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 U.S. military and are inviting other companies to join the effort.
Under a deal announced Friday, battlefield information created by sensors, vehicles, robots and weapons will be collected by Anduril’s Lattice software, then transferred to a secure Palantir platform that will prepare data for use in AI training and development. The data collected would include information classified at the highest levels of secrecy.
The move is the latest in a series of partnerships announced this week by defense technology companies aimed at making greater use of AI technology in military applications. On Wednesday, Anduril revealed plans to work with OpenAI on anti-drone systems, and Palantir signed a deal with Shield AI on Thursday to collaborate on autonomous flight systems.
The deals underscore the growing importance of artificial intelligence to the U.S. military as it seeks to maintain an advantage over China and other adversaries, creating an opening for contractors to supply new technologies. Palantir’s partnership with Anduril builds on years of coordination between the two companies backed by billionaire investor Peter Thiel and marks an expansion of Silicon Valley’s role in reshaping the U.S. defense industry.
Earlier this year, Palantir won the U.S. military’s Titan contract, becoming the first software company to win a prime contract and propelling its government business beyond analyst estimates. The Denver-based company, co-founded by Thiel in 2003, has seen huge demand for its AI products from commercial and government customers, sending its shares soaring. At more than $173 billion, its market capitalization now exceeds that of Lockheed Martin Corp.
Co-founded by former Palantir employee and Founders Fund general partner Trae Stephens, Anduril sells its reusable rockets, drones and submarines and the associated Lattice software platform to the United States and allied countries. Investors last valued it at $14 billion hoping for 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 US Space Command.
Despite the strides startups like Anduril have made in earning 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 released earlier this year that does not include Palantir because it is public.
Executives from companies such as Palantir and Anduril as well as Musk have called for changes in how the Defense Department buys weapons and other technology so that they are faster, cheaper and more streamlined . Musk, the world’s richest man, was asked by President-elect Donald Trump to co-chair an advisory committee aimed at making the U.S. government more efficient.
In announcing their new AI effort on Friday, Palantir and Anduril described it as a consortium that 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 statement. “It takes a team of companies willing and able to ensure that the U.S. government remains the global leader in implementing advanced technologies that keep our citizens safe.”
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