Anduril is reportedly in talks to raise $100 billion in funding, more than 3 times last year’s level

Defense technology company Anduril is said to be raising a new round of capital that could raise its value by a whopping $40 billion to about $100 billion, Reuters reported, citing anonymous sources.

The company, which raised $5 billion in May at a $61 billion valuation — itself nearly double the $30.5 billion valuation it reached in its G round in June 2025 — may structure the fundraising as a two-stage process, with the second stage bringing investors at a higher valuation. Reuters reported that both tranches may be closed within the year.

The news comes as the defense technology industry is experiencing an unprecedented recovery, driven by demand for drones, self-driving aircraft, and the role of artificial intelligence in warfare, as the war rages in the Middle East and Eastern Europe. In the first six months of the year, the sector saw venture funding more than double to more than $12 billion, surpassing the nearly $10 billion raised by startups in this space in all of 2025.

Anduril took advantage of this demand, signing contracts with the US Department of Defense, Air Force, and Army; Dutch Ministry of Defence; NATO; United Kingdom Ministry of Defence; Poland; And more.

The company said in May that it had doubled its revenue to $2.2 billion in 2025 from the previous year.

Other startups have benefited as well: military aircraft maker Shield AI in March raised $1.5 billion, Mach Industries quadrupled its value to $1.8 billion last month, and European startup Helsing this month raised $1.8 billion at an $18 billion valuation.

What these deals have in common is a shift toward cheaper, more expendable hardware, often called “referable” systems, rather than the expensive, replaceable equipment that has been specified in defense contracting for decades. Mach CEO Ethan Thornton said the startup is designing systems for today’s era of warfare at a much lower cost than traditional defense contractors, pointing to Ukraine’s use of autonomous drones as a model.

Separately, Mach and Anduril have also moved to secure their own propulsion supplies. Mach acquired solid rocket motor maker Exquadrum for $50 million in May, while the Pentagon has bankrolled Anduril’s efforts to expand domestic solid rocket motor manufacturing capacity — moves aimed at overcoming a supply bottleneck that precedes and interrupts the low-cost weapons trend.

Anduril’s investors include Thrive Capital, Andreessen Horowitz, Founders Fund, ICONIQ, Flux Capital, Greycroft, Altimeter, 1789 Capital, and current US Vice President JD Vance, according to PitchBook.

“No decisions have been made regarding any future financing, and anyone claiming knowledge of its terms, structure, pricing or timing is speculative or misleading. As a private company, we regularly evaluate business growth financing opportunities,” Anduril said in an emailed statement.

Note: This story has been updated to add Anduril’s commentary.