Palantir and Anduril team up with other tech companies to bid for Pentagon contracts

From Investing.com: 2024-12-22 12:45:13

Data analytics firm Palantir Technologies and defense tech company Anduril Industries are in talks to form a consortium with about a dozen competitors to bid for U.S. government work. The consortium may include SpaceX, OpenAI, Saronic, and Scale AI, aiming to provide cutting-edge defense capabilities more efficiently to the government.

The group plans to announce agreements with other tech groups in January. The consortium will bring together Silicon Valley’s top companies to supply the U.S. government with advanced defense and weapon capabilities. Palantir, Anduril, OpenAI, Scale AI, and Saronic have not responded to requests for comment, while SpaceX was unreachable.

President-elect Donald Trump’s government efficiency drive, involving Elon Musk, could lead to more collaboration between big defense contractors and smaller tech firms in AI, drones, and uncrewed submarines. Musk’s focus on Pentagon spending and priorities has caused concern among major defense contractors like Boeing, Northrop Grumman, Lockheed Martin, and General Dynamics.

Musk and small defense tech firms criticize traditional defense programs like Lockheed Martin’s F-35 fighter jet, advocating for mass production of cheaper AI-powered drones, missiles, and submarines. This has incentivized major defense contractors to partner with emerging defense technology players in these areas to stay relevant in the rapidly evolving defense industry.



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