The U.S. Army said late Friday it had signed a 10-year contract with defense technology startup Anduril. The size of this transaction could reach up to $20 billion.
According to the announcement, the agreement will begin with a “base term” of five years, with an option to extend the agreement for an additional five years, and will include Anduril hardware, software, infrastructure and services.
The Army describes the contract as a single enterprise contract that integrates “more than 120 individual procurement actions for Anduril’s commercial solutions.”
“The modern battlefield is increasingly defined by software,” Gabe Chiulli, chief technology officer for the Department of Defense’s Office of the Chief Information Officer, said in a statement. “To maintain our edge, we must be able to acquire and deploy software capabilities quickly and efficiently.”
Anduril was co-founded by Palmer Luckey, previously known for selling VR startup Oculus to Facebook (now Meta). Lucky was fired by Facebook after controversy arose following news reports that he had donated to a pro-Trump political group.
Luckey has repeatedly claimed that the media has misrepresented his political views, but according to a recent op-ed in The New York Times, Luckey and Anduril were embraced by the second Trump administration thanks to his vision of reshaping the U.S. military with autonomous fighter jets, drones, submarines and more. The company (named Palantir, after a magical object from The Lord of the Rings) had sales of about $2 billion last year, according to the NYT.
A separate report said Anduril is in talks to raise a new funding round that could value it at $60 billion.
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The announcement also comes as the AI company is locked in a dispute with Anthropic, with the company suing the Department of Defense over designating it as a supply chain threat after failing to negotiate a contract, and OpenAI facing a consumer backlash and the departure of at least one executive after winning a Department of Defense contract of its own.
