Defense tech startup Hadrian raises $260M to boost U.S. defense manufacturing with AI

For decades, American manufacturing has been on the decline, slowly gutted, outsourced, and left scrambling to keep up with global competitors like China. Now, Hadrian, a California-based defense technology startup, is betting that AI and automation can help turn that around.

On Thursday, Hadrian announced it has raised $260 million in Series C funding to do exactly that. The round was led by Peter Thiel’s Founders Fund and Lux Capital, with participation from Andreessen Horowitz and Altimeter Capital. The new funds will be used to build a massive 270,000-square-foot factory in Mesa, Arizona, and expand its existing facility in Torrance, California.

Hadrian makes precision machine parts for the defense sector—a part of the supply chain that’s long been dominated by traditional contractors like Lockheed Martin and Northrop Grumman. But the startup is going after that space with a new approach: using robotics and AI to reimagine the factory floor. CEO Chris Power says it’s not about replacing workers—it’s about making them exponentially more productive.

“What we really need in this country is this quantum leap above China’s manufacturing model,” Power told CNBC. “It’s about supercharging the worker versus replacing them.”

With $260M Series C, Peter Thiel-Backed Hadrian Bets Big on U.S. Naval Power and AI Automation

That idea isn’t just talk. Hadrian says its system can train new employees—some of whom have zero prior factory experience—within 30 days. The company claims those workers then operate at ten times the productivity of a traditional machinist. Their current workforce includes former Marines and even ex-nurses who had never worked in a manufacturing environment.

An overall view of the manufacturing line in a Hadrian Automation Inc. factory. Courtesy: Hadrian Automation, Inc.

The new Arizona facility will be four times the size of Hadrian’s California site and is expected to be operational by Christmas. The company says it will create 350 jobs in the area, CNBC reported. Meanwhile, additional facilities are already in the pipeline, with four or five more planned over the next year to help meet demand from the Department of Defense.

“We have to do a lot more,” Power said. “But certainly we’re able to keep up with the scale right now, and grateful to our team and customers for letting us go and do that. As a country, we have to treat this like a national security crisis, not just the economics of manufacturing.”

This isn’t Hadrian’s first big raise. The company raised $92 million just last year. But with U.S. defense budgets surging and geopolitical tensions driving urgency around domestic production, investors are clearly buying into Power’s pitch: that rebuilding America’s manufacturing base isn’t just possible—it’s urgent.

Meanwhile, Hadrian isn’t alone in the space. A new wave of defense startups is rising to fill the gaps left by legacy players—and some are raising even bigger checks. Anduril Industries, founded by Oculus creator Palmer Luckey, builds autonomous systems ranging from surveillance towers and underwater drones to AI-powered battlefield platforms. Backed by Founders Fund as well, Anduril recently pulled in a massive $2.5 billion round, bringing its valuation to $30.5 billion. Like Hadrian, Anduril is going after defense contracts with a Silicon Valley mindset and a willingness to move fast.