Palantir (PLTR, Financial) and Anduril are reportedly in discussions with several competitors to form an alliance aimed at bidding for U.S. government contracts, challenging major defense companies. The alliance plans to announce agreements with multiple tech companies soon. Companies in talks to join include SpaceX, OpenAI, Saronic Technologies, and Scale AI.
The initiative seeks to foster a new generation of defense contractors, aiming to capture a larger share of the U.S. federal government's $850 billion defense budget from established giants like Lockheed Martin (LMT), Raytheon Technologies (RTX), and Boeing (BA).
Palantir, known for its big data analytics software, has seen its stock price soar by 300% in the past year, reaching a market cap of $169 billion, surpassing Lockheed Martin. Meanwhile, SpaceX's valuation hit $350 billion, making it the largest private startup globally, and OpenAI's valuation has surged to $157 billion since its inception in 2015.
