US Army signs contract with defense tech startup Anduril worth up to $20 bln
The United States Army has signed a 10-year contract with the defence technology company Anduril Industries that could be worth up to $20 billion, according to an announcement made by the US Department of War on March 13.
The agreement begins with a five-year base period and includes an option to extend the partnership for an additional five years. Under the terms of the contract, Anduril will provide a range of products and services including hardware, software, infrastructure and operational support.
For all latest news, follow The Daily Star's Google News channel. In a recent announcement, US Army public affairs said, “Previously, the Department of War managed more than 120 separate procurement actions for Anduril’s commercial solutions. The new enterprise contract consolidates contracts and agreements into a single contractual framework, eliminating pass-through charges on subcontracts. This streamlined approach reduces procurement timelines, ensuring Soldiers have rapid access to cutting-edge software platforms, integrated hardware, data and compute infrastructure, and a full range of ancillary support services.”
Anduril was co-founded by entrepreneur Palmer Luckey, who previously founded the virtual reality (VR) company Oculus VR before selling it to Meta in 2014. Luckey later left the company following controversy over reports that he had donated to a political organisation supporting Donald Trump.
According to a recent report by The New York Times, Anduril has gained support within the current administration due in part to its focus on developing autonomous military systems, including drones, fighter aircraft and underwater vehicles. The company generated approximately $2 billion in revenue last year.
A recent report by The Wall Street Journal indicates that Anduril is also in discussions to raise a new round of private investment that could value the company at around $60 billion. The company is in the middle of a funding round led by Thrive Capital and Andreessen Horowitz.
The US Department of Defense is currently engaged in a dispute with the AI company Anthropic, which has filed a lawsuit after being designated a supply chain risk following unsuccessful contract negotiations. OpenAI has also faced public criticism and the departure of one executive after signing a deal with the Pentagon.
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