Anduril Industries, an AI-powered defense startup founded by Palmer Luckey, is currently negotiating a new funding round that could raise its valuation to $28 billion.

The company is seeking to raise up to $2.5 billion in this Series G funding round, which could potentially double its previous valuation of $14 billion.

This interest from investors highlights the growing appetite for investment in the rapidly expanding defense technology sector.

Anduril specializes in autonomous military systems, including drones, missiles, and surveillance equipment, and has secured billions in government contracts.

To enhance its production capabilities, Anduril plans to establish a large-scale weapons manufacturing plant in central Ohio.

In a strategic move, Anduril partnered with OpenAI in December 2024 to integrate advanced AI systems for national security missions.

The company aims to rival established defense contractors by launching a consortium with Palantir to accelerate AI adoption in military applications.

This funding round follows a previous raise of $1.5 billion in August 2024, which significantly increased Anduril's valuation.

CEO Brian Schimpf attended a Pentagon summit on AI strategies, emphasizing the company's commitment to advancing military technology.

Anduril's revenue reportedly doubled to approximately $1 billion in 2024, reflecting a strong market position and investor confidence.

The funding round is expected to be led by Peter Thiel's Founders Fund, which intends to invest $1 billion, marking its largest investment to date.

The rising interest in defense technology among startups contrasts sharply with previous hesitance, particularly highlighted by protests against military contracts in 2018.