@AndurilIndustries is the modern defense and deterrence tech company running a decades old playbook at silicon valley pace. Their goal is to become the next defense prime, one that operates on speed, innovation, and disruption of the status quo.
They are doing this because Washington and the Pentagon have a problem… The 10 largest defense companies account for upwards of 80% of the industries revenue and nearly 2/3rds of major weapon systems contracts in the US have just one bidder.
At a minimum, lower competition means higher prices. But the US Department of Defense is different. Contracts are awarded on a Cost Plus basis. Meaning these companies receive a fixed profit margin. The incentive is not to produce cheap and scalable products, rather product large major platforms like warships and jet fighters.
Anduril is taking a unique approach. They are producing products not based on specifications that the military is putting out but rather where modern deference and deterrence is heading. Their founding team consists of the founder of Oculus VR and a bunch of alumni from Palantir, the original defense technology startup.
In just 7 years, they have managed to produce multiple products, acquire multiple complementary companies, integrate 3rd party hardware into their software, and basically build the future software of the military.
[ad_2]
source
