The US Army announced a contract with Anduril worth up to $20 billion

The US military said late Friday that it had occurred 10 year contract With the start of defense technology On the sensor. The value of the deal may reach $20 billion.

According to advertisementthe contract begins with a five-year “base term,” with an option to extend the deal for an additional five years, and includes Anduril hardware, software, infrastructure and services.

The Army describes the agreement as a single enterprise contract that brings together what were “more than 120 separate procurement actions for Anduril’s commercial solutions.”

“The modern battlefield is increasingly defined by software,” Gabe Cioli, chief technology officer in the Department of Defense’s Office of the Chief Information Officer, said in a statement. “To maintain our edge, we must be able to acquire and deploy software capabilities quickly and efficiently.”

Anduril was co-founded by Palmer Luckey, who was previously known for selling virtual reality startup Oculus to Facebook (now Meta). Facebook fired Lucky After controversy erupted following a news report that he had donated to a pro-Trump political group.

Luque has repeatedly insisted that the media has misrepresented his political views, but according to A A recent feature in The New York TimesLuckey and Anduril have been embraced by the second Trump administration, thanks to his vision to reshape the US military with autonomous fighter planes, drones, submarines, and more. The New York Times says the company (named Palantir after a magical object in the movie The Lord of the Rings) generated revenues of about $2 billion last year.

Separate reports indicate this Anduril is in talks to raise a new funding round With a valuation of $60 billion.

The announcement also comes as the Department of Defense is locked in a dispute with Anthropic Artificial intelligence company sues the Department of Defense Due to being classified as a supply chain threat after contract negotiations failed, while OpenAI faced Consumer backlash and Departure of at least one executive After signing its Pentagon deal.