Anduril, a defense technology firm, is reportedly seeking to secure a fresh round of funding that could elevate its valuation significantly by $40 billion, reaching approximately $100 billion, according to reports from Reuters citing unnamed sources.

The organization, which gathered $5 billion in May at a valuation of $61 billion — nearly double the $30.5 billion value it achieved in its Series G round back in June 2025 — might be arranging this fundraising as a two-phase endeavor, with the latter phase involving investors at an escalated valuation. Both phases are expected to wrap up within the current year, as per Reuters.

This development arrives amidst an extraordinary resurgence in the defense tech sector, driven by a surge in demand for drones, autonomous vehicles, and the incorporation of AI in military operations, particularly in the ongoing conflicts in the Middle East and Eastern Europe. In the first half of this year, venture capital investments in the industry surged to over $12 billion, more than doubling the nearly $10 billion raised by startups throughout 2025.

Anduril has capitalized on this increasing demand, securing contracts with the U.S. Department of Defense, Air Force, and Army; the Dutch Ministry of Defence; NATO; the U.K. Ministry of Defence; Poland; and additional entities.

The company reported in May that it had more than doubled its revenue to $2.2 billion in 2025 compared to the previous year.

Other startups are also benefiting: Military aircraft producer Shield AI raised $1.5 billion in March, Mach Industries saw its valuation rise fourfold to $1.8 billion last month, and Europe’s Helsing secured $1.8 billion this month at an $18 billion valuation.

A common theme among these transactions is a pivot towards affordable, more expendable hardware, often referred to as “attritable” systems, departing from the costly-to-replace equipment that has characterized defense contracting for many years. Mach CEO Ethan Thornton has indicated that the startup is developing systems suited for today’s warfare at significantly lower costs than conventional defense contractors, using Ukraine’s deployment of autonomous drones as a benchmark.

In addition, both Mach and Anduril have taken steps to secure their own propulsion supplies. Mach purchased solid rocket motor manufacturer Exquadrum for $50 million in May, while the Pentagon has supported Anduril’s initiatives to enhance domestic production capacity for solid rocket motors — efforts addressing a supply chain issue that has existed before and is associated with the trend for low-cost weapons.

Anduril’s backers comprise Thrive Capital, Andreessen Horowitz, Founders Fund, ICONIQ, Flux Capital, Greycroft, Altimeter, 1789 Capital, and current U.S. Vice President JD Vance, as reported by PitchBook.

“No decisions have been made regarding any future financing, and anyone claiming to know the terms, structure, pricing, or timing is either speculating or misinformed. As a private entity, we consistently assess opportunities to fund business growth,” Anduril stated in an emailed response.

Note: This story was updated to incorporate Anduril’s statement.