7. Anduril Industries

Founders: Brian Schimpf (CEO), Palmer Luckey, Trae Stephens, Matt Grimm, Joe Chen
Launched: 2017
Headquarters: Costa Mesa, California
Funding: $2.3 billion
Valuation: $8.4 billion
Key technologies: Artificial intelligence, autonomous vehicles, edge computing, explainable AI, machine learning, robotics, software-defined security
Industry: Defense
Previous appearances on Disruptor 50 List: 1 (No. 23 in 2022)

Throughout 2022, defense technology specialist Anduril Industries supplied drones, artificial intelligence software and training to help the Ukrainian Armed Forces conduct surveillance and reconnaissance missions. Providing resources for the war effort was a boost for the defense contracting startup that set out to make the U.S. military more high tech.   

Anduril Industries operates in an increasingly complex security environment, where science and technology innovation are needed for the U.S. military to keep an edge. Just $34 billion of the $857 billion U.S. national security budget last year went to innovation funding, and McKinsey & Company predicts only slight increases for high-tech defense spending.

There is more AI in a Tesla than in a U.S. military vehicle and better computer vision in a Snapchat app than in a Department of Defense system, Anduril often notes. The absence of a crisis in the aftermath of the Cold War made for complacency.

With a recent round of venture financing directed toward cutting-edge autonomous militaristic products, Anduril Industries stands to help fill this gap and scale it up.

Its name coming from the broken sword in The Lord of the Rings trilogy, Anduril was started in 2017 by billionaire Oculus Rift designer Palmer Luckey, a former Oculus colleague, and three former employees from software and data analytics firm Palantir Technologies, a specialist in defense, intelligence systems and homeland security.

Last year, Anduril secured a $1.5 billion investment at a valuation of $8.48 billion, bringing its total funding to $2.3 billion. Its investors include long-time company backer Valor Equity Partners, along with Silicon Valley firms Founders Fund, Andreessen Horowitz, General Catalyst, and angel investor Elad Gil.

The startup has shown its rate of innovation can be at the pace of techie startups, unlike defense contractor historically. It went from sketches to prototype to a contract with U.S. Special Operations Command and a $1 billion program with the Department of Defense in just 31 months.

To power its products, Anduril leverages AI, machine learning and computer vision in core software operating system Lattice. Last year, it launched Mobile Sentry, which uses AI to track objects in the air and on the ground, and also introduced computing platform Menace, geared for secure command control and communications. Additionally, drone developer Altius was acquired in 2021.  

Building on that acquisition, last year Anduril Industries partnered with the U.S. Special Operations Command on a 10-year, $967 million contract to provide systems for shooting down drones. Anduril also joined forces in 2022 with American Rheinmetall Vehicles to design a new combat vehicle for the U.S. Army, equipped with customized command and control software.

Anduril also bought startup Dive Technologies, a maker of underwater vehicles, to expand its suite of autonomous vehicles. That deal subsequently led it to set up an entity in Australia to design, develop and manufacture three unmanned subs for the Royal Australian Navy.