US defense technology company Anduril Industries Inc. is close to raising about $4 billion in a new funding round, which would double its valuation to approximately $60 billion, according to reports from Reuters and The Wall Street Journal. The investment is reportedly being led by venture capital firms Thrive Capital and Andreessen Horowitz (a16z), with the funds intended to support the further development of autonomous combat systems. This funding round confirms massive investor interest in the defense sector, which is gaining importance amid global tensions.

Record Valuation with Near Doubling

Anduril, founded by Palmer Luckey, is set to raise about $4 billion, which will raise its valuation to approximately $60 billion USD. This means nearly doubling its value compared to the previous valuation from 2024, which was about $31 billion.

Leading Tech Investors

The funding round is being led by two top venture capital firms: Thrive Capital, founded by Josh Kushner, and Andreessen Horowitz (a16z). Their involvement underscores Silicon Valley's growing interest in the defense sector and deep technologies.

Use of Raised Funds

The funds are intended for further development and scaling of the company's technologies, including autonomous reconnaissance and combat systems, drones, robotics, and software for battlefield integration and command (Lattice OS).

Growing Trend of Defense Investments

The transaction reflects a broader trend in which private venture capital, traditionally focused on consumer software, is increasingly investing in advanced defense and dual-use technologies.

US defense technology company Anduril Industries Inc. is finalizing one of the largest private funding rounds in the history of the defense sector, set to raise about $4 billion. According to sources from Reuters and The Wall Street Journal, the investment will raise the company's valuation to about $60 billion, nearly doubling its value from the previous round in 2024, which was estimated at $31 billion. The investment is being led by two renowned Silicon Valley venture capital firms: Thrive Capital, founded by Josh Kushner, and Andreessen Horowitz, known by the abbreviation a16z. Their leading role in such a large defense sector transaction is significant. Anduril, founded in 2017 by Palmer Luckey, co-creator of the Oculus Rift virtual reality headset, has from the outset focused on developing autonomous reconnaissance and combat systems, such as kamikaze drones and unmanned underwater vehicles. Its business model, based on rapid prototyping and software that integrates various systems (Lattice OS), has served as an alternative to traditional, multi-year contracts with defense giants. The billions raised are to be allocated to further scaling production, developing new products, and market expansion. The company, which initially worked mainly with US special forces and the Border Patrol, is now also executing large contracts for the US armed forces and allies, including supplying autonomous systems for the US Air Force. This transaction is a symptom of a deeper change in the investment landscape. Traditional venture capital (VC), which for decades focused on consumer software, social apps, and e-commerce, is increasingly flowing toward so-called deep tech and defense. Factors driving this trend include rising geopolitical tensions, increasing defense spending by many countries, and the belief that new technologies like artificial intelligence and robotics will revolutionize future conflicts. Anduril's financial success may pave the way for other startups in this sector, although investments in weapons and military systems remain controversial for parts of the tech community, which has historically distanced itself from cooperation with the military.

Mentioned People

  • Palmer Luckey — Founder and CEO of Anduril Industries, previously co-creator of Oculus Rift.
  • Josh Kushner — Founder and managing partner of the venture capital firm Thrive Capital, which is reportedly leading the investment in Anduril.