United States: Palantir Technologies (PLTR.O) and Anduril, both tech defense firms are in the process of reaching out about a dozen rival contractors to work collaboratively towards submitting a proposal for outsourcing on U.S government contracts, according to the Financial Times on Sunday.
Major Players Join Forces
In addition to Musk and the defense contract, Gecko, the consortium that could reveal other contracts with overly other tech companies in January, will comprise SpaceX, OpenAI, an autonomous boat builder Saronic, as well as an artificial intelligence data group Scale AI, an unnamed paper reported, citing several peers familiar with the matter, as reported by Reuters.
“We are working together to provide a new generation of defense contractors,” a person involved in developing the group told the newspaper.
Palantir, Anduril, OpenAI, Elon Musk's SpaceX To Take On Defense Giants:
— TifaniesweTs (@TifaniesweTs) December 23, 2024
Palantir (PLTR), Anduril Industries are talking with many other tech companies, incl OpenAI and Elon Musk's SpaceX to form a consortium to jointly bid on US government contractshttps://t.co/IYQFUkjIZE
The consortium, the newspaper said, will combine the muscle of some of the valley’s most valuable firms and use their products to offer a better way of supplying the US government with top-end defense and weapons capability.
Key Companies Remain Tight-Lipped
Anduril, Orca, OpenAI, Scale AI, and Saronic did not provide comments on the report per emails sent to the companies by this reporter. Attempts to reach SpaceX for comments on the story were not successful at the time of preparing this report.
While feeding you with efficacy and Mars crap, top defence contractors like SpaceX, Palantir, Anduril, OpenAI, Saronic and Scale AI are allying to create a monopoly on sucking your taxes out of the budget. Clap your hands. You'll have nothing and be happy. https://t.co/zlC9ZSuSzu
— Vince Leos (@VinceDeMerkato) December 23, 2024
Reuters stated in early December that Trump’s planned US government efficiency with Musk may trigger a series of mergers between large manufacturers and small IT specialists in such sectors as drones, uncrewed submarines, and artificial intelligence.
Industry Reaction and Implications
Palantir and Anduril reportedly building a tech consortium to bid on defense contracts | TechCrunch https://t.co/faq6OGzqG5
— Masayuki Hatta (@mhatta) December 23, 2024
Musk, who is to head one of the United States government efficiency drives back the incoming government, has disclosed that Pentagon outlay and priorities would be on the efficiency drive hit list, sending ripples of apprehension at Bell defense giants Boeing, Northrop Grumman, Lockheed Martin, and General Dynamics.
Focus on Innovation and Efficiency
Musk and many small defense tech firms have been on the same side of the fence when it comes to knocking down traditional defense projects such as the Lockheed Martin F-35 fighter jet while urging for a production line of cheap AI-driven drones, missiles, and submarines, as reported by Reuters.
Palantir $PLTR and Anduril are in talks with SpaceX, OpenAI, and others to form a group that would jointly bid for U.S. Government contracts. – Reuters pic.twitter.com/iZjpibf9zo
— Marketsai (@marketsai75174) December 23, 2024
Such perspectives have given large defense companies more reasons to engage the emergent defense technology players in these fields.