Palantir Technologies and startup Anduril Industries are talking with many other tech companies, including OpenAI and Elon Musk's SpaceX, to form a consortium to jointly bid on U.S. government contracts, The Financial Times reported Sunday.
The aim is to take on traditional defense giants such as Lockheed Martin, Northrop Grumman, Boeing and RTX, most likely with artificial intelligence-enabled autonomous technology.
Palantir and Anduril also reportedly are talking to Saronic and Scale AI. Palantir and Anduril aim to announce a series of alliances next month, the FT said.
Scale AI Exec Named Key Tech Advisor
Meanwhile, Trump on Sunday named Scale AI's managing director, Michael Kratsios, as the director of the White House Office of Science and Technology Policy. He will advise artificial intelligence and cryptocurrency czar David Sacks. Kratsios also served in the first Trump administration.
Further, Scale AI holds a nearly $14 billion valuation.
Anduril has been developing pilotless fighter jets and other autonomous systems. It was founded by former Facebook executive Palmer Luckey and three Palantir executives.
In addition, Saronic is developing autonomous ships.
Musk, as co-leader of President-elect Donald Trump's government efficiency drive, has signaled he will target Pentagon spending. He has specifically criticized the F-35 fighter jet as wasteful. Lockheed Martin makes the F-35, with Northrop Grumman a major subcontractor. Boeing is a would-be competitor to SpaceX in private space flight.
Tesla has soared since the election on the belief that the Trump administration will favor the EV giant. Trump's White House also might aid SpaceX, via defense and space government contracts.
Palantir Stock Rises
Palantir stock, which joined the Nasdaq 100 index before the open, fell 3% Monday morning.
Shares jumped 8.5% on Friday to 80.55, a record close. PLTR stock is by far the top performer in the S&P 500 index this year, up 369%.
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