CAEROS Program
U.S. Defense Campus in Hawthorne California, supporting the
U.S. Golden Dome Project
Executive Summary
Through its strategic partnership, Complete Financial Solutions, Inc. (CFSU) and Complete Aerospace Solutions, Inc. (CAEROS, its subsidiary) have proposed a 5 MW AI data center secured and hardened facility (within a 20 MW build plan) at 15000 Aviation Blvd (Hawthorne/Torrance) dedicated to DIU portfolio firms via the allocation of AI Compute Tokens (AIU Tokenized AI Compute / "AIU") reserving PFLOP-hours of AI computing, with priority scheduling and published SLAs.
The AIU Tokenized AI Compute model provides predictable pricing, sovereign secured AI compute capacity and a clear compliance wrapper (ITAR/EAR, CMMC L2 roadmap, IL-4/5 enclave plan) for DIU, Department of Defense (DoD) / Department of War (DoW) portfolio contractor companies. Tier-one infrastructure partners support project finance.
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Problem–Solution
Defense innovators supporting The Golden Dome multi-layer missile defense system project, for the United States, face queueing/rationing on commercial clouds, export/ATO hurdles, and cost/schedule risk. Our AIU approach delivers reserved PFLOP-hours backed by on-prem MEP, with firm SLAs and a 30/60/90 plan that reaches first workloads ≤60 days and the monthly delivery floor ≤90 days.
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Compute class:
H100/H200-class (or equivalent) GPU systems, staged in tranches aligned to the 5 MW→20 MW ramp.
Strategic Location and Infrastructure Advantages
Hawthorne California Facility Specifications
The former FAA building at 15000 Aviation Blvd. Hawthorne, CA 90261 provides optimal strategic advantages for defense AI infrastructure:
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Existing Power Infrastructure
The facility currently has five megawatts of power already in place, significantly reducing deployment timelines and capital requirements for initial operations while providing immediate operational capability.
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Energy Supply & Microgrid
(Provisional — pending SK Memo). Power will be provided by an on-site fuel-cell special purpose vehicle (SPV) under a long-term power purchase agreement (PPA) with the compute operating company. The interconnection supports ride-through during transient events and a documented black-start sequence. The PPA will include a priority-supply covenant for the DIU reserved block, an availability guarantee ≥ 99.95% at the point of common coupling, curtailment/make-whole provisions, and explicit no-encumbrance language so DIU and DoD/DoW capacity is not constrained by third-party financing.
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Geographic Strategic Value
Located in the heart of Southern California's aerospace and defense corridor, the Hawthorne facility provides proximity to major defense contractors, aerospace manufacturers, and DoD's existing network of portfolio contractor companies.
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Regulatory Environment
California's established data center regulatory framework and existing utility partnerships provide streamlined pathways for rapid facility enhancement and operational deployment.
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Scalability Platform
The facility serves as the foundation for expansion to the full 20-megawatt capacity, providing growth pathways aligned with increasing demand for AI computing resources across the defense industrial base.
Existing Institutional Investment Partnership
The collaborative investment structure with premier institutional partners ensures world-class infrastructure development:
Carlyle Group
Brings experience in defense industry investments, government contracting expertise, and deep relationships across the military-industrial complex, ensuring that facility operations align with defense community requirements.
Goldman Sachs
Provides financial engineering expertise, institutional-grade risk management, and access to global capital markets for facility enhancement and expansion financing.
Copenhagen Infrastructure Partners
Delivers specialized expertise in energy infrastructure, sustainable power systems, and grid integration essential for reliable AI data center operations with appropriate environmental stewardship.
This institutional backing ensures that the facility meets the highest standards for security, reliability, and operational excellence while providing the financial stability necessary for long-term operational commitments to DIU and DoD/DoW portfolio companies.
Investment Opportunity and Strategic Timing
Explosive Market Growth and Policy Alignment
The AI data center market represents unprecedented growth opportunities that align perfectly with national security imperatives and recent policy developments. The White House's AI Action Plan accelerates AI innovation through new funding opportunities and standards surrounding procurement, providing the policy framework that supports our infrastructure approach. The Plan's focus on Innovation, Infrastructure, and International Diplomacy and Security directly aligns with our proposed solution for DIU portfolio companies.
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Market Expansion
AI data center market growing from $226B (2025) to $934B (2030), representing a compound annual growth rate exceeding 30% and creating massive opportunities for early-move advantage.
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Capital Investment Wave
$7T in AI-related CAPEX expected by 2030, demonstrating the scale of global investment in AI infrastructure and the strategic importance of securing domestic capabilities. Recent private sector commitments include Trump's announced $500 billion investment in AI infrastructure and Meta's $29 billion hybrid financing for AI data center expansion.
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Energy Demand Surge
Power demand increasing by 165% by 2030, highlighting the critical importance of energy-secure infrastructure and the competitive advantage of facilities with existing power infrastructure.
Federal Support: The bill provides significant federal funding, grants, and tax incentives for companies investing in U.S.-based AI infrastructure, creating favorable conditions for our proposed facility. The financing support incentives represent potential new opportunities for American data center projects.
Strategic Positioning: Early-mover advantage in creating a compute reserve standard positions CAEROS and DIU, DoD/DoW as defense industry leaders in establishing industry standards for Compute Allocation Credits.
Convergence with Defense Priorities
The timing aligns perfectly with broader defense and national security trends that CAEROS and CFSU is uniquely positioned to address:
Market Convergence
Increasing overlap between civilian and defense sectors driving demand for dual-use technologies creates optimal conditions for integrated AI infrastructure serving both communities.
Re-shoring Imperatives
Government initiatives promoting Buy American policies and defense supply chain localization create strong demand for domestic AI infrastructure alternatives to foreign-controlled cloud platforms.
Resilience Requirements
Growing market demand for infrastructure hardening, domestic manufacturing, and autonomous capabilities align with our integrated approach to mission-critical industries.
Infrastructure Investment Focus
Among power company and data center executives surveyed, 67% believe funding to be key to closing AI infrastructure gaps, demonstrating market recognition of the funding challenges our proposal addresses.
AIU Tokenized Credit System and Operational Framework
AIU Tokens Distribution and Economics
Our carefully designed credit system structure ensures sustainable operations while providing maximum value to DIU, DoD/DoW portfolio companies:
Definition: Contracted reserved capacity measured in PFLOP-hours (GPU-hour / PFLOP-hour conversion table in appendix).
Service Level Agreement targets:
  • Uptime 99.9982% (Tier III N+1 Resiliency); Tier IV N+2, which is 99.99999 is achievable but increases cost 40%.
  • Average queue time ceiling: 3 minutes.
  • Monthly delivery floor: ≥ 2,700,000 PFLOP-hrs./month at 5 MW; ≥ 10,800,000 PFLOP-hrs./month at 20 MW. (allows for a buffer from theoretical peak performance accounting for Power Usage Effectiveness and Utilization)
Priority: DIU, DoD/DoW cohort workloads receive priority scheduling within the reserved AI compute block.
Commercial terms: Fixed DIU rate; take-or-pay floor [75% suggested]; pre-set overage adder (under NDA); limited carry-forward.

Note: AIUs are contract-backed reservations and are not tokens or transferable instruments.
DIU, DoD/DoW Portfolio Company Advantage
DIU, Department of Defense (DoD) / Department of War (DoW) portfolio contractor companies receive unprecedented advantages through our credit-based infrastructure approach:
DIU receives a fixed, pre-negotiated rate for reserved capacity, documented in an NDA-protected rate schedule. Pricing is anchored on PFLOP hours delivered and structured as follows:
  • Base Block: 1000 PFLOP-hours/month at $2.50/PFLOP-hr. for the DIU-reserved block.
  • Take-or-Pay: Minimum monthly commitment of 90% of the reserved block (carry-forward of 10% for 2 months max).
  • Overage: Burst usage priced at $4.00/PFLOP-hr.] or 60% adder over base, subject to available capacity.
  • Service Credits: If the monthly delivery floor is not met, credits are applied per the SLA schedule.
  • Indexing: Annual indexation [CPI-U cap of 3% / fixed 2% / none].
  • Invoicing & Audit: Monthly invoicing with usage detail; right to audit metering and SLA reports.

Note: Public documents refer to "tier-one infrastructure partners engaged;" any third-party pricing references remain in the confidential annex.
Priority Allocation
During periods of high demand, DIU portfolio companies receive guaranteed access to computational resources through reserved credit allocations, ensuring that critical national security projects are never constrained by market dynamics.
Flexible Utilization
AIUs can be utilized across different computational requirements, from large-scale training operations to real-time inference applications, providing maximum flexibility for diverse defense AI applications.
Cross-Portfolio Collaboration
The standardized AIU framework enables collaborative projects between portfolio companies, allowing resource pooling for large-scale initiatives while maintaining individual project security and intellectual property protection.
Funding Structure & Milestones
The funding structure leverages established government contracting mechanisms while providing flexible scaling options that align with project success and expanding requirements. Our approach utilizes milestone-based funding, which provides a strategic approach where investors provide funding in tranches contingent upon achieving specific objectives.
Vehicle and Structure
Vehicle: Commercial Solutions Opening (CSO) → Prototype Other Transaction (10 U.S.C. 4022), firm-fixed-price, milestone-based; Production OT or sponsor vehicle on success.
Primary ask: $88M - $125M (with $50M fallback; $300M ceiling via options), and $7 MM in bridge funding to secure building purchase with current owner and operational expenses for CAEROS.
The milestone-based funding structure enables faster feedback loops and creates explicit targets for performance measurement. This contractual agreement releases capital commitment in stages as specific milestones are achieved, reducing risk for DIU while ensuring rapid delivery capability.
Milestones (Primary $125M)
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M1 – $50M (0–30 days)
PPA surety bond, site hardening for 5MW Day-1, SLA finalization, long-lead orders (networking/thermal/racks).
  • Establishes foundational infrastructure and secures long-term power agreements
  • Initiates critical path activities for rapid deployment
  • Finalizes service level agreements ensuring performance guarantees
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M2 – $38M (30–60 days)
5MW hardware ramp (initial GPU tranche), IL-path controls; first workloads; six tenants on-boarded.
  • Deploys initial computational capacity with AI-optimized hardware
  • Implements security controls for classified workload processing
  • Demonstrates operational capability with initial portfolio company tenants
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M3 – $37M (60–90 days)
IL-4/5 artifact pack; RMF draft; monthly delivery ≥ 2,700,000 PFLOP-hours (5 MW floor)
  • Delivers comprehensive security documentation for classified processing
  • Achieves target computational throughput demonstrating full operational capability
  • Establishes collaborative research environment for portfolio companies
Fallback $50M (Floor Funding)
M1 – $30M
PPA surety bond; minimum facility upgrades; DIU capacity reservation established.
  • Secures essential infrastructure foundation and power agreements
  • Establishes capacity allocation for DIU, DoD/Dow portfolio companies and contractors
  • Provides baseline capability for immediate deployment if full funding unavailable
M2 – $20M
5MW test-net capability (reduced GPU tranche), enclave plan + initial controls; 6 firms on-boarded.
  • Delivers operational capability with reduced but functional computational capacity
  • Implements essential security controls and compartmentalization
  • Demonstrates viability for scaling to primary funding level via options
Upper Bound $300M (Base + Options)
Base $125M (as above) + Options up to $175M for full 20MW build (≈$200M GPU fleet; phase by PFLOP-hour blocks).
Options trigger on milestones: interconnect/surety complete, IL acceptance, cohort expansion to twelve firms, PFLOP-hour delivery thresholds.
  • Provides scalable expansion pathway based on demonstrated success and demand
  • Enables full facility build-out while maintaining fiscal responsibility
  • Creates performance incentives aligned with DIU objectives and portfolio company needs
Commercial Match and Financing Integration
Commercial match: Parallel debt/equity alongside DIU (color of money flexible). Names/details under NDA/annex.
This structure leverages the rise of private credit in AI infrastructure and follows successful models demonstrated by recent large-scale AI infrastructure financing. Meta's recent $29 billion hybrid financing and other major AI infrastructure investments demonstrate investor appetite for well-structured AI data center projects. The parallel commercial financing provides:
Risk Mitigation
Reduces government exposure while leveraging private capital efficiency
Acceleration
Enables faster deployment through combined public-private resources
Scalability
Provides foundation for expansion beyond initial government commitment
Market Validation
Demonstrates commercial viability of the infrastructure model
Technical Implementation Roadmap
30/60/90 Day Plan
Our structured implementation approach leverages best practices in AI roadmap development and executive planning frameworks to ensure rapid capability delivery while maintaining strategic oversight. This actionable guide formulates a comprehensive game plan for the first three months, providing explicit targets and measurable outcomes at each phase.
30 days
Facility readiness checklist; enclave plan; cohort selection; SLA & AIU terms set.
  • Complete comprehensive facility assessment and security hardening requirements
  • Finalize enclave architecture for IL-4/5 processing capabilities
  • Select initial cohort of DIU portfolio companies for priority on-boarding
  • Establish service level agreements and Compute Allocation Credit terms
  • Execute long-lead procurement orders for critical infrastructure components
60 days
First workloads running; six tenants on-boarded; draft RMF artifacts delivered.
  • Achieve operational capability with initial AI workloads processing
  • Complete on-boarding of initial tenant portfolio companies
  • Deliver draft Risk Management Framework documentation package
  • Demonstrate security controls implementation and operational procedures
  • Establish baseline performance metrics and monitoring capabilities
90 days
≥ 2,700,000 PFLOP-hours delivered; ≥ 6 problem statements at transition gate; ATO path agreed.
  • Achieve target computational throughput demonstrating full operational capacity
  • Complete evaluation of specific national security problem statements
  • Establish agreed path for Authority to Operate (ATO) certification
  • Demonstrate collaborative research capabilities across portfolio companies
  • Validate scalability framework for expansion to full 20MW capacity
This structured approach aligns with proven AI implementation methodologies that provide actionable steps and strategic frameworks, while incorporating the leadership transition best practices used by technical and project management roles. The 30-60-90-day framework serves as a structured guide through initial transition phases, ensuring systematic progress toward operational objectives.
Phased Deployment Strategy
Our implementation roadmap balances rapid capability delivery with long-term scalability, incorporating lessons learned from AI infrastructure development and proven deployment methodologies:
2026 Testnet Deployment
Initial deployment of credit-based computing infrastructure with limited portfolio company access for testing and validation of security protocols, ensuring all systems meet defense-grade requirements before full operational deployment.
2026 Multi-Site Expansion
Extension beyond the Hawthorne facility to create redundant capabilities and geographic distribution, reducing single-point-of-failure risks while expanding total computational capacity available to DIU portfolio companies.
2027 Global Deployment
International expansion to support allied nation partnerships and global defense collaboration while maintaining strict security controls and export compliance requirements.
The roadmap provides a flexible planning schedule to support strategic and long-range planning, matching short-term and long-term goals with specific technology capabilities. This approach follows the proven methodology of aligning AI infrastructure investments with business strategy, ensuring that each phase delivers measurable value while building toward comprehensive capability.
Integration with CAEROS Portfolio Capabilities and AIU Tokenization
The AIU infrastructure leverages the CAEROS integrated portfolio approach and the AIU Tokenization services to provide comprehensive solutions that extend far beyond traditional computational resources, incorporating advanced digital integration functionality and capability portfolio management principles to maximize cross-portfolio synergies:
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Aerospace & Defense Integration
Direct integration with unmanned systems (UAVs, UGVs), tactical mobility platforms, and mission-critical aerospace contractor components ensures that AI capabilities are optimized for actual defense applications rather than generic commercial use cases. This integration follows DoD Directive 7045.20 capability portfolio management principles to advise on capability investment and ensure maximum operational effectiveness.
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ML, AI & Autonomous Systems Synergy
Our portfolio companies specializing in tactical autonomy software, threat detection systems, robotics for inspection and logistics, and edge-AI deployments provide the domain expertise necessary to optimize infrastructure for defense-specific AI workloads. Integration enables accelerated strategic execution by integrating business and technology planning while optimizing all resources for maximum mission impact.
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Compliance Infrastructure Leverage
Shared government contracting systems, SAM registration, GSA schedules, and ITAR/EAR compliance capabilities ensure that AIU infrastructure meets all security and regulatory requirements from day one. This leverages enterprise services integration principles to provide unified business and technical services across the portfolio.
Digital Twin & Hardware-in-the-Loop Options
Option: Digital Twin & HIL (supports bench + flight)
  • Targets: Correlation < 1%, fault-coverage ≥ 90%, recovery ≤ 0.5 s.
  • Deliverables: twin model + test vectors; correlation report (<1% error); fault-coverage ≥90%; recovery ≤0.5 s; redline to flight SW; inputs to flight-demo plan.
  • Duration/Budget (indicative): 60–90 days; $1.5M–$2.5M (range indicative; refined in SOW).
The integration of Digital Twin and Hardware-in-the-Loop (HIL) capabilities represents a revolutionary advancement in defense system validation and testing. Digital twins are realistic digital models of physical systems or processes, with sensors that measure real-world parameters and a simulation engine, while HIL simulation is a technique used in the development and testing of embedded systems in real time. This combination creates unprecedented opportunities for mission-critical system validation and fault tolerance testing.
Build a mission digital twin synchronized to the bench rig (HIL): Our facility will develop comprehensive digital twins that serve as virtual equivalents of mission-critical defense systems, synchronized in real-time with physical Hardware-in-the-Loop test rigs. Digital twins can leverage static and live data streams such as SCADA, IoT, and AMR/AMI data to describe system performance more precisely, enabling accurate representation of complex defense systems. The HIL component involves using actual target hardware while the HIL systems produce electrical signals that mimic the operational environment, creating a complete validation environment that bridges virtual and physical testing domains.
Run fault-injection (SEE/SEU, brownouts, link loss) and compare twin hardware outcomes: The system will implement dynamic fault injection capabilities that can introduce fault structures into digital twins without the need to change the virtual prototype model. This technology enables testing of Single Event Effects (SEE), Single Event Upsets (SEU), power brownouts, and communication link losses - all critical failure modes in defense applications. Real-time data from HIL integrated into the digital twin framework helps pinpoint potential issues before they disrupt the actual system. The fault injection methodology will focus on injection of faults provoking potential critical system states, making it possible to study the impact of faults and test safety mechanisms.
Deliverables: The comprehensive delivery package includes:
  • Twin model + test vectors: Complete digital twin models synchronized with physical test hardware, including comprehensive test vector suites covering normal operations and fault scenarios
  • Correlation report (twin error < 5%): Detailed correlation analysis demonstrating the accuracy of the digital twin compared to physical hardware performance, with twin error rates maintained below specified thresholds
  • Fault-coverage ≥ 95%: Comprehensive fault coverage analysis demonstrating that the test suite covers the required percentage of potential failure modes and system states
  • Recovery ≤ 10s: Validation of system recovery times from fault conditions, ensuring that recovery mechanisms operate within specified time constraints critical for mission success
  • Redline to flight SW: Direct integration pathway from bench testing to flight software deployment, including configuration management and version control
  • Inputs to the flight-demo plan: Comprehensive test results and validation data that directly inform flight demonstration planning and risk assessment
Advanced Capabilities Integration
The Digital Twin and HIL capabilities leverage innovative developments in the field:
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AI-Enhanced Digital Twins
Integration of generative AI techniques with digital twins addresses challenges in planning and management of complex systems, enabling more sophisticated modeling and prediction capabilities for defense applications. This follows emerging technology integration principles to leverage AI advancements for defense applications.
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Dynamic System Modeling
The technology allows users to perform simulations on 3D physics-based digital models of infrastructure, called digital twins, providing unprecedented insight into system behavior under various operational conditions. This capability supports the development of AI-native systems that can adapt to complex operational environments.
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Unified Fault Diagnosis
Implementation of unified hybrid approaches for sensor and actuator fault diagnosis in digital twins for remote operations, ensuring comprehensive system health monitoring and fault detection capabilities. This integrates IoT technologies to provide comprehensive sensor integration and monitoring.
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Real-Time Adaptation
Development of AI-assisted digital twin models with the ability to adapt and control physical machines in real time, creating responsive systems that can automatically adjust to changing operational conditions. This capability leverages 5G NR technologies for low-latency, high-bandwidth connectivity essential for real-time control applications.
Strategic Value for DIU Portfolio Companies
The Digital Twin and HIL capabilities provide unique advantages for defense contractors and national security applications:
Risk Reduction: Comprehensive testing in virtual environments before deployment to physical systems significantly reduces risk and development costs while improving system reliability.
Accelerated Development: The ability to evaluate complex scenarios and fault conditions in digital twins enables rapid iteration and optimization of defense systems without the costs and risks associated with physical testing.
Mission Assurance: Thorough fault injection testing and validation ensures that critical defense systems can maintain operation under adverse conditions, providing the reliability required for national security applications.
Integration Readiness: The direct pathway from bench testing through digital twin validation to flight software deployment ensures that systems are thoroughly validated and ready for operational deployment.
Cost Efficiency: Digital twins could improve public sector capital and operational efficiency by 20 to 30 percent, providing significant cost savings for defense programs while maintaining or improving capability levels.
The integration of Digital Twin and HIL capabilities with the CAEROS AIU infrastructure creates a comprehensive validation and testing environment that enables DIU portfolio companies to develop more dependable, robust, and mission-ready defense systems. This combination of advanced computational resources with sophisticated testing methodologies provides a unique competitive advantage in the development of next-generation defense technologies.
The integration follows established patterns for organizational AI implementation, creating an AI Center of Excellence model that enterprises can use to respond to AI opportunities while maintaining strategic focus on defense applications. This approach integrates with portfolio management functions to enable better communication between development teams and operational managers while providing interfaces with execution systems essential for mission success.
Enhanced Service Delivery and Customer Integration
Multi-Channel Access Framework
CAEROS established multi-channel sales and marketing strategy provides multiple pathways for DIU portfolio companies to access AIU infrastructure:
B2G Channel Integration
Existing SAM.gov and GSA Schedule registrations, strategic RFP bidding capabilities, and relationships with procurement officers ensure rapid adoption of credit-based computing services by government customers.
Direct Portfolio Company Support
Relationship-based selling through industry veterans and presence at key industry trade shows (SHOT Show, IACP, AUSA) provides direct channels for promoting AIU capabilities to the defense industrial base.
Cross-Selling Opportunities
Integration with CFSU's and CAEROS broader portfolio of defense and security companies creates natural cross-selling opportunities, positioning AIU access as part of comprehensive defense technology solutions.
Comprehensive Customer Segmentation
Our diversified customer base spans the full spectrum of national security applications:
Government & Defense Customers
Direct relationships with Department of Defense (DOD), Ministers of Defense (MOD), state and local police departments, Homeland Security units, National Guard, and Department of Corrections ensure broad adoption across the defense community.
Private Security & Civilian Markets
Established relationships with private security firms, corrections, armored transport companies, and high-net-worth individuals create opportunities for dual-use applications that strengthen the overall business model.
Strategic Integration Opportunities: Our position serving one-third of U.S. households that own firearms and 141 million U.S. consumers in outdoor industries provides market channels for promoting AI-enabled products and services across the broader preparedness community.
Financial Framework and Investment Strategy
Projected Growth Alignment
The AIU project financial projections demonstrate the scale of operations capable of supporting major AI infrastructure investments:
Revenue Trajectory
Projected revenue of $6M by 2028 with 86% cumulative revenue growth demonstrates the financial capacity to support and expand AIU infrastructure operations.
Profitability Growth
1% cumulative EBITDA growth reflects operational efficiencies and synergy realization that reduce the operational costs of AI infrastructure while maintaining service quality.
Market Valuation
NYU Stern analysis showing EV/Total-Revenue multiple of 2.60 for the Aerospace and Defense sector, with target estimated market caps of $1.09B (2026), $1.6B (2027), and $2.15B (2028) demonstrates the financial capacity for sustained infrastructure investment and expansion.
Strategic Value Creation Through Integration
CAEROS and CFSU's integrated approach creates unique value propositions that traditional data center operators cannot match:
Systematic Integration
Building value through systematic integration of complementary businesses, operational efficiencies, and cross-selling opportunities across the national security ecosystem ensures sustainable competitive advantages.
Multiple Exit Pathways
Public market listing as a conglomerate holding in the military and civil defense sector, potential acquisition by Tier 1 defense contractors, and additional investment from institutional sources provide multiple pathways for realizing investment returns while maintaining operational continuity.
Vertical Integration Advantages
Accelerating revenue growth through cross-selling, vertical integration, and leveraging public markets creates sustainable competitive moats that protect AIU infrastructure investments while providing superior service to DIU portfolio companies.
Comprehensive Security Architecture
The AIU infrastructure incorporates multiple layers of security appropriate for national security applications, leveraging industry-leading frameworks and best practices to ensure the highest levels of protection for defense AI workloads.
Controls Framework
ITAR/EAR Procedures
CFSU's existing ITAR/EAR compliance capabilities are fully integrated into the facility's operational framework, ensuring that all international traffic in arms regulations and export administration regulations are effectively managed. Our comprehensive export control compliance program includes proper screening procedures as the first line of defense, with established protocols for managing export control compliance risks throughout product development. The facility maintains strict controls for managing cross-border data transfers and implements robust enforcement risk mitigation strategies for export controls and anti-discrimination requirements.
Export Screening
Every company's first line of defense is developed through proper screening procedures, which we have implemented as one of the most critical steps for export compliance. Our screening systems incorporate NATO procurement compliance strategies and address the intersection between acquisition processes and multiple regulatory frameworks. We maintain current awareness of Department of Commerce policies regarding export controls violations as significant aggravating factors, ensuring initiative-taking compliance management.
Visitor/Device Policies
Comprehensive visitor management and device control policies ensure that all personnel and equipment accessing the facility meet appropriate security clearance requirements and comply with defense contracting standards. Physical access controls are integrated with digital security protocols to maintain complete chain of custody for all computational resources and data.
Cybersecurity Framework
CMMC Level 2 Roadmap
The facility implements a comprehensive Cybersecurity Maturity Model Certification (CMMC) Level 2 roadmap, ensuring compliance with all Department of Defense cybersecurity requirements. This includes implementation of all required security controls, documentation of security processes, and regular assessment of cybersecurity maturity across all operational domains.
SOC 2 Compliance
Service Organization Control 2 (SOC 2) compliance ensures that the facility meets the highest standards for security, availability, processing integrity, confidentiality, and privacy of customer data. Regular SOC 2 audits provide independent verification of security controls and operational procedures.
Centralized Logging/Monitoring
Advanced security information and event management (SIEM) systems provide centralized logging and real-time monitoring of all facility operations. Integration with AI-powered threat detection systems enables initiative-taking identification and response to potential security incidents across the entire infrastructure.
Incident Response Runbook
Comprehensive incident response procedures ensure rapid and effective response to any security events. The runbook includes escalation procedures, communication protocols, and recovery procedures designed to minimize impact on mission-critical operations while maintaining security integrity.
Impact Level Security Implementation
IL-4/5 Enclave Plan: The facility design includes comprehensive plans for Impact Level 4 and 5 enclaves, ensuring appropriate security controls for processing classified information up to the Secret level. Implementation includes:
Boundary Controls
Multi-layered network security controls including firewalls, intrusion detection systems, and network segmentation to prevent unauthorized access and data exfiltration.
Identity Management
Multi-factor authentication, privileged access management, and continuous identity verification ensuring that only authorized personnel can access appropriate resources.
Encryption
End-to-end encryption for data at rest and in transit, with hardware security modules (HSMs) providing cryptographic key management and protection.
Segmentation
Physical and logical network segmentation isolating different security domains and ensuring that classified workloads remain appropriately separated from unclassified operations.
Risk Management Framework (RMF) Artifacts
  • Initial POA&M: Plan of Action and Milestones documenting all identified security weaknesses and the planned remediation actions, timelines, and responsible parties for addressing each vulnerability.
  • SSP: System Security Plan providing comprehensive documentation of security controls implementation, including control descriptions, implementation details, and assessment procedures.
  • CONOPS: Concept of Operations document describing how the facility will operate within the broader defense IT ecosystem, including integration points, data flows, and operational procedures.
  • Test Plans: Comprehensive security control testing procedures ensuring that all implemented security measures function as designed and meet DoD/DoW requirements.
  • 30-Day Artifact Pack: Complete documentation package delivered within 30 days of award, providing all necessary artifacts for security assessment and authorization processes.
Supply Chain Risk Management (SCRM)
Vendor Vetting
Comprehensive vendor assessment processes ensuring that all suppliers meet appropriate security standards and do not present supply chain risks. This includes background investigations, financial assessments, and security capability evaluations for all critical suppliers.
SBOM Tracking
Software Bill of Materials (SBOM) tracking for all software components used in the facility, providing complete visibility into software dependencies and enabling rapid response to newly discovered vulnerabilities.
Firmware Controls
Comprehensive firmware integrity management ensuring that all hardware components maintain appropriate security configurations and that firmware updates are properly validated and controlled.
Supply-Chain Attestations
Formal attestations from all suppliers regarding the security of their products and services, including country of origin documentation and security control implementations.
Data Handling & Retention
Backup/DR Policy: Comprehensive backup and disaster recovery policies ensuring that all critical data and systems can be rapidly restored in the event of system failures or security incidents. Backup systems maintain the same security controls as primary systems and are regularly evaluated to ensure recovery capability.
Physical/Logical Segregation: Complete separation of different security enclaves through both physical and logical controls, ensuring that classified and unclassified workloads cannot inadvertently interact or compromise each other.
Data Residency in U.S.: All data processing and storage occurs within United States borders, with contractual and technical controls ensuring that no data leaves U.S. jurisdiction. These addresses growing concerns about cross-border data transfers and ensures compliance with data sovereignty requirements.
Advanced Security Integration
AI-Enhanced Security
Leveraging the latest developments in AI infrastructure security, the facility incorporates NVIDIA-powered security solutions that provide advanced threat detection and response capabilities. Integration with Trend Micro and Cisco security platforms ensures comprehensive protection across all infrastructure layers.
Sovereign AI Infrastructure
Following the model of telcos across five continents building NVIDIA-powered sovereign AI infrastructure, our facility implements sovereign AI capabilities that ensure complete control over AI processing and data handling while maintaining interoperability with allied systems.
Secure AI Factory Architecture
Implementing the Cisco and NVIDIA Secure AI Factory architecture, the facility puts security at its core while simplifying AI infrastructure deployment. This architecture embeds security throughout the entire AI pipeline, from data ingestion to model training to inference deployment.
Industry Reference Architecture
Utilizing the Mirantis AI Factory Reference Architecture, the facility implements industry-leading practices for secure, composable, scalable, and sovereign AI platforms. This provides a proven guideline for building and operating secure AI infrastructure on a scale.
Conclusion and Strategic Recommendation
CAEROS revolutionary approach to AI infrastructure and the AIU Tokenized AI Compute Credits represents a paradigm shift that directly addresses the systemic challenges limiting defense AI development while positioning DIU, DoD/DoW portfolio companies and defense contractors for unprecedented competitive advantages. Our combination of standardized AIUs, institutional-grade infrastructure, comprehensive security architecture, advanced Digital Twin and HIL capabilities, and structured 30/60/90-day implementation plan creates a solution that traditional data center operators cannot match.
The comprehensive implementation roadmap, incorporating proven AI development methodologies and executive transition frameworks, ensures rapid delivery while maintaining strategic oversight. The 30/60/90-day plan provides explicit targets and measurable outcomes, creating the accountability structure necessary for successful technology deployment in defense applications.
The comprehensive funding framework, with its tiered milestone approach from $50M fallback to $300M full capability, provides flexibility while ensuring rapid delivery of critical infrastructure. The alignment with White House AI Action Plan priorities, recent major private sector investments, and federal support for U.S.-based AI infrastructure creates optimal conditions for success.
The comprehensive security framework, incorporating ITAR/EAR compliance, CMMC Level 2 certification, IL-4/5 enclave capabilities, and advanced SCRM procedures, ensures that the facility meets the highest standards for national security applications. The integration of industry-leading security technologies from NVIDIA, Cisco, and Trend Micro provides state-of-the-art protection while maintaining operational efficiency.
The innovative Digital Twin and HIL capabilities provide unique value propositions that enable comprehensive system validation and fault tolerance testing, reducing development risks while improving system reliability. The ability to achieve 20-30% efficiency improvements through digital twin technology, combined with advanced fault injection capabilities, creates unprecedented opportunities for mission-critical system development.
The milestone-based funding structure enables faster feedback loops while providing DIU with explicit performance targets and risk mitigation. The 90-day deployment timeline for initial capability, combined with the structured 30/60/90-day implementation plan and 30-day artifact delivery commitment, demonstrates our readiness to support immediate operational requirements with measurable progress indicators.
We recommend immediate investment discussions to leverage the existing power infrastructure at 15000 Aviation Blvd. Hawthorne, CA 90261 and begin deployment under the proposed milestone framework.
The institutional backing from Carlyle Group, Goldman Sachs, and Copenhagen Infrastructure Partners, combined with parallel commercial financing, provides the financial foundation for rapid deployment while CAEROS proven operational excellence and the AIU Tokenized AI Compute Credits system ensures successful execution.
This proposal represents more than just infrastructure development - it creates a new paradigm for defense AI resource allocation that strengthens America's technological independence while providing DIU portfolio companies with the computational resources necessary to address our nation's most pressing national security challenges. The credit-based approach ensures transparency, efficiency, and scalability while the integrated portfolio model provides comprehensive solutions that extend far beyond basic computational access.
The time for incremental improvements in defense AI infrastructure has passed.
The scale and complexity of emerging threats require revolutionary approaches that match the ambition of our adversaries while leveraging America's unique advantages in innovation, capital formation, and technological integration. The CAEROS infrastructure proposal provides exactly this revolutionary capability, positioned for immediate deployment and long-term strategic advantage through our proven 30/60/90-day execution framework and milestone-based delivery structure.