Saronic Founders: Autonomous Warships, China's 230X Advantage & Swarms of Robot Ships

All right, everybody, welcome back to the all in interview series. I am thrilled, really thrilled because Seronic is a defense company that has do been doing amazing work. And we are so lucky to have the co-founders here on the program. Welcome to the program. Dino Mavrukis, how are you, sir? Doing well. Thanks for having us. And your co-founder here, Vib Altencar, let's talk a little bit about Seronic and we're going to get into everything. But you were in the news, you were in the news because you're making autonomous ships. And one of these was used recently in the straight-of-hormos. I understand. As your wealth grows, have you noticed how much more complex things get between investments, tax strategy and estate planning, managing in all is a full time job that you didn't ask for? Creative planning can help their coordinated team of investment managers, CPAs and affiliated estate attorneys can do much of the heavy lifting so you don't have to. Creative planning where wealth works together. Go to creativeplanning.com/allin. I got to start there, Dino. Tell us about the mission, tell us what happened. This is the first time an autonomous ship has ever rescued folks in the field. And then we'll get back into your history and everything. But I think we got to start off with this story because it's incredible. It's just a huge story. And I can't get into too many specifics of the operation and the mission for obvious reasons. But before we get into what it means for the country, what it means for our company, I mean, without saying the most important thing is that those two pilots came home safely regardless of how they got there. Right. Now, what we were able to demonstrate through this partnership with the Navy, like for us, the Navy actually trusted us in this moment. Lives are on the line. We're going to send this autonomous platform to go and rescue these folks. This is not a patrol. This is not maritime domain awareness. This is the highest stakes of the highest things. There's down to American pilots in the Straits of Hormuz. And they're like, of course, there, which you actually see right over my right shoulder, which is our 24 foot fully autonomous speedboat for those that don't know. So we're going to use that to rescue the pilots. And that's that's actually like a milestone moment for the country. And I can tell you, I'll tell you a personal story firsthand. I kind of what this means. But you know this, like leaving people behind in the US military, just it's not a thing. The US military does not do it. Right. Like I was in the Navy SEAL teams for 11 years from 2004 to 2015. My last five years were on SEAL team six. I personally experienced 2005. There were four SEALs trapped on a mountainside in Afghanistan. And then helicopter got shot, got shot down while going to rescue them. So what we were able to prove in this moment was that you can go and rescue people without putting additional soldiers in Hormuz way. That's, that's the impact of what this had. That's what it means for the country. And for our company, it was just an extremely proud moment where the Navy trusted us in this high stakes environment. Absolutely incredible. And obviously, thank you for your service. And I know you can't get into too many details, but I've been reading all about it. And I got a wonder with these two pilots, did they know that this was an autonomous ship and the ship comes rolling up and they're like, somebody sent them a message, hey, you can get picked up by the autonomous ship. Grab the side of it, climb on board. Like what's the protocol for the autonomous ship picking up to folks? Are they swimming out to it? I just got to get a little color on this before it becomes a movie. It's the first time that it happened, right? And when a ship when a boat pulls up to you and there's nobody on it, you know, you can very quickly deduce that it's fully that it's an autonomous boat. And you know, these pilots were in the water for, I don't even know how long they're in a completely contested environment. We're in a conflict with Iran. They're in the streets of Hormuz and we can go through the dynamic there. But they looked at this platform and said, that's my way home. Right. That's how I get out of here. I love it. All right. Let's step back a bit here. You're in AVCL. Vib, you've worked in this space for a while. You previously worked at Andrew. I understand the mission as I understand it for the company is to greatly increase our ability in America to produce ships. And for people who don't know the amount of tonnage, the number of ships that we are able to make in America and most Western countries is very low. But there's an adversary in the Pacific who is able to produce a lot of ships. It's known as the Chinese Communist Party. So maybe from first principles, you could just explain what you're building and why it's important and just how insane the incompetence of the West in terms of building ships has become. I mean, we are really bad at making ships right now. Am I correct? We're beyond that. Let me, I'll take a step back and just kind of highlight where we're at. And then I'll let Vib go through what we're doing about it. How, how we're changing that dynamic, but Jason, what you were saying, right? Just to put it in context, the United States can build 100,000 gross tons of ships over here. Gross tonnage is this biometric measure of ship. So if you build, you know, a 200 foot ship, that's different than an 800 foot ship, but let's compare apples to apples, 100,000 gross tons. The Chinese, which you were referencing, can build 23 million gross tons. So they can outbuild the US 230 to one. And it wasn't always the case, right? 30 years ago, the Chinese didn't have this capability. They had 5% of the world shipbuilding capacity. Today, they have 57% of the world shipbuilding capacity. And actually, that problem's getting worse because the communist parties just constantly subsidizing the entire industry. So they're undercutting the commercial market on price. They're not just subsidizing the direct cost to build. They're subsidizing raw material and labor costs. So the ship built in the United States is actually five to six times the cost of that same ship built in China. And so they keep getting more and more orders. So that number is a 57% is just going up. How did they get that capability? Is that because as a manufacturer to the world, they needed to ship out products. So they did this in a commercial way for first or was this always very intentionally? We need to own the South Pacific. It involves around the commercial market and then I'll talk about I want to talk about the status of our navy. Where the naval fleet is today, what that means and then where the Chinese Navy is and where that's going. Because again, 30 years ago, the Chinese Navy was a littoral backwater Navy. Today, they have nuclear submarines, aircraft carriers and hypersonic missiles. So there's a massive, massive change over the last 30 years. And what's happened in the US shipbuilding industry, it's completely declined. So the US naval fleet has 296 ships today. There's a congressional mandate statutory minimum of 355 ships that was set by Congress in 2018. That was eight years ago. Last year, we built nine ships, but we retired 19 naval vessels. So we're going in the wrong, the completely wrong direction. The Chinese delivered somewhere in the ballpark of 30 ships. Their fleet size is around 370. They'll be at 450 before you know it. But the commercial market is where that discrepancy lies, even larger, right? They delivered over a thousand commercial ships last year. The United States built five five, one, two, three, four, five, one hand. Wow. So if a conflict actually kicks off and we saw this in the US and World War II, where we had the production capacity, where we're building thousands of vessels every year. If a conflict kicks off, that commercial capacity isn't going to go to building cargo containers anymore. It's all going to flip to defense capacity. And it's going to be building for what the Chinese Communist Party needs to win a conflict. And that's what we have to be building towards. That's what we're doing at Seronic. That's why we're thinking, okay, how do we build mass? How do we build scale in whatever it is that we do? And so how do you do it, Viv? I would think and listen, I'm a neophyte here. But if these are autonomous ships, well, you can remove things like you don't need beds. You don't need a commissary and you don't need latrines. And I don't know what percentage of a coarser or battleship are there to support humans on the ship. But I got to think it's half the mass of it is to keep humans on it. Am I directly correct? I think half is a little excessive, but there is a significant percentage of the components, the cost, the labor that actually goes into catering to human beings on board. I would say at a high level, you're really reducing the complexity of the entire product. Right? You don't need to worry about a separate electrical system for humans. You don't need to worry about, as we mentioned, doors, bathrooms, stairs, etc. And then at the end of the day, you can actually start to end to end to optimize a lot of different things. So even if you look at coarser, for example, you know, if you were to buy a commercial 24-foot boat, it's unlikely to go a thousand out of the mouse. It's also unlikely to drive and have the control authority of the boat that we've built here. Because you don't have to worry about a person feeling, you know, you take a key forage in the middle of the ocean. Yeah. And so you can actually optimize across a bunch of different areas, naval architecture, the speed, range, payload of the craft itself. And then again, reduce a lot of the complexity where you're removing subsystems that are meant for humans. Yeah. And the Corsair, which is my favorite ship, just based on the name, I believe for my research, this is originally meant like a pirate ship or a private tearing ship, but it's, is it now standard lingo that that's a 24-foot boat and has a certain profile, you know, is that how these designations come about? The names of these ships? I mean, I wouldn't say that Corsair is now universal 24-foot autonomous surface vessel. It's the name of our product lines and we chose it very purposefully and we chose all our names purposefully. Even the name of the company, I mean, we were talking about, you know, our Greek heritage before the show and where that came from. You know, the Seronic Gulf is a Gulf off the coast of Athens where the Battle of Salam is happened. It's one of the most famous naval battles in history. It came after the Battle of Thermopoly or the famous stand of the Spar 300 Spartans and it was the naval battle between the Greeks and the Persians where the Greeks were wildly amassed. The Persians had much, much larger ships. They had a much larger fleet and the Greeks were able to lure them into this narrow straight and use smaller, more maneuverable products, ultimately defeat the Persians. Now, cost is part of this in terms of these ships in the field and the number of ships. My understanding of our contemporary China is that they don't build a lot of big ships. They build a lot of ships. So they've got a lot of smaller and very, very number of ships. If I'm correct there, then the cost becomes the issue because building a bunch of aircraft carriers, I keep hearing that supersonic is going to take out all these aircraft carriers in the first 15 minutes. Vib is that true? What we hear that, hey, we need smaller ships, faster ships. What is the cost of something like the corsair that you used on this incredible mission? Yeah, I would say at a high level, the goal is mass, large scale of charitable mass. If an aircraft carrier takes 10 years to build and $13 billion, you're not really achieving that. I think there's always going to be a role in responsibility for a craft like that. But ultimately, you're right. If you're big and very obvious to find and you can find you from space, etc., it's a real risk. When you reduce the overall cost of just doing things in the ocean, that's ultimately where the autonomous piece comes in. You can deploy at scale, you can monitor a larger body of water with less people. Ultimately, what you're really getting to is removing people from harm's way. When we think about designing and thinking through the price points of these things, the comparison of the man crafts isn't really necessarily even comparable as you get into larger ships. For us, it's really a question of what is the cost that you would typically have to use humans for and how much is that actually being reduced by having a large autonomous fleet? Corsair is a million bucks or something, Dino. The corsair costs about a million. I want to go back to, we'll get that. I want to go back to one thing you said earlier. It's like China's building both very large ships and a lot of ships. They're doing it all. When we think about, how do you actually change the paradigm for the US Navy? Let's actually boil it down to unit economics. Let's think about this like a commercial company. How do you mention payloads? What are you actually moving on the ocean? One of the most important metrics is VLS tubes, so vertical launch systems. Basically, how many big Tomahawk missiles can you carry on a ship? How much firepower are you fielding? Let's use an example of that. A destroyer, a naval destroyer costs about $3 billion. $3 billion. I'm not even getting into the sustainment and maintenance costs over the life cycle of the destroyer. I'm just talking about what it costs to buy. If we do that, it's 10 billion over 30, 40 years. $3 billion, $6 to 8 years to make. You can field about 96 VLS tubes. I'm going to round up on to make that 100 for easy math. On average, you're fielding somewhere between 10 to 15 VLS tubes per year at a cost of $30 million per tube. Marauder, I won't give you the exact price or cost, but can reduce that cost by a significant amount. But we're building 20 marauders for, we're going to be building 20 marauders per year at our shipyard in Louisiana. Now you can field, we can carry the equivalent of 16 VLS tubes on the back of that 180 foot fully autonomous ship. Now you can field 320 VLS tubes per year as opposed to 15. You can do it at a fraction of the cost. This is how you actually save the taxpayers. Hundreds of billions of dollars. You get more capability into the field faster. That's just extraordinary thinking about it. What do you lose by not having humans on it? Are we going to be faced with a moment in time where these are kind of like drones, where there's no pilots. They're just pilots in a shipping container dropped somewhere either in the middle of America and doing it remote like we've done. Is that the future of warfare with these ships or and what do you lose when you don't have a team there on the boat? What is the criticism valid or invalid that people have of unmanned ships? Well, I'm going to let Vim talk about the way that we're using software because I think the criticism to your question is, well, what happens if we're in the middle of the ocean and the ship breaks down? Who's going to fix it? It's not that we don't need this technology. It's folks that aren't used to technology saying, oh, how's the technology actually going to work? That's what we're proving out every single day. To your point of like, what do you lose by not having people on them? Look, it all boils down to the mission. This is why we partner so closely with the Navy. This is why we work with actual operators. Like, what are you using? What are you delivering? If the mission is long-range fires, we're packing a bunch of VLS tubes on the back of our honor. You actually don't lose anything, right? You're just delivering those capabilities into the field while keeping people out of harm's way. And that's a very, very important part of the equation. But if our ships, let's be clear, like if our boats and ships aren't accomplishing the mission, then they're not relevant. They're not going to be used in the first place. And there is going to be some mix. I don't know what that mix is. I don't think anybody really knows what that mix is of man and unmanned ships. So what you're going to see in the Navy is like a hybrid Navy. So the things that you're missing from having people on the ships forward deploy decision makers in the environment, you can actually have out there on man ships. But you're using unmanned ships to put into combat areas and conflagures to keep those people very safe. Fib, take us through the production of these. How do you achieve speed at it? You know, friend of the potty lawn must with the Teslas. Over time, he eventually built the full stack. In the beginning, if you had a Tesla, you would look at the the shifter and you'd be like, hey, that looks like my Mercedes. And that's because they had their steering column from Mercedes, one of the early investors. The HVAC was from somebody else. But eventually, he had materials coming in one side of the factory. Cars coming out the other and he made every single thing in that car. He was now no longer dependent on any third party manufacturers or a supply chain, you know, and famously the HVAC, I think in the Model 3 and Y when it came out, reduced massively the drain on the battery. Right. So it's purpose-built for that mission. So I'm assuming you're doing that from first principles. But what's the secret to this rapid production and lower cost production? Yeah, listen, I think there's, you know, within the shipping industry or large, there's a bunch of different challenges of why the production isn't as high as it should be. And one of those core reasons and the Navy's talked about this extensively is investing in the supply chain. Right. When you don't, when you only build five commercial ships a year, your GENCET manufacturers, the marine engine manufacturers also don't have to produce at a very high rate. So one of the things that we get the luxury of doing by being vertically integrated is that we get to work with these manufacturers directly, do non-referring engineering work, invest in really digitizing a lot of the components that historically have been very analog. Right. You know, you asked earlier, like, what do people do on the ship? So what are they going to do if the ships are autonomous? Well, when you think about, you know, do you know, do you know, mentioned the lifecycle of these ships are 30 years? You think about a ship that was built 30 years ago. You know, you have people that are doing extremely manual things in the engine room that today should be extremely trivial to automate through software. And so a lot of that work actually gets completely absorbed by the software stack. Consider to worry about it. And as we choose components, we invest in the supply chain, we invest in the additional base, we actually help bring all of these analog components that for a long time were, you know, meant to be operated by humans. We give them software APIs, we make sure that they can be controlled by, you know, MCP or software sex somewhere else and can be, you know, remotely accessed and whatnot. So that's a complex thing. It's going to go down massively when you're building one of these. Yeah. Absolutely. Yeah. And, you know, frankly, I don't think the person who's sitting in the engine room is super thrilled about it anyway. No, not great. Actually, you're actually changing the, you're democritizing the decision making, right? Like now there's going to be, you have more mass out in the ocean. More sailors can be making decisions about what those, what that mass is going to be doing and where assets are going to be instead of worrying about, you know, cool into pressure and an engine, right? And so, you know, when we think about the actual design, there's a lot of different barriers. There's some components that are commercial off the shelf, right? Elon in the early days, from a compute perspective, they had to invest in ASICs, right? The compute stack wasn't there to run large models and run inference at the speeds and power budgets that they wanted to. In 2026, it's a totally different game, right? And so there's a lot of different parts of the supply chain that sometimes we're looking at investing in the industrial base and making sure that our engine manufacturers and gents at manufacturers are keeping up. On the other side, there's particular components that were like, hey, the marine industry actually hasn't had this level of investment in a long time, so we're going to have to build this in house. A couple of examples around that are related to a lot of electronics related to the sensors and compute, but a bunch of different things there that help us build and assemble quickly. I'm going all in. Starting a business usually means juggling a bunch of different services just to look at. Not anymore. With Northwest Registered Agent, you get a complete business identity all in one place, a business address, domain, website, phone number, and more. With privacy protection, built in from day one, don't spend hundreds or thousands on services you can get from Northwest for free. Visit northwestregisteredagent.com/allinfreight and start using free resources to build your business today. Let's talk a little bit about Dino on the business side. How you work with the Department of War, formerly known as the Department of Defense, Emile Michaels and a bunch of the folks over there are really focused on getting startups, essentially, like you are, more contracts. You also are moving out. I assume of this cost plus world and you're just figuring out, hey, what's the right price for this? Take us inside that paradigm shift, you have these primes and then you have these upstarts and it seems like based on history, the incumbents sometimes don't take this lying down. Take us inside the paradigm shift from cost plus to what these, I guess they call the new primes, like yourself and Andrew, are doing. Yep. I'll just define cost plus service, listening. It basically means, hey, we're going to build you something, Mr. Government and however long that takes, however much it costs, you're just going to pay us 10 to 15% on top of that. So I'm actually incentivized, and I'm not saying there's malicious intent, but I'm incentivized to make it take longer and cost more because if it costs $100 million, well then I only make $15 million. But if it costs $1 billion, then as a company, I make $150 million. So there's this perverse incentive to drive up costs. Now that's not the only reason the industry is where it is today, but we're very encouraged by the push from the administration to adopt things at speed and scale and to do that quickly and to do that differently and to move away from cost plus. You had to, like, we invest our own capital to date. We're just about four years old. We've raised $2.5 billion in private capital or pouring that into R&D. I remember when we decided to build Marauder, again, 180 foot ship, Viv and I were talking and it was like, who's crazy enough to go and build a ship on I-Rat? And it's like, well, we are because that's what the country needs. That's what it demands. That's what we're going to go do. And our investors are giving us the capital to go do it. They're actually entrusting us with that capital. That's the reverse of what's happening in the large primes where their investors are kind of demanding share buybacks or saying, give us our capital back. So the country very much needs us to build for the needs companies like us to build for the future. And when you look at what the administration is doing, even just in shipbuilding, just recognizing that shipbuilding is a critical strategic industry, right? The president, one of the first things he did was put out the maritime executive order that was followed with the Maritime Action Plan, right? There's ships exiting in Congress. He had the Secretary of War give a whole speech on defense acquisition reform, talking about how we're going to push the department to be better, to move faster, to work with companies like us that are building on firm fixed price contracts that are focused on delivering at speed and scale and driving down cost for the taxpayer. So all of that is extremely encouraging. But I also want to be clear here on the flip side. We're in the early days, Jason, like very early days. When you look at the overall defense department of wars budget, 1%, 1% goes to autonomous systems. That's not nearly enough. Make that 5%, make that I don't know the right mix, but it needs to go up and it needs to go up quickly. I'll just add one more thing that historically shipbuilding, the design is bifurcated from the builder, right? Because someone gets paid to do the design and the ground up general assembly and all that. I think it's handed off to a totally different person to build a ship. And I think there's a statistic out there that's like 70% of sequence critical components on some Navy ships or sole source suppliers, like single source suppliers. And so to Dino's point, it's not just that you're incentivized to take longer. It's that you're not incentivized to change that necessarily because you know that you're still going to get paid. Whereas like from our perspective, when you own the design, you own the shipyard, you know, software engineers, shipbuilders, naval architects and welders, then I'll sit down and eat lunch together in the yard. There's end-to-end optimizations that you get that, you know, the system from a historical perspective is what's inside of the game. Yeah, let's do a little look at what happened in the straight of Kormuz. We weren't able to control it completely. It doesn't seem like anybody in history has been able to control it. If we were to fast forward and you had your entire fleet, you had let's assume not unlimited, but massive capacity, how would you be able to secure something like the straight of Kormuz with these autonomous vehicles? What might that look like? Take us into a scenario five years from now. What would it take? That's the type of scenario that we're building for. I think before talking about the scenario, let's talk about the straight of Kormuz itself, right, the environment, the part of the world. What neighborhood is it in? Right. It connects, so you have the Persian Gulf, which is 200 miles wide, which narrows down to a 20 mile wide strip, which is the straight of Kormuz, and then it connects to the Indian Ocean and connects these large oil producing countries to global markets. On the one side of the Persian Gulf, you have Iraq, Kuwait, Saudi Arabia, UAE, Qatar, and Oman. And on the other side of the Persian Gulf, the North side is all controlled by Iran. So now Iran is saying, well, how are we going to disrupt traffic in the straight of four moves? Well, it's only a 20 mile wide stretch. I can use missiles. I can use fast attack vessels. I can use naval mines. I can use cheap drones because I don't have a large distance to cover. I can launch these things anywhere from short. So it becomes this completely chaotic environment that's sending in naval destroyers and two or trying to get commercial ships pass becomes extremely dangerous. So using large numbers of autonomous vessels, you can combat these threats in completely different ways. You can offer scale, persistence, and risk reduction in ways that, you know, man vessels just can't. And again, we'll get into too many of the specifics on the types of operations that we're building towards. But autonomy is a way to counter these effects, these, these, these, um, these effects that are overwhelmed are like really aren't meant to be countered by traditional man ships alone. We can counter that with scale and technology. You keep people out of harm's way. Well, you have some small ships. Yeah, you got the cut list and you got the spyglass in this, uh, you know, build out those are six foot, 15 foot or whatever. We actually started with those and I'll give you an interesting story. We actually don't build those aren't. We haven't productized those. Those were great sub-scale demonstrators. But our real flagship product is Coursaire. And when you talk about again, the, the scenario in the straight-of-for-move and what type of volume can we bring there? Like, it's not only five years in the future. We can build 2000 Coursaire per year right now at our manufacturing facility in Austin. So I know you live in Austin. We'd love to show you around when you see it. When you see it, it actually comes to life. You're like, oh, wait, you can actually build thousands of these vessels every single year. How many would you need? A thousand, five thousand in the straight-of-for-move and a thousand. I don't think you need a thousand. It's a 20 mile wide straight. So you're just going to, and they, this is their offensive strategy. They have these speedboats that they use. I don't know what they're called, but they call them fast attack vessels. Fast attack vessels. These guys essentially are kamikaze, right? They just zip in, you know, no regard for safety in their life, et cetera. And they will attack. They're using fast attack vessels. They're using cheap drones. You have to be able to counter UAS capabilities. They're using mines. They're just floating mines into the straight without regard for what those mines may set off. So it's a really complicated environment that you need to bring a lot of capabilities towards. Yeah, but it sounds like, Vib, with artificial intelligence, which is the next card that I think is going to turn over. You put these course sares out there. Could they, with AI, be able to, you know, be using satellite data from planet or whoever's providing it to just, or a military satellite and just zip out there and no say, somebody's putting out some mines. Hey, somebody's putting out some of these fast attack vehicles just intercept them. And now they have an actual cost to human life and a limited amount of resources. And hey, we're America and we have you guys building ships at scale. They don't have this ability to build AI-based ships. So talk about what AI on these ships could do eventually. Yeah, so I would say today, you know, there's a bunch of different, you know, machine learning applications that run on our boat today. There's heavy amounts of compute on all over crafts that allows people to have tons of capability, whether it's, you know, the navigation and kind of the autopilot or self-driving of the craft itself or compute for payloads, whether that's counter UAS, as Dino mentioned, or a bunch of other things, really. There's a variety of different mission sets. The end state here is that, you know, you have a distributed fleet across the ocean that, you know, in variable, like, as an ocean is a tumultuous place by default without war zone, like the ocean is still bad. You know, saltwater is your intended as you lose comms. So there's a bunch of different running communications on this. There's a bunch of different sensors. All of those things are kind of our network together with ML with a bunch of different software components of the software staff to make sure that you can basically translate intent from a commander or a sailor and then result in a mission outcome. Let's talk, you know, a little bit about the adversary, China, and they have started to put weapons on robots. I'm assuming that they're doing the same if they're willing to put it on a, you know, one of those dog robots, like the spot robots, they're putting weapons on them. They're demonstrating it. Whatever they're demonstrating, they've already got in production. Let's just call it what it is. And they're not signing some UN treaty to not put autonomous and AI weapons. This is a different type of adversary. And I'm sure North Korea and another bad guys are doing similar things. We have, I believe, treaties where we're not allowed to put weapons and use AI-based weapons. Am I correct about that in the West here? There is a autonomous weapon system standard called 3109 that basically outlines exactly how AI can be used on an autonomous system. Yeah. Tell us all about that. Like, or because this is the Robocop scenario, this is the robotic soldier or the robotic boat that's able to engage the enemy without a human, you know, if it loses comms or to do a kamikaze mission, which seems like something we might have to do. These are things we might have to do, do you know, versus the Chinese, because they're not signing these treaties. They are not thinking ethically. They are not respecting the declaration of human rights. They've got their own playbook. Yeah. And I think the important thing to articulate here is especially when you use the kind of Robocop example and just to kind of quell people's fears a little bit is even in that example where we're sending boats off the off of Taiwan and we're in the Taiwan straight and they're engaging, we're still using artificial intelligence to bifurcate between an enemy vessel and a friendly vessel between a non-combatant and a combatant. And people are still making the decisions and setting the mission intent. It's just government policy that's setting, okay, when are you authorized to engage versus not? Artificial intelligence actually just gives the military the opportunity to one operate at a greater scale and then operate more efficiently. These aren't robots actually just making decisions on when to go to war or not. Got it. So it says, hey, this is a bad guy. Hey, our recommendation is to, you know, neutralize it and then a human has to say, okay, neutralize it. But if you're up against an adversary who says, hey, no, we built this thing. Anybody comes in to the blockade in Taiwan, which, you know, we think is, you know, a pretty significant non-zero probability in our lifetime. If you're up against somebody who says, I'm just going to have these ships kill anything that's not our ship. Period full stop. Then we lose, don't we? No, because the technology is, all you're doing is putting policy thresholds and approval thresholds into the technology. There's a real world scenario where doomsday scenario, we go to World War Three, the Taiwan straight is a complete conflict. Exactly what you said. Our commanders are going to make that same judgment, right? They're going to be like, hey, if any of it, there's no fishing boats out here right now. Yeah. There's no cruise ships coming to the Taiwan straight. No collateral damage. If you're not a friendly vessel, you're an enemy vessel, and that's that. Our technology is actually a navel that we're talking about earlier is like the autonomy, the artificial intelligence and everything else is there. And you're building the policies into the software based on government procedures and when those authorizations need to be in place, those authorizations will change based on the threat environment that we're in. Is the plan for you to sell to our allies? And what are the rules there? Because it sounds like we need as many ships for our Navy as we can get. But if you can get up to capacity, then hey, the French, the Germans and the English have essentially just stop making ships, right? And they have very deprecated militaries. My understanding is the only people who are really doing a great job at this are the folks in South Korea, which I believe are building but one ship for us. So maybe you could talk about the other top countries in the world, democracies and our allies and what their capability is and then your ability to help arm them and sell to them. I mean, very, very focused on our allies and partners. If you talk to the Department of War, if you talk to the United States Navy, they actually want our allies and partners to have these capabilities as well. This is, this is going to be a combined effort, right? We mentioned earlier that China has 57% of the world's shipbuilding capacity. That's not limited to just that one industry. We can go industry by industry and talk about their manufacturing might and their manufacturing dominance. So you really do need a combined effort. You need our allies and partners to have this technology. We're talking to our allies in Asia, obviously in Europe and in the Middle East right now about getting not only our products there, but also how do we stand up, you know, domestic production in those countries? How do we give them the sovereign capability? How do we have production lines overseas so that they're already forward deployed if we get into a conflict in the first point? Pretty amazing stuff. And you have an announcement today, I understand. Now that we're going to share with the all-in audience for the first time. That's right. So we've been working on Port Alpha for a long time now. So Port Alpha, just for the listeners, is our shipyard of the future. This is going to bring American shipbuilding back to a place that we haven't seen since World War II. To be clear, we're already operating a shipyard. We have a shipyard in Franklin, Louisiana. That's where we're building Marauder. We're ramping that up to 20 Marauder. We can bring that up to 50 Marauders per year every single year. And that is a hundred acre shipyard. What we're doing at Port Alpha is 10,000,000. We're looking at a shipyard that is well over a thousand acres. We've been doing this search for over a year now on what is the ideal location for this shipyard. Where are we going to find the right partner, the right land, the right workforce, the right community to be a part of. And we're proud to announce that we found that in Brownsville, Texas. So we're heading for it in Austin. We're going to be basing Port Alpha in Brownsville. We're going to start on a 800 acre plot of land, which in and of itself, 800 acres is now the largest shipyard in the United States. Amazing. Just to give you a sense of scale, we have the opportunity over time to scale that to 4,000 acres. We're going to invest billions of dollars into this project. We're going to create 10,000 jobs over the next 10 years. And we're going to bring shipbuilding in this country back again to a place that we haven't seen since World War II. And we're just grateful for the partnership from the state, from Governor Abbott, from Cameron County, and then the city and the port of Brownsville for making this happen. I mean, this is one of the great things, Vib, about being based in Texas. They let us build things in Texas. Yeah. As a recent resident here, it's pretty amazing to live in a state where the state's like, what do you want to build? How can we help as opposed to, hey, you know, F off like they told Elon in California and he got the message received reply to that lunatic. So maybe you could talk a little bit about operating Vib and Texas and the crazy support you get from Abbott and everybody. One of the questions that we used to get like back in the day was, you guys are a maritime company, business of Water and Austin. What are you guys doing that? And I would say like, you know, Austin has this like medical kind of nexus of both digital and physical labor forces. Like you can find software talent, you can find AI talent, you can find designers, but you can also tap into, you know, the industrial base from San Antonio from the oil and gas industry in Houston. And when you marry those two together, like you can actually start to co-design these things across the entire stack, right? I mentioned earlier, like typically ship design and ship bill is totally independent. But with Port Alfa, we get the luxury of like greenfield designing what the manufacturing plant for ships should look like. And so you can design that you can optimize the design as ship for the yard and the design of the yard for the ship. And it's very similar to kind of like, you know, how companies today like do hardware software co-design on ships, right? You design a compiler and they stick together to optimize both for the other. And we have the luxury of being able to do that for ships here. And I can't think of a better place to do it than Texas. Well, and Starbase is right down the block. SpaceX, obviously, anyone's made that work. And I I think it's like a four, maybe four or five. six hour drive down to the coast. Yeah. So you guys can either zip there on a PJ or you can just drive. So it's pretty straightforward. It's pretty straightforward. It's easy for logistics. What what SpaceX has done in Brown'sville is incredible. I think what Brown'sville has done for SpaceX and helping them build out build the community down there. We were very impressed, very, very excited to be basing Port Alpha there. And look at the end of the day, it's the people that are going to make this work. It's it's the labor force, the workforce we've mentioned it earlier. And we can talk about, you know, why the American shipbuilding industry has declined so much. But it's the supply chain and the workforce that has suffered the most. And so like one of the things we focus on is really, how do we rebuild that workforce? How do we upskill existing talent to advance manufacturing? How do we take somebody that's building a car at Ford and get them building ships very, very efficiently, very quickly? Right? And that'll actually all starts with the design. If you design a ship from the ground up from a first principles approach to be more simplistic, to be designed and manufactured at scale, then you can put in the training, the work instruction to processes and everything else where, hey, let's go make this much faster. Let's train, let's build the workforce. And then let's be honest, like you have to make it cool for young people to go work in a shipyard again. You have to pay them good wages. Like every one of our employees, every welder, every pipe fitter, they have good wages, the same benefits as our Silicon Valley software engineers. They have equity in our company. They're fired up. Like I mentioned our shipyard in Louisiana. Like people are fired up down there. And it's not just the workforce, it's the community. Like some of the, some of the stories I hear when I'm down there, like so encouraging. People are like, I'm wearing my hat in the grocery store and people are coming up to me saying, you guys are kicking butt, keep building ships because nobody else in the country is doing what we're doing. And these are great salaries. People are getting paid significant amounts of money, obviously, to work in manufacturing at your company, down at Starbucks. And now you have these two incredible companies. I don't know if there's any other ones in Brownsville, but this is a small community, there's only like 200,000 people down there. This is going to be an incredible boom town. Oh, it's going to be incredible. And I mentioned earlier, like the cost of building ships in the United States and the United States just isn't competitive in the commercial market. And again, we can go through the specifics and what happened over time, five to six times the cost of building a ship in China. We think just by investing in product and processes and new shipyards, we can cut the cost of a ship in the United States in half. So if you have a ship that costs 300 million dollars, we can get that under 150 million. And that's not by simply just paying people less. We're paying people more, but we're investing in our product. We're investing in the process. We're designing the product to be built that way in the first place. So we're making the investments that are needed for long term sustainability and to rebuild the workforce. All right. If people want to come work with you, Vib, how can they apply their career page? And what are you looking for? What talent do you need to come do this incredibly patriotic duty and go work at Serrano? Yeah, I mean, Serrano.com. We have a career space. You can reach out on Twitter, LinkedIn, whatever you want. We're hiring pretty aggressively right now. I would say that the biggest thing we look for, generally speaking, is especially in 2026 when CAD-GBT and Claw are getting so much better every year. It's pretty important right now to be fairly neoplastic, be ready to adapt for what the future looks like. Computing is changing. There's going to be agents that can help you on the manufacturing floor too, to assemble faster if you have an issue. There's all these digital systems that are kind of changing the paradigm here. I mean, when we first got to Gulfraft in Dunno, Louisiana, a lot of the processes were pretty much pen and paper, right? And that's pretty common across most shipyards. So like kind of bringing that into the 21st century really quickly, I mean, it's just going to require people to be thoughtful, adapt to the future and really be passionate and excited and about kind of building the future. Yeah, go to the website, S-A-R-O-N-I-C dot com. Join the mission. It's 300 jobs listed on the website. There's something there for everybody. And listen, just as a fellow Greek, you know, we were obviously the cradle of innovation and or science math technology art and everything happened, but we were also the great warriors and we patrolled the sea. Obviously, Greece has a lot of coastlines. So you're doing a Greek brothers and sisters and ancestors. Because a lot of Greek has a lot of coastline and they're actually big in the shipping industry. So now I hear more often than not now. Oh, it's good to see a Greek in building ships. You know what? I can sleep now at night. I was very worried about the straighter for moves. I was worried about the Pacific theater and South China. See, do you know, now that I know that my Greek brother is on top of this, my head's going to hit the pillow. I'm like a baby. I'm just like a baby tonight. I know you got us covered. Thanks so much, guys. And sincerely, on behalf of all Americans, like, thank you for doing this work. You know, this is something where we really need technologists and entrepreneurs to really help us innovate, because we're falling behind. And we're the good guys in this. We're the ones who are spreading democracy and freedom and protecting that. The only thing in the world that is entwending in the right direction, man, if you look at life spans, if you look at, you know, infant mortality, if you look at people standard of living, everything is trending in the world in the right direction, except the spread of democracy, which has been on the decline in our lifetime. Let that sink in, folks, more people living under authoritarians than democracies. It's a modest amount, but you've seen the statistics. I'm sure of Ribbon and Dino. And we need to have a great military. We need to have this advanced technology. If we're going to maintain the number of people living under a democracy of in freedom and hopefully increase it. A lot of bad guys out there. And, you know, just thank you so much for doing this work. That's right. Well, thank you for having us. And I will end on a positive note where, like, we're seeing that starting to turn around in a really big way. It's not just seronic. You mentioned Androle. There's SpaceX and Palantir before that. And now there's just a big wave, a big push into defense tech because people realize the importance and the magnitude of the moment that we are living in right now. I tell our team, I'm like, this is our generation's version of the space race. Yeah. Make no mistake about it. And we cannot lose. So that's how hard we're working at seronic. That's how we're working with a sense of urgency. And there's a lot of other companies into the coming into the space that are working with that same sense of urgency. So I'm saying, I am very optimistic. I know this country can do it. When we put our minds and we get a collective effort behind something, nobody can beat us. Nobody can. Yeah. Nobody can beat us. And listen, if you were thinking of going, listen, there's no, no dig to anybody. But if you're thinking about going and optimizing an ad network at some big tech company, like incredibly boring. And it's incredibly meaningful. You'll get 20, 30 years into your career. And you say, what did I do? Go work at seronic. You get a couple of years into your career. And you say, I'm doing important work. That's right. That's right. Every person that walks to the door every single day is quite literally changing the world. And we remind them of that. And they know it. Yeah. All right, Viv. Do you know, thank you so much for coming on. And we'll see you next time on the All in Interview. ♪ Oh, you ♪