Anduril CEO Palmer Luckey.

Anduril, the defense technology startup founded by Palmer Luckey in 2017 is reportedly in talks for a funding round which could value the company at $60 billion. The firm, which designs autonomous systems like the Fury combat drone and Ghose Shark submarine, is now riding on the globale increase in defense spending and a shift in Silicon Valley sentiment toward military partnerships. According to a report by Fortune, Luckey, who earlier founded Oculus VR before selling it to Facebook has made it clear that Anduril will act as an extension of US foreign policy. “I’m never going to promise to do something the U.S. wouldn’t do,” he told Fortune. He even went so far as to say he would sell weapons to North Korea if asked by Washington, arguing that corporate executives should not dictate foreign policy.This stance on Luckey places him at the center of debates about alliance politics in Asia, the rise of Chinese military hardware, and the role of tech billionaires in matters of war and peace.

Anduril’s expansion across Asia-Pacific region

Anduril has signed some major deals with Australia, Japan, South Korea and Taiwan, aligning with IS allies in the region. Australia alone has spent $1.1 billion on Anduril’s Ghost Shark submarine program. However, the company’s partnership with Taiwan drew Beijing’s ire, leading China to impose sanctions on both Anduril and Luckey.Luckey argues that future conflicts will be decided by industrial scale rather than a handful of “exquisite” platforms. To that end, Anduril is building a 5-million-square-foot Arsenal-1 factory in Ohio, set to mass-produce drones and weapons systems by mid-2026. He likens the approach to World War II-era U.S. manufacturing, prioritizing speed and repairability over complexity.

Criticism and scrutiny faced by Anduril

Despite its rapid growth, Anduril has faced criticism. Ukranian operators have reportedly stopped using the drones of the company in 2024 due to some performance issues. On the other hand, some US testers also raised concerns about its Lattice operating system. The company defends its “highly iterative” model of development, emphasizing constant testing and refinement.

The bigger picture and global defense spending

For those unaware, the global defense sending reached $2.7 trillion in 2024 and the shares of defense contractors have also surged. Anduril has a projection of $4.3 billion in revenue this year and is also expected to remain unprofitable until later in the decade. The outspoken views of Palmer Luckey praising the manufacturing efficiency of China and mocking its stealth jets highlight both his provocative public persona and his strategic focus on scalable production.