Anduril to raise $2.5 billion at $28 billion valuation as defense-tech startup expands AI and military contracts

Anduril, the defense-tech startup founded by Palmer Luckey, is set to raise up to $2.5 billion at a $28 billion valuation, according to people familiar with the matter. This marks a significant jump from its previous valuation in August.

The fundraising comes just six months after Anduril secured $1.5 billion in a Series F funding round co-led by Founders Fund and Sands Capital, both known for backing major IPOs like Visa in 2008.

Anduril is challenging traditional defense contractors such as Lockheed Martin, Raytheon, and Northrop Grumman. Unlike these companies, Anduril develops and sells its own products directly to clients, sidestepping the usual military contracting process.

“The company is planning to raise up to $2.5 billion in the round, said the people who asked not to be named because the details are confidential. The latest funding would double Anduril’s valuation from August,” CNBC reported.

An Anduril spokesperson declined to comment.

Founded in 2017 by Brian Schimpf, Palmer Luckey, Joseph Chen, Matt Grimm, and Trae Stephens, Anduril focuses on developing technology for military agencies and border surveillance. The startup aims to support those on the front lines with next-generation tech products. Before founding Anduril, Luckey sold his previous startup Oculus to Facebook in 2014 for $2 billion.

“I’ve been on the tech-for-Trump train for longer than just about anyone,” Luckey told CNBC’s “Closing Bell Overtime” on Nov. 6, right after Trump’s election victory. “The idea that we need to be the strongest military in the world is really non-partisan.”

In December, Anduril partnered with OpenAI to deploy advanced AI systems for “national security missions.” This partnership reflects a broader shift in the tech industry, where AI companies are stepping back from bans on military use and forming alliances with defense contractors and the U.S. Department of Defense. Around the same time, Anthropic and Palantir announced a collaboration with Amazon Web Services to provide U.S. intelligence and defense agencies access to Anthropic’s AI models.

Though Anduril remains privately held, Palantir—which provides software and services to defense agencies—has been a standout performer on the stock market. Over the past year, its stock has surged 370%, pushing its market cap past $250 billion. Palantir’s latest earnings report revealed a 45% increase in government revenue, reaching $343 million.

Peter Thiel’s Founders Fund is leading Anduril’s new financing round with a $1 billion commitment, the largest in the firm’s history, according to sources. Thiel, a major Trump supporter during the 2016 campaign, co-founded Palantir. Trae Stephens, a partner at Founders Fund, is also a co-founder of Anduril.

Anduril’s revenue doubled in 2024 to about $1 billion, with annual contract value hitting $1.5 billion, sources said.

In 2023, the company rolled out several new drones powered by its Lattice AI command and control software. This technology, used by the U.S. military and its allies, directs human-assisted robotics systems to execute complex missions.

Unlike tech giants like Microsoft and Google, which have distanced themselves from selling military technologies to the U.S. government, Anduril actively develops AI-powered military technology for the Department of Defense and other military agencies. This approach has not been without controversy.

Anduril’s portfolio includes surveillance towers and drones, along with software designed to automatically monitor areas such as international borders and military base perimeters. The company’s work with federal agencies, particularly its contracts with U.S. Customs and Border Protection for installing towers along the U.S.-Mexico border, has sparked criticism.

“We founded Anduril because we believe there is value in Silicon Valley technology companies partnering with the Department of Defense,” Anduril’s CEO Brian Schimpf said in a statement.