Anduril eyes new round at $120B, nearly double its May valuation
What's the deal? Anduril, the autonomous weapons maker founded by Palmer Luckey, is considering a new funding round at a valuation of around $120 billion, people with knowledge of the conversations said. Senior employees have told investors the company hopes to raise in the first quarter of next year.
Why now? A $120 billion mark would nearly double the $61 billion valuation set in a $5 billion round announced in May, led by Thrive Capital and Andreessen Horowitz. It would also top the $100 billion that Reuters reported Anduril was discussing in July and an ongoing employee share sale pegged at $90 billion.
Not final: With the prospective round months away, the price isn't locked in. "No decisions have been made about any future financing, and anyone claiming knowledge of its terms, structure, pricing or timing is speculating or misinformed," an Anduril spokesperson said.
What's the endgame? Recent contract wins help underpin the jump. In September, the US Army awarded Anduril a nearly $163 million deal to expand its Lattice software platform — a contract that could grow to $1.8 billion over five years. A separate 10-year Army enterprise agreement carries a ceiling of up to $20 billion.
By the numbers: Anduril forecasts revenue will rise to $4.3 billion this year, more than double 2024. That remains small next to incumbents: Lockheed Martin, with a market cap of about $144 billion, expects to generate more than $80 billion this year.
What could go wrong? Contract ceilings are not guaranteed revenue, and Anduril is guiding to a $1.2 billion operating loss this year amid heavy factory and research spending it funds itself. A new submarine-components factory is expected to ramp only from 2030, so execution and capital demands matter as much as headline growth.
The signal: A $120 billion target — even as a reported goal rather than a closed deal — marks a striking premium after Anduril's rapid repricing. It reflects strong investor appetite for defense technology and a company pushing beyond drones and software into large-scale Army and Navy work.
Read more: The Information
Image credit: Generated with Gemini
