Silicon Valley Oligarchs Join Forces to Bid for Massive Pentagon Contracts

Palantir and Anduril, two leading U.S. defense technology companies, are spearheading the formation of a consortium with approximately a dozen other tech firms to compete for U.S. government defense contracts. This effort seeks to challenge the dominance of traditional defense contractors like Lockheed Martin, Boeing, and Raytheon. Among the companies reportedly in talks to join the consortium are SpaceX, OpenAI, Scale AI, and autonomous shipbuilder Saronic.

The consortium, expected to launch as early as January, aims to integrate Silicon Valley innovation into U.S. defense procurement. Participants plan to offer advanced, efficient, and cost-effective technologies to support the Department of Defense’s strategic priorities. For example, Palantir’s “AI Platform” has been integrated with Anduril’s “Lattice” autonomous software, while OpenAI’s AI models have been used alongside Anduril’s drone defense systems.

This initiative reflects broader trends in the defense sector. Silicon Valley’s interest in national security has surged amid increased federal spending on defense, driven by global conflicts and geopolitical tensions. Defense tech startups have seen record investments, and some, like Palantir and Anduril, have achieved multibillion-dollar valuations.

The consortium is also positioned to address criticisms of the current defense procurement system, which is often seen as slow and favoring a small group of established contractors. By prioritizing smaller, autonomous, and AI-driven technologies, the group aims to modernize U.S. defense capabilities.

If you value our journalism…

TMJ News is committed to remaining an independent, reader-funded news platform. A small donation from our valuable readers like you keeps us running so that we can keep our reporting open to all! We’ve launched a fundraising campaign to raise the $10,000 we need to meet our publishing costs this year, and it’d mean the world to us if you’d make a monthly or one-time donation to help. If you value what we publish and agree that our world needs alternative voices like ours in the media, please give what you can today.