JPMorgan Chase invests $5 billion in defense startups in first year of security initiative

Bank may expand program beyond initial $10 billion target as it builds stakes in robot factories and hypersonic missiles

By LineZotpaper

Published19 October 2026

Read Time2 min

Sources4 outlets

JPMorgan Chase announced it has invested $5 billion in startup companies during the first year of its U.S. security and resiliency initiative, a faster pace than expected. The bank, which initially committed $10 billion over a decade, may expand the program further. Co-president Doug Petno said the group, led by former Berkshire Hathaway executive Todd Combs, has "hit the ground running" and placed the bank in "some really interesting companies."

JPMorgan Chase has invested $5 billion in startup companies in the first year of its U.S. security and resiliency initiative, a faster pace than anticipated. The bank had previously committed $10 billion over a decade and may expand the program beyond that target, according to Doug Petno, co-president of JPMorgan.

The initiative, created by CEO Jamie Dimon a year ago, aims to strengthen supply chains and national security in response to threats from wars in Ukraine and the Middle East, as well as trade disputes with China. The scope includes defense, manufacturing, frontier technologies, and pharmaceuticals.

Most investments remain undisclosed, but two known stakes illustrate the mission. JPMorgan helped lead a $1.4 billion funding round in Hadrian, a startup that operates automated factories using robotics to produce parts for defense and aerospace. It also participated in a $1 billion round for Castelion, which develops a low-cost hypersonic missile called Blackbeard. Castelion was founded by former SpaceX engineers.

Todd Combs, who leads the bank's investment team, said in a statement: "Our approach is to find generational companies and partner with them for the long term. Putting more than $5 billion to work in our first year shows how many exceptional businesses are building in industries that strengthen critical supply chains."

The initiative marks a departure from JPMorgan's typical role as a lender and advisor. The bank had previously moved away from direct startup stakes, which carry higher risk. JPMorgan also continues its traditional lending and advisory work, having financed and facilitated over $230 billion for industries supporting American national interests, with a goal of $1.5 trillion over ten years. That effort is led by Jay Horine.

Petno noted that the bank is in regular communication with the U.S. Department of Defense and Department of Commerce about government needs. A team of about three dozen bankers works on the project, with hundreds more across the firm, and the initiative has expanded to Europe and Canada.

Analysis

Why This Matters

JPMorgan's direct startup investments represent a significant shift from its traditional banking role, potentially signalling greater private sector involvement in national security and supply chain resilience.
The focus on defense and manufacturing startups could accelerate development of critical technologies in the United States, reducing reliance on overseas suppliers.
If successful, this model may be replicated by other large financial institutions, reshaping how defense supply chains are financed.

Background

JPMorgan announced its security and resiliency initiative a year ago, pledging $10 billion over ten years for direct startup investments and $1.5 trillion in traditional lending and advisory services. The initiative is led by Doug Petno, who reports to CEO Jamie Dimon, and the startup investment team is headed by Todd Combs, a former Berkshire Hathaway executive. The bank has been in talks with the U.S. Department of Defense and Department of Commerce to align its investments with government priorities.

Key Perspectives

JPMorgan leadership: The bank sees this as both a strategic imperative to address national security vulnerabilities and an investment opportunity in emerging technologies. Petno described the pace of investment as evidence of "plentiful opportunities" in companies building domestic manufacturing and defense capabilities. Government and defense officials: The departments of Defense and Commerce have been coordinating with JPMorgan, indicating official support for increased private capital in critical supply chains and defense production. Market analysts and skeptics: The move is a departure from JPMorgan's risk-averse stance—it spun off its private equity arm a decade ago. Direct stakes in unproven startups carry higher risk, and bank critics may question whether such investments align with JPMorgan's fiduciary duties or whether they represent an overreach into industries traditionally served by venture capital.

What to Watch

Any announcement of program expansion beyond the initial $10 billion target.
Performance and subsequent funding rounds for portfolio companies like Hadrian and Castelion.
Further disclosures of JPMorgan's undisclosed startup investments.
Whether other major banks launch similar security-focused investment initiatives.

Sources

Checked

12 claims in this story checked against 1 source: 10 supported.

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Partly supportedHeadline: JPMorgan invested $5 billion in 'defense startups' in the first year of its security initiative.Finance: “JPMorgan Chase has made $5 billion in startup investments in the first year of its U.S. security and resiliency initiative , the company said Monday”
SupportedThe $5 billion was invested in startups during the first year of the initiative, and the bank announced it.Finance: “JPMorgan Chase has made $5 billion in startup investments in the first year of its U.S. security and resiliency initiative , the company said Monday, a faster-than-expected pace”
SupportedThe bank may expand the program beyond its initial $10 billion target.Finance: “The bank, which last year said it would deploy $10 billion into startups over a decade, may expand the program beyond that initial dollar amount”
SupportedCo-president Doug Petno said Todd Combs's group has 'hit the ground running'.Finance: “has "hit the ground running," Petno said.”
SupportedPetno said the group placed the bank in 'some really interesting companies'.Finance: “"He's done a great job and put us in some really interesting companies," he added.”
SupportedThe initiative was created by CEO Jamie Dimon a year ago in response to wars in Ukraine and the Middle East and trade disputes with China.Finance: “Wars in Ukraine and the Middle East, as well as trade disputes with China, have threatened the flow of energy and key components needed for U.S. industries and defense, which spurred JPMorgan CEO Jamie Dimon into creating the initiative a year ago.”
SupportedJPMorgan helped lead a $1.4 billion funding round in Hadrian, a robotics startup making defense and aerospace parts in automated factories.Finance: “In August, the bank helped lead a $1.4 billion funding round in Hadrian, which builds automated factories that make parts for the defense, aerospace and maritime sectors.”
SupportedJPMorgan participated in a $1 billion round for Castelion, which develops the low-cost hypersonic missile Blackbeard, founded by former SpaceX engineers.Finance: “That month, JPMorgan was also involved in a $1 billion funding round for Castelion, whose flagship product is a relatively low-cost hypersonic missile called Blackbeard. Castelion was founded in late 2022 by a group of former SpaceX engineers.”
SupportedTodd Combs said in a statement: 'Our approach is to find generational companies and partner with them for the long term.'Finance: “"Our approach is to find generational companies and partner with them for the long term," Combs said in a statement Monday.”
Partly supportedThe bank has financed and facilitated over $230 billion for industries supporting American national interests, with a goal of $1.5 trillion over ten years.Finance: “JPMorgan has also financed and facilitated more than $230 billion for industries that support American national interests, according to the bank.”
SupportedJPMorgan's investment team is led by Todd Combs, a former Berkshire Hathaway executive.Finance: “Todd Combs, the former Berkshire Hathaway executive who leads the JPMorgan group in charge of making startup investments”
SupportedThe bank is in regular communication with the U.S. Department of Defense and Department of Commerce about government needs, according to Petno.Finance: “JPMorgan is also in regular communication with the U.S. Department of Defense and Department of Commerce about the government's needs, he said.”