The United States Army has signed a long-term enterprise contract with defense technology startup Anduril Industries that could be worth up to $20 billion. The agreement, announced late Friday, consolidates more than 120 separate procurement arrangements previously used by the military to purchase the company’s technology.
Under the terms of the deal, the contract begins with a five-year base period and includes an option to extend the agreement for another five years.
Contract Covers Hardware, Software, And Services
According to the Army, the agreement will provide a wide range of Anduril technologies, including hardware, software, infrastructure, and related services.
Officials described the deal as a single enterprise contract designed to streamline how the military acquires the company’s commercial technology solutions.
Gabe Chiulli said the structure reflects the growing importance of software in modern warfare.
He said the military must be able to acquire and deploy software capabilities quickly in order to maintain its operational advantage.
Company Founded By Oculus Creator Palmer Luckey
Anduril was co-founded by Palmer Luckey, who previously created the virtual reality company Oculus VR.
Luckey sold Oculus to Meta Platforms. He later left the company after controversy following reports that he had donated to a political organization supporting Donald Trump.
Luckey has said media coverage misrepresented his political views.
A recent report from The New York Times said Luckey and his company have received support from the current Trump administration because of his plans to expand the use of autonomous military technologies such as drones, submarines, and fighter aircraft.
Anduril Expands Defense Technology Business
The company generated about $2 billion in revenue last year, according to reporting cited by The New York Times.
The company’s name is derived from an object in the fantasy series The Lord of the Rings.
Separate reports indicate that Anduril is currently discussing a new funding round that could value the company at approximately $60 billion.
Defense Technology Deals Face Wider Industry Tensions
The contract announcement comes during broader disputes between defense agencies and artificial intelligence companies.
Anthropic has filed a lawsuit against the United States Department of Defense after being designated as a supply chain threat during a failed contract negotiation.
Meanwhile, OpenAI has faced criticism from some consumers and the departure of at least one executive after entering its own agreement with the Pentagon.
Featured image credits: Public Domain via Flickr
For more stories like it, click the +Follow button at the top of this page to follow us.