Defense tech startup Anduril raises $2.5B at $30.5B valuation
Defense technology startup Anduril Industries closed a $2.5 billion funding round Thursday that doubled the company's valuation to $30.5 billion, cementing its position as one of the most valuable private defense contractors in the United States. The Series G round, led by Founders Fund with a $1 billion investment, represents the venture firm's largest check in its history and reflects mounting investor confidence in autonomous warfare technology.
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gettyimages.comOversubscribed Round Signals Market Appetite
The funding round was oversubscribed by eight times, according to an Anduril spokesperson, indicating far more investors sought to participate than the company would accommodate1. Existing investors also increased their commitments from previous rounds2.
Founders Fund, backed by Palantir co-founder Peter Thiel, has supported Anduril since its 2017 founding32. The firm's $1 billion commitment comes as defense budgets increasingly allocate resources toward artificial intelligence and autonomous systems4.
"The goal is a complete rethink of how we approach defense technology," Trae Stephens, Anduril's executive chairman and Founders Fund partner, told Bloomberg Television56. The company, founded by Oculus creator Palmer Luckey, develops weaponized drones and battle management software powered by artificial intelligence56.
6 sources
Microsoft Partnership Delivers Contract Win
The funding announcement follows Anduril's February takeover of Microsoft's troubled $22 billion Army contract for augmented reality headsets1. The Integrated Visual Augmentation System program, originally awarded to Microsoft in 2021, had faced delays and technical problems including soldier reports of headaches and nausea23.
Under the partnership agreement pending Defense Department approval, Anduril assumes production oversight while Microsoft provides cloud infrastructure through Azure23. The contract transfer prompted Luckey to publicly reconcile with former employer Meta, announcing a partnership to develop devices for the military project1.
3 sources
Revenue Growth Fuels Valuation Jump
Anduril reported doubling its revenue to approximately $1 billion in 2024, positioning the company among the fastest-growing defense contractors12. The revenue growth, combined with the Army contract win, has led some analysts to project potential public market valuations exceeding $90 billion should the company pursue an initial public offering32.
The Costa Mesa, California-based company has raised over $3.7 billion in private capital and recently formed a consortium with Palantir Technologies to pursue government contracts as the Pentagon seeks cost reductions42.
"It was the largest check in Founders Fund history," Stephens said of the investment, underscoring the venture firm's conviction in autonomous defense technology56.
6 sources
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How will Anduril's autonomous warfare tech change defense strategies
What does the oversubscribed funding round reveal about investor confidence in defense AI
How might the Microsoft partnership influence Anduril’s future military contracts
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