(Reuters) – Data analysis company Palantir Technologies (NASDAQ:) and defense technology company Anduril Industries are in talks with about a dozen rivals to form a consortium that will jointly bid for business for the U.S. government, the Financial Times reported on Sunday.
The consortium, which could announce agreements with other tech groups as early as January, is expected to include SpaceX, OpenAI, independent shipbuilder Saronic, and the artificial intelligence data group Scale AI, the newspaper said, citing several people familiar with the matter.
“We are working together to provide a new generation of defense contractors,” one of the people involved in developing the group told the newspaper.
The newspaper added that the consortium will bring together the weight of some of the most valuable companies in Silicon Valley and will benefit from their products to provide a more efficient way to provide the US government with defense capabilities and advanced weapons.
Palantir, Anduril, OpenAI, Scale AI and Saronic did not immediately respond to a Reuters request for comment. SpaceX could not immediately be reached for comment.
Reuters reported earlier this month that President-elect Donald Trump's planned US government efficiency drive involving Elon Musk could lead to more joint ventures between large defense contractors and smaller technology companies in areas such as artificial intelligence, drones and unmanned submarines.
Musk, who has been named co-leader of the Government Efficiency Initiative in the next government, has indicated that Pentagon spending and priorities will be a target for boosting efficiency, raising concern among defense heavyweights like Boeing (NYSE:) Northrop Grumman (New York Stock Exchange symbol:), Lockheed Martin (NYSE:) and General Dynamics (NYSE:).
Musk and several smaller defense technology companies agreed in criticizing legacy defense programs such as Lockheed Martin's F-35 fighter jet, while calling for mass production of cheaper AI-powered drones, missiles and submarines.
Such views have given major defense contractors greater incentive to partner with emerging defense technology players in these areas.
