Anduril Industries, a U.S. defense technology startup, has successfully secured $1.5 billion in funding. The investment, co-led by Peter Thiel‘s venture capital firm, is aimed at bolstering the production of autonomous weapons for the U.S. military and its allies.
What Happened: The latest funding round, co-led by Founders Fund and Virginia-based investor Sands Capital, has propelled Anduril’s valuation to $14 billion, the defense technology startup announced on Thursday.
Other participants in the round included Fidelity Management, Baillie Gifford, and Franklin Venture Partners, the venture capital arm of Franklin Templeton.
The seven-year-old company plans to use the funds to establish new manufacturing facilities capable of mass-producing “tens of thousands of autonomous weapons systems addressing the urgent needs of the United States and our allies.” The first factory, Arsenal-1, will be built in the U.S.
Anduril, led by Palmer Luckey, has secured contracts with the U.S. and UK military for advanced weapons systems. In 2022, it secured a $1 billion contract from U.S. Special Operations Command to deliver anti-drone technology.
Earlier this year, it beat Lockheed Martin Corp LMT, Northrop Grumman Corp NOC, and Boeing Co BA to win a major U.S. Air Force contract for collaborative combat aircraft, according to a report by the Financial Times.
Why It Matters: The global defense landscape is being reshaped by the increasing integration of AI and other advanced technologies. The U.S. military, for instance, has been using AI to identify targets in recent air strikes across the Middle East, underscoring the pivotal role of machine learning algorithms in combat operations.
Meanwhile, China has been leveraging AI to counter U.S. electronic warfare aircraft in the South China Sea. The People’s Liberation Army Navy of China unveiled its strategies and technology to counter U.S. electronic warfare aircraft, highlighting the growing significance of AI in modern warfare.
Despite the potential for serious safety risks, the rapid establishment of AI Safety Institutes by Western governments has overlooked the governance of military AI use. In April, concerns regarding the lack of governance over military AI use were raised by Marietje Schaake, International Policy Director at Stanford University’s Cyber Policy Center and Special Adviser to the European Commission.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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