Pentagon partners with CIA’s In-Q-Tel for ‘technology scouting’

WASHINGTON — After years of informal cooperation, today the Pentagon’s research and engineering arm announced a formal agreement with the CIA-backed investment firm, In-Q-Tel (IQT), to aid in systematic “technology scouting” for military use.

“Over the next 12 months, our benchmark for success is simple and unambiguous: moving validated commercial prototypes out of the lab and into active operational field evaluations with our combatant commands,” said Michael Dodd, Assistant Secretary for Critical Technologies, in the Pentagon release. Dodd’s organization leads the Pentagon’s side of the partnership, which will focus on the six Critical Technology Areas set by Pentagon CTO Emil Michael 11 months ago: artificial intelligence, biomanufacturing, directed energy (lasers, microwaves, et al), hypersonics, quantum and information technologies, and “contested logistics.”

Although IQT is an investment organization — technically a 501(c)3 non-profit founded by but independent of the CIA — money isn’t the main contribution it’s bringing to this partnership. Indeed, over the last five years of financial filings (2021-2025), IQT current total assets have hovered around $1 billion, less than 1 percent of what the Pentagon spends on Research, Development, Test, & Evaluation (RDTE) in a single year.

But IQT’s early investments often have an outsize impact, helping jumpstart firms as prominent as Anduril and Palantir. Those investments are not only a cash infusion but a vote of confidence that encourages other investors to follow, with IQT boasting that each dollar it invests leads to $40 from other sources.

IQT’s primary mission has been fostering companies to serve the tech needs of the Intelligence Community, with the military as a secondary emphasis. But the new partnership has IQT performing “technology scouting and technical due diligence” for the Defense Department and serving as a feeder into Pentagon development and production pipelines.

“The integration leverages In-Q-Tel’s proven venture capital methodology to vet early-stage commercial solutions that align directly with the Department’s urgent mission requirements,” the announcement says. “By combining CT’s strategic transition pathways with IQT’s deep-tech scouting infrastructure, the partnership aims to significantly de-risk the integration of commercial hardware and software for national security applications, signaling to the commercial tech sector that the Department of War is open for business.”

Said Dodd: “Technological superiority will not be determined by who invents a capability first, but by who delivers it to the warfighter fastest. The Department is fundamentally shifting its posture: we are moving from acting solely as a long-cycle technology developer to operating as an agile, credible, and rapid customer for America’s most innovative non-traditional performers.”

In-Q-Tel was founded in 1999 on the urging of then-CIA director George Tenet. Its name is a reference to the fictional Q who supplies James Bond with high-tech gadgets.