Silicon Valley consortium to challenge defense industry giants: FT

By Al Mayadeen English
Source: Financial Times
23 Dec 2024 22:53

The initiative seeks to modernize defense procurement and disrupt the decades-old oligopoly held by prime contractors such as Lockheed Martin, Raytheon, and Boeing.

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Lattice Mission Autonomy software by Anduril is demonstrated at the Air & Space Forces Association Air, Space & Cyber Conference, Wednesday, September 13, 2023, in Oxon Hill, Md. (AP)

The Financial Times on Monday reported that Palantir and Anduril, two of the largest US defense technology firms, are in discussions with around a dozen competitors to form a consortium aimed at challenging the dominance of traditional defense contractors.

The group plans to make a formal announcement in January, having already secured agreements with several major tech companies, including SpaceX, OpenAI, Saronic, and Scale AI, according to sources familiar with the matter.

"We are working together to provide a new generation of defence contractors," said one individual involved in establishing the consortium.

The initiative seeks to modernize defense procurement and disrupt the decades-old oligopoly held by prime contractors such as Lockheed Martin, Raytheon, and Boeing, which are often criticized for producing costly and slow-to-develop systems.

The consortium, which brings together some of Silicon Valley's most prominent tech companies, intends to provide innovative, efficient solutions to the US government, particularly in defense and weapons capabilities.

One source noted that the effort aligns with the Department of Defense's priorities and aims to "solve critical software capability problems."

Defense innovation

This development comes as defense technology companies attract record investments, with the US defense budget reaching $850 billion amid growing tensions in Ukraine, the Middle East, and US-China relations.

Companies like Palantir and SpaceX have long secured public contracts, while others, such as OpenAI, have recently shifted their policies to allow military applications of their technologies.

Notably, Palantir's "AI Platform" has been integrated with Anduril's "Lattice" autonomous software to enhance AI capabilities for national security.

Similarly, Anduril has combined its counter-drone systems with OpenAI's advanced AI models to address "aerial threats" for US government contracts.

A joint statement from Anduril and OpenAI stressed their shared commitment to ensuring that the Department of Defense and the intelligence community have access to the "most advanced, effective, and safe AI-driven technologies available."