By Lizette Chapman | Bloomberg
Software company Palantir Technologies and Costa Mesa-based weapons maker Anduril Industries plan to accelerate the use of artificial intelligence in the US military and are inviting other companies to join the effort.
Under an agreement announced Friday, battlefield information created by sensors, vehicles, robots and weapons will be collected by Anduril’s Lattice software and then pulled into a secure Palantir platform that will prepare the data for use in AI training and development. The data gathered would include information classified at the highest levels of secrecy.
The move is the latest in a series of partnerships announced by defense tech companies this week seeking to put AI technology to greater use in military applications. On Wednesday, Anduril unveiled plans to work with OpenAI on anti-drone systems, and Palantir on Thursday signed an accord with Shield AI to collaborate on autonomous flight systems.
The agreements highlight the growing importance of artificial intelligence to the US military as it seeks to maintain an edge over China and other adversaries, creating an opening for contractors to deliver new technology. Palantir’s partnership with Anduril builds on years of coordination between the two companies backed by billionaire venture investor Peter Thiel and signals an expansion of Silicon Valley’s role in reshaping the US defense industry.
Earlier this year, Palantir won the US Army’s Titan contract, making it the first software company to win a prime contract and propelling its government business past analyst estimates. The Denver-based company, co-founded by Thiel in 2003, has seen huge demand for its AI products from both commercial and government customers, sending its shares soaring. At more than $173 billion, its market capitalization now surpasses that of Lockheed Martin Corp.
Co-founded by early Palantir employee and Founders Fund General Partner Trae Stephens, Anduril sells its reusable rockets, drones and submarines and related software platform Lattice to the US and allied countries. Investors last valued it at $14 billion on expectations of continued growth in those sectors as it builds a factory to increase production while exploring new growth areas. Last month, it won a contract with the US Space Command.
Despite progress by startups like Anduril in winning defense dollars, venture-backed startups are far from replacing legacy defense contractors. Elon Musk’s SpaceX won more than 80% of all government spending awarded to startups tracked by the Silicon Valley Defense Group, according to a report earlier this year that doesn’t include Palantir because it is public.
Executives from companies including Palantir and Anduril along with Musk have called for changes in how the Defense Department purchases weapons and other technology to be faster, cheaper and more streamlined. Musk, the world’s richest man, was asked by President-elect Donald Trump to co-chair an advisory panel to make the US government more efficient.
In announcing their new AI effort Friday, Palantir and Anduril described it as a consortium they intend to eventually expand to other industry partners.
“No single company is capable of delivering on the promise of AI for national security,” they said in their announcement. “It takes a team of companies that are willing and able to ensure that the U.S. government remains the world leader in fielding advanced technologies that keep our citizens safe.”
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