So Google is back in the defense game, but this time through a spinoff that just hit unicorn status. Interesting pivot considering they famously walked away from Pentagon contracts years ago.

Back in 2022, Alphabet quietly spun off a company called Aalyria that had been quietly developing satellite and communications tech for over a decade. Now we're in 2026 and the company just announced it raised $100 million in new funding, which valued the entire operation at $1.3 billion. That's unicorn territory, though it's worth asking what makes that valuation actually real.

Here's what Aalyria actually does: They've built something called Tightbeam - laser-based communications that can connect satellites, fighter jets, drones, and ground systems without relying on radio frequencies that can be jammed. Think of it as solving the military's electronic warfare problem. The Navy already gave them $7 million to develop this capability back in 2023. They also have Spacetime, which is basically orchestration software that lets different communications networks talk to each other.

The CEO says they've got massive backlog and need resources to turn it into actual products. Fair enough - that's how you go from promising tech to revenue. With the fresh capital from Battery Ventures, J2 Ventures, and DYNE Maritime, they're positioned to do exactly that.

Now, is this unicorn real? The $1.3 billion valuation came from actual institutional investors putting real money in - not some inflated Series C round on paper. They've got Pentagon contracts, they've got working technology, and they've got a clear path to revenue. That's more real than a lot of unicorns floating around.

What's wild is that Alphabet still owns a minority stake in this. So Google gets to stay out of the public eye on defense work while still benefiting from a company that's clearly solving problems the military actually needs solved. If Aalyria ever goes public, it'll be a defense play, a space play, and a telecom play all rolled into one.