According to four people familiar with negotiations, Anduril, a military startup in artificial intelligence, is set to complete new funding that doubles the company's value by double.
The funding round, led by the Founders Fund, which has not yet been closed, raises up to $2.5 billion, people said. The Founders Fund alone will be investing $1 billion, the biggest check they've written, the two said.
Anduril designs and builds autonomous systems and weapons for military and other government agencies, including flying drones, missiles, underwater ships, and surveillance equipment for monitoring both borders and battlefields. This is one of the new waves of companies building systems based on government AI technology.
The Founders Fund, launched by entrepreneur and investor Peter Thiel, has supported Andrill since its launch in 2017, with Trae Stephens, one of Andrill's co-founders, being a partner in the company. Thiel, who co-founded the military technology company Palantir, was a supporter of Republican candidates, including President Trump in 2016 and running JD Vance in the Senate in 2022.
Six months ago, Anduril raised $1.5 billion at a $14 billion valuation.
The Founders Fund declined to comment. CNBC first reported details of the funding consultation.
The latest cash inflows are because defense technology startups are enthusiastic about their outlook. The enthusiasm for building US military technology has grown in Silicon Valley in recent years. This is a reversal from more than a decade away from these contracts. Recently in 2018, thousands of Google employees signed letters protesting the company's military contracts.
That resistance shifted slowly as more venture capital companies poured their money into the sector.
President Trump is expected to turbocharge his investments more. Andrill founder Palmer Lucky has been supporting President Trump since his 2016 campaign. He contributed to President Trump's campaign in the 2016, 2020 and 2024 elections and hosted fundraisers.
On November presidential election night, Lucky posted a meme celebrating Trump's victory. “It's very important to open DOD/Intel to entrepreneurial companies like you,” replied Elon Musk, a high-tech executive and close advisor to the president.
In January, Lucky and Andrill announced plans to build a $1 billion factory in Ohio.
