Anduril, Palmer Luckey’s startup, just proved it can take on legacy defense contractors and win
Anduril Industries, the defense technology startup led by Palmer Luckey, has just won a major contract from the US Air Force, beating out historic names like Boeing and Lockheed Martin.
Anduril, founded in 2017, was contracted to design and test autonomous combat aircraft as part of the Collaborative Combat Aircraft (CCA) program, a critical part of the Air Force’s efforts to modernize its fleet.
The Air Force ultimately hopes to purchase at least 1,000 CAA systems at a cost of $30 million per drone. In its latest budget request for fiscal year 2025, the government requested $557 million for the program and announced that it planned to spend nearly $9 billion on the initiative by 2029.
The joint contract will be shared between Anduril and General Atomics. Companies will now work on the design, manufacturing and testing of unmanned aircraft and drones.
This decision proves how important autonomy and AI are to the future of US national security strategy.
The final choice fell on five companies: Anduril, General Atomics, Boeing, Lockheed Martin and Northrup Grumman. Rather than the stalwart giants of the defense industry, with long experience in building combat aircraft, it was seven-year-old Anduril that the Air Force chose.
“It is impossible to exaggerate the importance of this victory,” tweeted Lucky following the announcement.
“Anduril proves that with the right team and business model, a seven-year-old company can take on players that have been around for over 70 years. The real winner? The United States of America.”
THE @usairforce selected Anduril to design, manufacture and test production-representative Collaborative Combat Aircraft (CCA).
In the age of great power competition, there is no time to waste in business as usual. We look forward to delivering the ACCs on time, within… pic.twitter.com/EMz8b9LkcY
– Anduril Industries (@anduriltech) April 24, 2024
The U.S. military is increasingly turning to the growing pool of private defense technology startups as it competes with rivals like China to develop the most advanced military technology.
“As a country, we’re making really good progress and moving pretty quickly,” Luckey said in an interview with CNBC. “I’m confident that we’re going to deliver, on budget and on time, some really sick, AI-powered fighter jets,” he added.
Anduril’s success will give hope to other Silicon Valley AI players hoping to break into the defense sector.
And the demand is there for them if they succeed: Venture capitalists have invested more than $100 billion in defense technology since 2021, according to Presentation book data.
“Anduril is proud to pave the way for other non-traditional defense companies to compete and deliver large-scale programs,” the company wrote in a statement.
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