Palantir, Anduril join forces with tech groups to bid for Pentagon contracts: Report

Data analytics firm Palantir Technologies and defence tech company Anduril Industries are in talks with about a dozen competitors to form a consortium that will jointly bid for U.S. government work, the Financial Times reported on Sunday.

The consortium, which could announce agreements with other tech groups as early as January, is expected to include SpaceX, OpenAI, autonomous shipbuilder Saronic and artificial intelligence data group Scale AI, the newspaper said, citing several people with knowledge of the matter.

"We are working together to provide a new generation of defence contractors," a person involved in developing the group told the newspaper.

Palantir, Anduril, OpenAI, Scale AI and Saronic did not immediately respond to a Reuters request for comment. SpaceX could not be immediately reached for a comment.

Reuters reported earlier this month that President-elect Donald Trump's planned U.S. government efficiency drive involving Elon Musk could lead to more joint projects between big defence contractors and smaller tech firms in areas such as artificial intelligence, drones and uncrewed submarines.

Musk, who was named as a co-leader of a government efficiency initiative in the incoming government, has indicated that Pentagon spending and priorities will be a target of the efficiency push, spreading anxiety at defence heavyweights such as Boeing, Northrop Grumman, Lockheed Martin and General Dynamics.

Musk and many small defence tech firms have been aligned in criticising legacy defence programs like Lockheed Martin's F-35 fighter jet while calling for mass production of cheaper AI-powered drones, missiles and submarines.

Such views have given major defence contractors more incentive to partner with emerging defence technology players in these areas.

Published - December 23, 2024 08:32 am IST