JPMorgan Chase Invests 5 Billion Dollars in Defense Startups

JPMorgan Chase has invested 5 billion dollars in startups during the first year of its U.S. security and resiliency initiative, accelerating efforts to strengthen domestic defense production, advanced manufacturing, and critical supply chains. The bank announced the milestone Monday, October 19, 2026, reaching half of its initial 10 billion dollar investment target for the decade-long program.

JPMorgan Chase co-President Doug Petno told CNBC that the bank could exceed its original investment commitment as it identifies additional opportunities in industries supporting U.S. national security. The bank has already taken direct stakes in defense technology companies Hadrian and Castelion, although most investments under the initiative have not been publicly disclosed.

The initiative was launched by JPMorgan Chase CEO Jamie Dimon amid concerns about geopolitical instability, including the wars in Ukraine and the Middle East and trade disputes with China. These developments have threatened supplies of energy and essential components used by American industries and defense manufacturers.

Petno oversees the overall investment program, while Todd Combs, a former Berkshire Hathaway executive and former JPMorgan Chase board member, leads the group responsible for selecting startups. Combs reports directly to Dimon.

Petno praised Combs' early performance in identifying companies for the program.

"He's done a great job and put us in some really interesting companies," Petno said.

Petno said the initiative has identified businesses developing domestic capabilities in advanced manufacturing. The program also extends beyond defense and supply chains into frontier technologies, pharmaceuticals, and health technology.

"There's a lot of really interesting companies that have been working to solve some of these problems," Petno said.

He described the potential of early-stage manufacturing businesses to reduce dependence on overseas suppliers.

"These early venture-stage, advanced manufacturing companies have found ways to build these capabilities in the U.S." Petno said.

One major investment involves Hadrian, which develops automated factories producing components for the aerospace, defense, and maritime industries. In August, JPMorgan Chase helped lead a 1.4 billion dollar funding round for the company.

According to Hadrian's founder, a California factory operated by the company has 10 robots for every human employee, illustrating its emphasis on automated production.

JPMorgan Chase also participated in a 1 billion dollar funding round for Castelion in August. Founded in late 2022 by former SpaceX engineers, the startup is developing Blackbeard, a relatively low-cost hypersonic missile.

Combs outlined the bank's investment philosophy in a statement released Monday, emphasizing long-term partnerships with companies operating in strategically important industries.

"Our approach is to find generational companies and partner with them for the long term," Combs said.

He also linked the first-year investment total to the number of businesses addressing industrial and supply chain vulnerabilities.

"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," Combs said.

The direct investments represent a shift for JPMorgan Chase, whose traditional business centers on lending and financial advisory services. Before launching the initiative, the bank had moved away from startup equity investments, which can expose investors to the risks of unproven technologies. JPMorgan spun off its private equity business, One Equity Partners, more than a decade ago.

Alongside its startup investments, the bank has financed and facilitated more than 230 billion dollars in transactions during the initiative's first year, according to JPMorgan Chase. That activity forms part of a separate 1.5 trillion dollar target covering industries considered important to American national interests over 10 years.

Jay Horine, a former co-head of investment banking, leads the financing component. JPMorgan Chase has assembled approximately three dozen bankers for the initiative, supported by hundreds of additional employees across the firm, and has expanded the program into Europe and Canada.

According to Petno, the bank's teams are mapping supply and distribution networks for products ranging from submarines and missiles to aircraft. The work is intended to identify suppliers that may lack the funding or production capacity to meet increasing demand.

Petno also said JPMorgan Chase maintains regular communication with the U.S. Department of Defense and the U.S. Department of Commerce about government requirements.