US Tech Titan Targets Ships: Y Combinator Backs Anti-Ship Missile Startup

In a move that could ripple through global naval strategies, Y Combinator—the California-based tech incubator behind Airbnb, Dropbox and Flexport—is now backing Ares Industries, a startup aiming to revolutionize maritime warfare with a new line of anti-ship missiles.

This development marks a significant shift for Silicon Valley, traditionally known for software and tech innovations rather than weaponry. However, the industry has been pivoting rapidly with the success of other defense startups like Palantir and Anduril Industries. Ares Industries is bringing the disruptive spirit of the tech world into the defense sector, focusing on compact, cost-effective weaponry designed to challenge naval warfare conventions.

The centerpiece of Ares’ arsenal is a next-generation anti-ship missile, priced at a mere $50,000. This lightweight, backpack-sized missile can be deployed from small vessels or merchant ships, making it a versatile tool for both conventional navies and irregular maritime forces. A defense expert tells gCaptain this level of affordability and portability could be a game-changer in and around choke points, where smaller, agile forces might neutralize much larger naval assets.

“Ares is building a new class of anti-ship cruise missiles,” said cofounders Alex Tseng and
Devan Plantamura in a recent statement. “We are going to deliver the capabilities that the US Department of Defense wants in a form factor that’s 10x smaller and 10x cheaper.”

With escalating geopolitical tensions—particularly in maritime hotspots like the South China Sea and the Strait of Hormuz—Ares’ entry into the arms market is likely to draw significant attention from naval strategists and defense contractors. The low cost and high potential impact of these missiles could shift the balance of power in contested waters, giving smaller nations or non-state actors the means to challenge major naval powers, especially China.

“Chinese shipbuilding capability is far superior to the United states, and we can’t make enough anti-ship missiles to counter,” said the founders. “Huge missiles aren’t needed to take out the smaller corvettes and frigates that make up the People’s Liberation Army Navy. And $3M missiles make even less sense to take out swarms of $200k small, unmanned surface vessels.”

The critical question for the maritime industry is whether these weapons will eventually be used against commercial ships, which currently have no means of defending themselves. This raises another question: will startups emerge to sell defensive weapons systems that ship owners can purchase?

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