Defense Tech

• Tech companies including Palantir, Anthropic, and Anduril are increasingly partnering with the US Department of Defense, marking a significant shift from decades of strained relations between the tech sector and military. • Anduril announced a 10-year, US$20 billion contract with the US military, while Palantir's Maven data analytics platform and Anthropic's AI have been used extensively in operations against Iran, including defense against Shahed drones. • The collaboration represents what investors view as a lucrative opportunity, with traditional military contractors like Lockheed Martin and Boeing now joined by rising tech giants in supplying cloud computing, AI-powered drones, and advanced defense systems.

• The Pentagon transitioned from pilot projects to long-term enterprise contracts with venture-backed defense tech firms, exemplified by deals with Anduril and Palantir totaling billions. • Anduril's contract covers AI-powered drones, autonomous systems, and counter-UAS hardware tied to live missions, setting new benchmarks for manufacturing and delivery. • Steven Simoni of Allen Control Systems called it a 'meaningful signal' that startups must prove operational reliability over prototypes.

• The US Army announced a major enterprise agreement with Anduril, consolidating 120-130 prior orders into a 5-10 year contract worth up to $20 billion for AI drones and detection systems. • The deal shifts Pentagon strategy from pilot programs to long-term fixed-price contracts with select defense tech startups, with an initial $87 million task order issued. • This establishes a benchmark for venture-funded firms, amid tensions with AI companies like Anthropic restricting military use of their models.