DIU

The Defense Innovation Unit was established in 2015 (originally as DIUx) to bridge the gap between Silicon Valley-style commercial innovation and Department of Defense needs. DIU is headquartered in Mountain View, California, with offices in Austin, Boston, and the Pentagon.

DIU uses a Commercial Solutions Opening (CSO) process — a type of Other Transaction Authority — to rapidly prototype and field commercial technologies. The typical timeline from solicitation to contract award is 60-90 days, compared to 12-18 months for traditional DoD procurement.

DIU focuses on areas where commercial technology is ahead of government solutions: artificial intelligence, autonomy, cyber, energy, human systems, and space. Companies do not need to be traditional defense contractors to work with DIU — in fact, DIU specifically seeks "non-traditional" companies that have never done business with the DoD.

A successful DIU prototype can lead to a follow-on production contract with a military service branch, providing a scalable pathway into the defense market. DIU has facilitated billions of dollars in follow-on production contracts from successful prototypes.