The UK military is to receive an extra £4bn a year over the next four years, the government has said.
The money will fund space and cyber defence projects such as an artificial intelligence agency, and could create 40,000 new jobs.
Defence Secretary Ben Wallace said “letting go” of older weapons would create “headroom to invest”.
The Ministry of Defence’s annual budget is around £40bn, so the £16.5bn over four years is about a 10% increase.
Mr Wallace told BBC Breakfast: “When I looked across at the armed forces today I saw them with equipment that was out-of-date, I saw our adversaries across the world having better equipment, the ability to attack us and harm us getting wider and wider from our capabilities.
Source: BBC News