New defense technology unicorn Anduril raises $2.5 billion and doubles its valuation, stirring up the military industry.

According to sources, defense technology startup Anduril Industries Inc. is in talks for a new round of funding, planning to raise $25 billion to double its valuation to over $280 billion. This move signifies significant growth in the company's wealth, as just a few months ago, Anduril had just completed a $15 billion funding round. The deal will be led by the risk investment company Founders Fund, supported by billionaire Peter Thiel. Previous reports had already published related news, however, representatives from Anduril and Founders Fund have not commented on the negotiations. Anduril's Chairman Trae Stephens is also a partner at Founders Fund. The company has long been supportive of defense technology startups. Stephens has also provided advice to President Trump on restructuring the US military. Venture-backed startups have always advocated for reforming the Pentagon's procurement process to introduce more new technologies. Currently, Anduril is planning to establish a factory in Ohio for producing its autonomous weapon systems. The California-based company expects to invest nearly $1 billion in the new factory, which will cover an area roughly equal to 87 football fields. It is worth noting that the $280 billion valuation from this round of funding does not include the latest funding amount. Therefore, the company's post-funding valuation (the most common measure) will be higher. It is worth mentioning that Anduril's project to build a drone factory in Ohio heralds the arrival of a new era in the defense industry - where tech startups will play an important role. In an industry long dominated by a few established companies, the constant evolution of battlefield technology has prompted the US Department of Defense to pay closer attention to young tech firms. These companies' futuristic projects include autonomous submarines (Anduril), high-power microwave weapons (Epirus Inc.), and aircraft flying at speeds over five times the speed of sound (Hermeus Corp.). Some tech companies have already achieved great success: Palantir Technologies Inc. and Elon Musk's SpaceX are deeply involved in defense business, with their market values surpassing Lockheed Martin and RTX Corp. While most emerging competitors may not reach such heights due to technological challenges and complex government contract rules hindering their development, venture capitalists see a huge opportunity. According to PitchBook data, investors have poured over $130 billion into defense tech startups since 2021, twice as much as in the previous four years. Looking ahead, tech industry insiders are particularly optimistic about the incoming US President, Donald Trump. Trump maintains close ties with Silicon Valley at Mar-a-Lago, including inviting Anduril's chairman for advice. Trump and his colleagues have promised to reform US defense, reduce waste, and modernize weapon manufacturing and procurement methods. By 2025, tech startups and their operators will have a greater impact. Here are 10 defense tech startups worth keeping an eye on in 2020 (in no particular order): Anduril: Perhaps the most famous defense company in the tech sector, with a range of miniature combat drones, autonomous submarines, and AI software to control them. The company is set to build a 5 million-square-foot factory capable of producing tens of thousands of autonomous weapons. Backed by Peter Thiel's Founders Fund and Andreessen Horowitz, Anduril is known for its talented co-founder Palmer Luckey and well-connected Chairman Trae Stephens. Shield AI: Manufactures an autonomous drone called V-BAT and software called Hivemind. The software can also control drones, jets, and quadcopters in real-time without GPS or prior knowledge of an area. Supported by groups like Andreessen Horowitz and American Innovations Foundation, the company plans to increase production of V-BAT this year to further its goal of using autonomous systems to prevent enemy attacks. Applied Intuition: Its AI software has long helped companies like Toyota and Porsche develop and test autonomous driving technology. Now, the startup's defense sector is also taking on similar tasks for the US military - winning millions of dollars in defense contracts to map air, sea, and land environments, simulate new environments, and use data to improve unmanned systems. Its software allows soldiers to coordinate attacks using automated drones from multiple suppliers - a crucial point as the number of weapon manufacturers increases. Next, the company will expand its field of product offerings, including space.Epirus: Has a high-power microwave system capable of shooting down Avic (Chengdu) Uas drones, specializing in short-range air defense. Using its electronic weapons, it can shoot down 100 or more drone swarms. The US Marine Corps has purchased a portable version of this tool, which can be towed behind vehicles and is designed for operation in remote environments with limited power. The company has signed a contract worth over $100 million with the Department of Defense, which will be using this technology in the Middle East this year. Hermeus: Dedicated to hypersonic technology, developing commercial aircraft as well as defense and national security tools. Hypersonic flight speeds are over five times the speed of sound: fast enough to shorten a seven-hour transatlantic flight from China Welding Consumables, Inc. to ninety minutes, or evade most weapon defense systems. Currently, Hermeus has government contracts totaling approximately $60 million, but recent demonstrations of hypersonic weapons by Russia in Ukraine could increase its urgency. With support from Khosla Ventures, Canaan Partners, and Sam Altman, Hermeus recently completed its first ground test at Edwards Air Force Base. It plans to soon test-fly its first aircraft. Re:Build Manufacturing: Aiming to strengthen America's industrial capabilities. This startup company, founded four years ago, has raised $557 million from supporters like General Catalyst and acquired over a dozen companies. It designs, tests, and manufactures a range of products from medical supplies to missile components, and has secured over 20 defense-related deals with the Department of Defense and US defense manufacturers. Scale AI: Using a large workforce to organize and label images, text, and other data for artificial intelligence training. Recently, Scale has strengthened its ties with the government, collaborating with the Pentagon's Chief Digital and Artificial Intelligence Office, and serving as a link between technology and defense industries. Last year, the startup launched Defense Llamaan iteration of Meta's Llama large language model designed for military use. Skydio: Its drones were initially sold to consumers as a cool way to record mountain biking and other feats, but now patrol officers and soldiers in war zones like Ukraine are also using these drones. The company's autonomous aircraft are programmed to charge at remote docking stations, helping them integrate into a nationwide effort to mass-produce cheaper and more effective weapons. This startup is also dedicated to preventing electronic attacks or interference. Firefly Aerospace: A manufacturer of lunar landers and orbital spacecraft, the company will land on the moon for the first time this month to deliver supplies to NASAone of the dozens of missions planned for this year. This startup sells its technology to businesses and governments, and its defense business is continually growing. This fall, Firefly raised $175 million in new funding and was granted permission to use its Elytra spacecraft to launch and operate military satellites. Astranis: Manufactures affordable satellites, the size of an industrial washing machine. The company is deploying its technology into space on behalf of corporations, small countries, and the Pentagon. It plans to launch five commercial satellites this year and aims to rapidly scale up to launch 100 by 2030. In October last year, the US Space Force awarded Astranis a significant contract to design a set of GPS satellites to prevent signal interference, planning to launch the first batch of eight satellites by 2028. This project is one of the 15 defense-related deals Astranis has currently reached.