He described a cold war Russian missile they had somehow obtained and were tasked with trying to reverse engineer. Ostensibly, it was thought to be a heat seeking missile, but there seemed to be no control or guidance circuitry at all. There was a single LDR (light dependent resistor) attached to a coil which moved a fin. That was it. Total cost for the guidance system maybe a couple of dollars, compared to hundreds of thousands for the cheapest guidance systems we had at the time.

The key insight was that if you shined a light at it, the fin moved one way and if there was no light the fin moved the opposite way. That still didn't explain how this was able to guide a missile, but the next realisation was that the other fins were angled so when this was flying (propelled by burning rocket fuel), the missile was inherently unstable - rotating around the axis of thrust and wobbling slightly. With the moveable fin in place, it was enough to straighten it up when it was facing a bright light, and wobble more when there was no bright light. Because it was constantly rotating, you could think of it as defaulting to exploring a cone around its current direction, and when it could see a light it aimed towards the centre of that cone. It was then able to "explore the sky" and latch on to the brightest thing it could see, which would hopefully be the exhaust from a plane, and so it would be able to lock on, and adjust course on a moving target with no "brain" at all.