
        • SecureNet Solutions was acquired by CompassMSP, expanding the managed IT and cybersecurity provider’s presence on the West Coast. The deal gives SecureNet’s real estate, healthcare and professional services clients access to CompassMSP’s national cybersecurity, compliance and advisory resources while retaining their existing service team; financial terms were not disclosed. - learn more

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          Hello Sunshine Sold for More Than $900M. Now Reese Witherspoon Is Buying It Back.
          Image Source: Hello Sunshine

          🔦 Spotlight

          Hey there, LA.

          In Hollywood, every successful story eventually gets a sequel. This one brings Reese Witherspoon back to the company she built.

          Five years after selling control of Hello Sunshine in a deal worth more than $900M, Witherspoon is partnering with French production group Mediawan to buy back the Los Angeles media company.

          The reported purchase price is in the low-to-mid eight figures, significantly below Hello Sunshine’s valuation when Candle Media acquired a controlling stake in 2021.

          That difference tells a larger story than any single Hollywood transaction.

          Hello Sunshine was one of the most prominent acquisitions made during the streaming boom, when platforms were spending aggressively and investors placed enormous value on production companies with recognizable founders, established audiences and libraries of intellectual property.

          Witherspoon had built all three.

          Founded in 2016, Hello Sunshine developed its business around stories centered on women, producing projects including “Big Little Lies,” “The Morning Show,” “Little Fires Everywhere” and “Daisy Jones & The Six.” It also turned Reese’s Book Club into an influential audience and discovery platform that now reaches 6.2 million readers and drives approximately $900M in annual U.S. book sales, according to the company.

          By 2021, that combination of talent, intellectual property and direct audience access looked like the foundation of a next-generation media empire.

          Candle Media, backed by capital from Blackstone, acquired Hello Sunshine as part of a broader effort to assemble a portfolio of entertainment brands. The company also purchased businesses including Moonbug Entertainment, ATTN: and Faraway Road Productions.

          Then the streaming market changed.

          Entertainment companies became more disciplined about content spending. The race to accumulate subscribers gave way to pressure for profitability. Production budgets tightened, consolidation slowed and some of the valuations assigned during the streaming boom became difficult to maintain.

          Hello Sunshine’s return to founder-led ownership reflects how dramatically the media landscape has changed since 2021. It also gives Witherspoon an opportunity to regain greater influence over the company at a moment when its core assets may matter more than its former valuation suggests.

          Under the new ownership structure, Hello Sunshine plans to refocus on premium film and television, Reese’s Book Club and new storytelling and distribution formats. Mediawan brings an international production network, while Witherspoon brings something harder to manufacture: a trusted personal brand and an audience willing to follow her recommendations from books to screens.

          That relationship with consumers is increasingly valuable in a fragmented media market. Studios can finance productions. Streaming services can distribute them. Far fewer companies can reliably convince millions of people to care before a project is even released.

          For Los Angeles, the deal reflects the increasingly fluid boundary between entertainment company, consumer brand and technology-enabled audience platform. The most resilient media businesses may not be those producing the greatest volume of content, but those that own a direct relationship with a specific community.

          The first Hello Sunshine deal captured the optimism of the streaming era.

          The second may offer a more focused model for what comes next, with the company once again guided by the founder who understood its audience from the beginning.

          Hollywood loves a comeback story.

          This time, the company is making one too.

          LA Tech Week’s Final Stretch

          Still making the most of LA Tech Week? We have organized the remaining events by location to make planning the weekend a little easier:

          Event schedules may change, so confirm the latest details with the organizer before heading out.

          More from this week’s LA startup and venture scene below.

          🤝 Venture Deals

            LA Companies

            • Goodweek raised a $12M seed round led by Adara Ventures to expand its AI management platform for small and midsize businesses. The company brings tools such as ChatGPT, Claude, Gemini and Mistral into one governed workspace and will use the capital to accelerate sales and expand into Latin America and Asia. - learn more

            LA Venture Funds
            • Fika Ventures co-led Otter Health’s $8M seed round alongside Evidenced Capital, with participation from Slow Ventures, Metrodora, CoFound Partners, Patient Capital, SemperVirens and Layout Ventures. The startup will use the funding to scale its AI-powered platform, which helps healthcare payers and providers reduce unnecessary care and manage quality without relying as heavily on traditional prior authorization. - learn more
            • Nant Capital co-led Prolific Machines’ $50M Series B2 alongside Atoms & Bits, bringing the biotechnology company’s total funding to more than $100M. Prolific will use the capital to scale its light-controlled biomanufacturing platform, expand pharmaceutical and biotech programs and begin early work on tissue and organ fabrication. - learn more
            • Family Fund participated in Allara’s $30M funding round alongside new investors Camino Partners and Foreground Capital, while existing backers including Index Ventures and GV increased their commitments. The women’s healthcare company will use the capital to expand AI-enabled care, grow its provider and enterprise partnerships and advance research into hormonal, metabolic and reproductive conditions. - learn more
            • Vida Ventures participated in Soufflé Therapeutics’ oversubscribed $135M Series B, which was led by Juvia Group. The biotech will use the funding to move three lead programs into clinical trials for muscular dystrophy, heart failure and muscle and metabolic disorders while advancing its broader pipeline of targeted RNA therapies. - learn more
            • FJOR participated in LightSprint’s $6.1M seed round, which was led by 645 Ventures. The AI software platform will use the funding to expand its enterprise product and grow its engineering and go-to-market teams as it helps employees across departments make changes to company codebases while keeping engineers in control. - learn more
            • Muse Capital participated in Collective X Health’s oversubscribed $3.2M pre-seed round, which was co-led by Council Capital and Anthemis Female Innovators Lab Fund. The women’s health intelligence startup will use the funding to expand its female-focused research and data platform, meet growing enterprise demand and support new research aimed at closing the women’s health data gap. - learn more
            • Act One Ventures participated in Intake AI’s $2.5M pre-seed round, which was led by Kapor Capital. The startup is building AI agents that automate clinical-trial setup and operations, helping research teams turn protocols into documents, search study materials and transfer approved forms into existing systems. - learn more
            • M13 participated in Ultra’s $62M financing, which included a $50M Series A led by Framework Ventures. The Brooklyn-based robotics startup will use the capital to expand deployment of its AI-powered warehouse robots, which handle packing, sorting and other fulfillment tasks and have already processed more than 500,000 orders. - learn more

            LA Exits

            • Farcaster is being acquired by Balaji Srinivasan’s Network School from Neynar, marking the decentralized social network’s second change in ownership this year. The deal includes Farcaster’s app, protocol repositories and related products, with its new owner planning to introduce a rules-based “social smart contract” governing full participation on the platform; financial terms were not disclosed. - learn more
            • Creator Authority has been acquired by Billion Dollar Boy Group, bringing the agency’s B2B influencer marketing expertise and LinkedIn specialization into BDB’s global creator business. The deal will help Creator Authority scale its work with enterprise brands while strengthening BDB’s presence on the U.S. West Coast and expanding its B2B creator marketing capabilities; financial terms were not disclosed. - learn more
            • Burbank-based CareerArc was acquired by AI hiring platform Humanly, with financial terms undisclosed. The deal combines CareerArc’s recruitment marketing and social recruiting tools with Humanly’s AI-powered candidate engagement, screening and interviewing platform, creating a more connected system for employers managing high-volume hiring. - learn more
            • Ethiqly was acquired by Carnegie Learning from Owl Ventures and the company’s management, with financial terms undisclosed. Carnegie Learning plans to integrate Ethiqly’s AI-powered writing platform into its literacy offerings, helping students improve their writing while giving teachers greater visibility into the drafting, revision and learning process. - learn more

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