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US military uses genetic engineering to develop “living tripwires” for submarines
The US Department of Defense (DoD) is investing $45 million dollars in a tri-service effort that focuses on synthetic biology (SynBio) for use in military technologies. This interdisciplinary scientific field primarily involves altering the genetic makeup of organisms to achieve specific behavior, and the military wants in on its potential applications. By uniting SynBio experts within the US Air Force, Army, and Navy, DoD officials hope to develop serious capabilities for use throughout the military’s branches.
The long form name of this project is the Applied Research for the Advancement of Science and Technology Priorities Program on Synthetic Biology for Military Environments, and the mission is obvious from its title alone. While still in the early research stages, engineering organisms could provide numerous tools with direct defense applications.
For example, organisms engineered to change their colors based on their environment could be used as living camouflage, and medications infused with protective microbes could help service member survival in tough conditions. However, it’s perhaps the US Naval Research Laboratory (NRL) in Washington DC that may hold the relevant interest in developing SynBio capabilities due to the marine environment potentials it holds.
Above the water, engineered self-repairing organisms could spell out self-healing paint for ships and aircraft carriers, cutting billions from the US Navy’s fleet maintenance costs. Even more important for defense needs, though, are the modified organisms that could help the branch’s deep water operations, i.e., submarines. By modifying the environmental response of naturally present organisms, naval defense could have a new type of radar at their disposal.
An abundant seawater-native bacteria with “clinging” properties called Marinobacter is a prime candidate for the DoD’s purposes. Specifically, the organism could be genetically engineered to react to certain types of molecules that aren’t naturally occurring in the ocean, such as diesel fuel or human DNA, and then spread into targeted environments for monitoring. This reaction could perhaps be the release of an electron, thus creating an electrical signal which nearby drones could pick up and transmit where necessary. The ability to detect non-friendly submarines is the key capability the researchers are aiming to achieve, the bacteria acting as “living tripwires.”
The field of synthetic biology is not new in the civilian world. In fact, consumer products currently exist based on it, such as bio fuels, soaps, cleaners, food additives, and a variety of industrial and manufacturing products. One of the challenges of bringing this type of technology to the field for military use is making the modified organisms tough enough to endure the environments needed.
“If you want to move a biological bio-based sensor to the field you try to ruggedize those organisms. You try to protect them…[and]…increase their longevity in these harsh environments,” explained Dimitra Stratis-Cullum, the lead of U.S. Army Research Laboratory biomaterials team, in a recent forum hosted by the Johns Hopkins University Applied Physics Laboratory.
The current genetic research being conducted in SynBio has demonstrated that the genes of E. coli bacteria can be manipulated to express properties relevant to the larger goal of underwater sensing. However, the significant differences between the E. Coli and the types of organisms natural to deep water environments, such as Marinobacter, can be compared to the differences between mice and humans.
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The initial point really is to either prove that the desired outcome is possible or collect data to assist in that effort. In other words, there’s still a lot of work to be done, but making the effort a priority, such as what the Navy’s done with its “Task Force Ocean” mission aimed at strengthening partnerships within academia and the private sector regarding Navy-relevant ocean science, is a focused step in the right direction for the military to achieve its goals in SynBio.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
