Despatches 6 min read 15 June 2026 DAILY DISPATCH · ISSUE 166

U.S.-Europe F-35 Arms Race Kicks Off as AI Export Controls Intensify

Today's defense briefing connects the dots between a U.S. Navy missile contract, Europe's F-35 arms race, and escalating AI export controls.

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The result? Today’s defense briefing is dominated by a tale of two races: the escalating F-35 arms race between the U.S. and Europe, and the intensifying battle over advanced AI export controls. Let’s dive in.

The F-35 Arms Race Heats Up

Saronic Technologies’ selection for the U.S. Navy’s MUSV marketplace is more than just a $629 million contract; it’s an acceleration of the F-35 arms race, with Europe upping its game. Today marks the fifth country to select Kongsberg’s Joint Strike Missiles (JSM) for its F-35 jets, following Germany’s latest order worth NOK 3.5 billion. This trend has been building over the past 30 days, with F-35-related stories appearing nine times and JSM four times.

Kongsberg reported strong Q1 2026 results, with a 26% revenue growth and an order backlog standing at NOK 152 billion. This is good news for Norway-based Kongsberg, but it’s also a sign that Europe’s F-35 fleets are increasingly well-armed. With France, Germany, Italy, and the UK now equipped with JSM capabilities, the European F-35 fleet poses an increasingly potent threat to Russia, particularly as tensions in Eastern Europe simmer.

AI Export Controls: A New Battlefront

Anthropic’s suspension of its top AI models following a U.S. export-control order highlights another escalating race – this time over advanced artificial intelligence. With AI-related stories appearing 30 times in the last 30 days, today’s news is part of an ongoing trend.

The Anthropic move comes amidst negotiations between the Biden administration and tech companies over export controls on advanced AI models. This spat has been brewing for months, with the U.S. government eager to maintain its edge while tech companies chafe at restrictions on their global operations. Today’s development suggests that tensions will continue to simmer in this critical arena.

What Else Moved

Iran Nuclear Deal Nears Completion: The Trump administration is close to finalizing a memorandum of understanding to remove nuclear materials from Iran, potentially reshaping the balance of power in the Middle East. FISA Sunset Looms: Section 702 of FISA is set to lapse this Friday, raising uncertainty over global surveillance capabilities and warrantless foreign intelligence gathering.

Forward Look

As the U.S.-Europe F-35 arms race intensifies, keep an eye on procurement trends in Eastern Europe. Meanwhile, watch for further developments in the AI export control battle as negotiations between tech companies and the Biden administration continue to unfold.