Anduril Industries is a defense technology company that, while remaining largely unknown to most people, is increasingly central to the future of U.S. national security. Private-market investors now value the company at roughly $60 billion, a remarkable figure for a firm founded less than a decade ago. That valuation reflects not only rapid growth but also the Pentagon’s growing recognition that the United States must modernize how it builds military power.
Founded in 2017, Anduril set out to challenge the traditional defense contracting model. For decades, the U.S. defense industry has relied on slow procurement cycles and custom-built weapons systems that reward delay rather than speed. That model is poorly suited for an era defined by artificial intelligence, autonomous systems, and rapidly evolving threats from adversaries such as China.
Anduril emphasizes rapid product development, software-driven military systems, and scalable manufacturing. Its goal is to build advanced defense capabilities in months rather than years, bringing the speed and efficiency of the commercial technology sector into national defense. Importantly, the company invests heavily in research and development. It plows its cash flow back into the company.
At the core of Anduril’s approach is a software-first philosophy. Instead of designing hardware and adding software later, the company builds AI platforms that can be embedded across multiple defense systems. These systems can then be continuously upgraded through automated software improvements, allowing military capabilities to evolve quickly without costly changes.
Central to Anduril’s strategy is its Lattice operating system, which connects sensors, radar systems, cameras, and autonomous platforms into a single integrated network controlled by a small number of operators. Lattice merges data from multiple sources into a unified operational picture displayed on a 3D map. Using computer vision and machine learning, the system can identify and track possible threats with minimal human intervention.
The platform operates on a distributed mesh network rather than relying on cloud infrastructure that could be vulnerable in a conflict. Just as importantly, the user interface resembles a modern video game more than a traditional command center, dramatically improving manpower efficiency and reducing training time.
Investors clearly see the promise of this model. Anduril is reportedly raising up to $8 billion in new funding at a valuation of about $60 billion, nearly double its valuation just nine months ago. The surge reflects the company’s ability to meet ambitious development and manufacturing milestones. One such project is Arsenal-1, a planned 5-million-square-foot manufacturing facility designed to produce tens of thousands of autonomous systems annually. The facility reflects a strategic shift in military thinking: future conflicts will require large numbers of autonomous platforms that can be produced quickly and affordably, not small numbers of exquisite, expensive systems.
Another major initiative is Fury, an autonomous jet designed to operate alongside manned aircraft in combat missions. Fury is expected to reach speeds near Mach 0.95, operate at altitudes approaching 50,000 feet, and fly for roughly six hours with a range of about 700 miles. The aircraft will carry advanced weapons and operate on the Lattice software platform, controlled remotely by a ground-based operator. Fury will use mass-produced engines similar to those found in business jets and will be assembled on a production line rather than through specialized manufacturing processes.
The company’s financial growth has been striking. Anduril generated roughly $236 million in revenue in 2022. This year, revenue is expected to exceed $2 billion, nearly tenfold growth in just four years. Margins are reportedly between 40% and 45%, far higher than the 8% to 10% margins typical of traditional defense contractors.
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Companies similar to Anduril represent a critical shift in how the U.S. prepares for scaled global conflict. This is especially relevant in regards to China. Beijing’s military advantage lies in large-scale, more ships, more missiles, and more personnel. Autonomous systems, AI, and software-defined defense platforms offer the U.S. a way to offset those numerical advantages.
By combining Silicon Valley innovation with defense manufacturing, Anduril and similar technology first defense firms are helping ensure that the U.S. maintains military and technological superiority. In an era of intensifying geopolitical competition, innovation is not just valuable, it is essential.
James Rogan is a former foreign service officer who later worked in law and finance for 30 years. He now writes a daily note on markets, economics, politics and social issues.