A high-speed low runout spindle assembly is provided. The spindle assembly includes a friction drive wheel configured to be coupled to an output shaft of a motor. The friction drive wheel is configured and disposed to directly contact a shank of a bit. A set of bearings is configured to contact the shank of the bit. A bit clamp assembly includes a clamp bearing having a central through-hole dimensioned to accept a lower portion of the shank of the bit. The bit clamp assembly is configured to hold the bit in contact with the set of bearings.