The U.S. Army has signed a long-term agreement with defense technology startup Anduril, a deal that could be worth up to $20 billion over ten years. The contract begins with a five-year base period, with an option to extend for an additional five years, and covers a range of capabilities including hardware, software, infrastructure, and AI-enabled services.
The Army described the agreement as a consolidated enterprise contract replacing more than 120 separate procurement actions previously used to acquire Anduril’s commercial technologies. Gabe Chiulli, Chief Technology Officer at the Department of Defense’s Office of the Chief Information Officer, indicated that modern warfare is increasingly shaped by software and that faster deployment of digital and AI-driven capabilities is critical for maintaining operational advantage.
Anduril, co-founded by Palmer Luckey, focuses on autonomous defense technologies including drones and AI-powered military systems. Reports indicate the company generated roughly $2 billion in revenue last year and is exploring a new funding round that could value the company at $60 billion.
