Joby, Dirac & Allen Control: The Future of Air, AI & Defense Tech
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This episode of Sorcery features three compelling segments from the Reindustrialize conference in Detroit, showcasing America's manufacturing revival. The first segment features Eric Allison from Joby Aviation discussing their revolutionary electric vertical takeoff and landing aircraft, recent facility expansions in California and Ohio, and their partnership with companies like Uber and Delta for seamless air taxi services. (01:24)
The second segment highlights Philip Ehrenstein from Dirac, who is building automated work instruction platforms to modernize American manufacturing by replacing outdated paper-based assembly instructions with AI-powered 3D animated guides. (27:08)
Finally, Steve from Allen Control Systems discusses their AI-powered machine gun systems designed to counter drone threats, representing the evolution of defense technology in response to modern warfare challenges. (42:28)
• **Main Theme**: The resurgence of American manufacturing through innovative technologies, vertical integration strategies, and the critical need to rebuild industrial capabilities to maintain competitive advantage.Speakers
Eric Allison - Joby Aviation
Eric Allison leads manufacturing and operations at Joby Aviation, having previously run Uber's Elevate team before Joby acquired it. He brings extensive experience in transportation technology and has been instrumental in developing Joby's approach to seamless multimodal transportation, including partnerships with major companies like Uber and Delta for integrated air taxi services.
Philip Ehrenstein - Dirac
Philip Ehrenstein is the founder of Dirac, bringing a background in electrical engineering and robotics with experience at Northrop Grumman. He recognized the degradation of America's industrial base and founded Dirac to build automated work instruction platforms that modernize manufacturing processes and preserve critical tribal knowledge before experienced workers retire.
Steve - Allen Control Systems
Steve is the co-founder of Allen Control Systems, an American defense contractor specializing in AI-powered weapon systems for drone warfare. After selling his previous company to DoorDash, he pivoted to defense technology following Russia's invasion of Ukraine, leading a team of 52 people focused on creating precision kinetic defeat solutions for modern battlefield threats.
Key Takeaways
Vertical Integration as a Competitive Advantage
All three companies demonstrate the power of vertical integration in rebuilding American manufacturing capabilities. Eric Allison explained how Joby discovered early that "the components, the parts to actually make this aircraft just weren't available. You couldn't buy them from anyone." (02:47) This led them to develop in-house manufacturing capabilities from design to testing. Philip Ehrenstein echoed this sentiment, describing Dirac as building "full stack" solutions, while Steve from Allen Control Systems called his company "the full stack vertically integrated gun turret company." This approach allows companies to control quality, reduce dependencies, and innovate faster by keeping critical capabilities in-house rather than relying on fragmented supply chains.
Preserving and Digitizing Tribal Knowledge
Manufacturing faces a critical knowledge transfer crisis as experienced workers retire. Philip Ehrenstein highlighted this urgent problem: "A lot of folks who actually knew how to do things correctly and took pride in that work are retiring. The net new talent that comes in that's addicted to TikTok doesn't care." (34:00) Companies must systematically capture institutional knowledge before it disappears. Dirac's BuildOS platform exemplifies this by converting tribal knowledge into structured, interactive 3D guides that can train new workers effectively. This isn't just about documentation—it's about creating systems that make complex manufacturing processes learnable and scalable for the next generation workforce.
Capital-Intensive Innovation Requires Strategic Partnerships
Building revolutionary physical products demands substantial capital and strategic partnerships with established players. Joby Aviation's journey illustrates this perfectly—they raised over $400 million in their Series C led by Toyota, then went public via SPAC to access additional capital markets. (06:27) Eric Allison noted that "this is a very capital intensive business" and emphasized the importance of partnerships with companies like Uber and Delta for customer access. The lesson for entrepreneurs is that breakthrough physical products often require patient capital and strategic alliances with incumbents who can provide both funding and market access.
Data-Driven Manufacturing Creates Competitive Moats
Modern manufacturing companies are becoming data companies at their core. Eric Allison described how Joby's electric aircraft are "massive data machines" that generate "gigabytes and gigabytes of data on every flight." (18:09) This data flows automatically into cloud systems where it gets processed for engineering analysis. Philip Ehrenstein emphasized that effective AI in manufacturing requires structured data: "You have to aggregate all that context and then layer in LLMs and AI in order to drive value around all of that tribal knowledge." (39:09) Companies that systematically collect and analyze operational data will have significant advantages in optimizing performance and developing better products.
Addressing National Security Through Industrial Capability
The convergence of manufacturing renaissance and national security concerns creates both urgency and opportunity. Steve from Allen Control Systems pivoted to defense technology after witnessing how "the countermeasures we were investing in as a country, I don't think those are gonna be long term sustainable" for emerging drone threats. (43:35) This represents a broader trend where American companies are recognizing that domestic manufacturing capability is a national security imperative. The most successful companies will be those that can serve both commercial markets and national defense needs, creating more resilient and strategically important businesses.
Statistics & Facts
- Toyota Motor Corporation invested $500 million in Joby Aviation as announced during their Series C funding round. (06:27) This represents one of the largest automotive industry investments in electric aviation technology, signaling major OEM commitment to urban air mobility.
- The United States has 2.5 million open manufacturing jobs according to Philip Ehrenstein's comments about Detroit's manufacturing capacity. (24:48) This highlights the critical labor shortage facing American manufacturing despite the push for reindustrialization.
- Allen Control Systems has raised $43 million in funding and employs 52 people, with the founder noting he's "never not been raising" capital over eight years. (49:00) This illustrates the capital-intensive nature of defense technology development and the continuous fundraising requirements for hardware companies.
