(Reuters) – Data analytics firm Palantir Technologies (NASDAQ:PLTR) and defense tech company Anduril Industries are in discussions with several competitors to create a consortium for bidding on U.S. government contracts, as reported by the Financial Times on Sunday.
The consortium, potentially announcing partnerships with other tech firms by January, is expected to involve SpaceX, OpenAI, autonomous shipbuilder Saronic, and AI data group Scale AI, according to sources familiar with the situation.
A source involved in the consortium's development stated, "We are working together to provide a new generation of defense contractors."
This coalition aims to combine the resources of some of Silicon Valley's most valuable companies, using their innovations to improve the efficiency of delivering cutting-edge defense and weaponry capabilities to the U.S. government.
Palantir, Anduril, OpenAI, Scale AI, and Saronic did not respond to a Reuters request for comment, and SpaceX was also unavailable for immediate comment.
Earlier reports indicated that President-elect Donald Trump's planned government efficiency initiative, which will involve Elon Musk, may stimulate increased collaborations between large defense contractors and smaller tech firms focusing on artificial intelligence, drones, and uncrewed submarines.
Musk, who is set to co-lead this efficiency initiative in the incoming government, has signaled that Pentagon spending and priorities will be a focal point, raising concerns among major defense contractors like Boeing (NYSE:BA), Northrop Grumman (NYSE:NOC), Lockheed Martin (NYSE:LMT), and General Dynamics (NYSE:GD).
Musk and various small defense tech firms have criticized traditional defense projects like Lockheed Martin's F-35 fighter jet, advocating for the mass production of affordable AI-driven drones, missiles, and submarines.
This perspective has encouraged major defense contractors to seek partnerships with emerging tech players in these sectors.
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