Kyle Bass Backs Divergent, Sees Digital Manufacturing Revolution

Prominent investor Kyle Bass, founder of Hayman Capital Management, has expressed strong support for Divergent, a California-based advanced manufacturing company. Bass, who gained recognition for accurately predicting the 2008 financial crisis, has become a vocal advocate for strengthening U.S. manufacturing and reducing reliance on China.

Divergent recently secured $290 million in Series E funding, led by Rochefort Asset Management, where Bass serves as co-CEO. Bass described Divergent as "exactly what America needs" for a "stronger, faster and more adaptable industrial base," and in a Washington Post interview, called the company a contender to "lead the digital manufacturing revolution."

Bass's interest in Divergent aligns with his broader views on industrial policy and supply chains. He has repeatedly stated that domestic capabilities in designing and building critical products offer a strategic advantage in an uncertain global landscape. He noted a significant decline in U.S. manufacturing output and expressed confidence in a forthcoming resurgence.

This investment is directly linked to tangible defense production. Bass showcased a 3D-printed cruise missile by Divergent in a Fox News interview. Subsequently, Divergent announced its partnership with RTX's Raytheon to produce Tomahawk missile midbody structures at its new Long Beach facility, highlighting the company's immediate relevance to defense manufacturing.

Bass emphasizes Divergent's flexibility as a key differentiator. He explained that the company's digital manufacturing platform can produce diverse components, from missile parts to aircraft components and automotive assemblies, showcasing a paradigm shift from traditional, rigid production methods. Divergent was also a central focus at the recent Reindustrialize Summit, an event aimed at fostering collaboration among investors, manufacturers, startups, defense firms, and government leaders to revitalize American industry.