(Reuters) – Knowledge analytics agency Palantir Applied sciences (NASDAQ:) and protection tech firm Anduril Industries are in talks with a couple of dozen rivals to kind a consortium that may collectively bid for U.S. authorities work, the Monetary Occasions reported on Sunday.
The consortium, which may announce agreements with different tech teams as early as January, is predicted to incorporate SpaceX, OpenAI, autonomous shipbuilder Saronic and synthetic intelligence information group Scale AI, the newspaper stated, citing a number of folks with data of the matter.
“We’re working collectively to supply a brand new era of defence contractors,” an individual concerned in growing the group advised the newspaper.
The consortium will deliver collectively the heft of a few of Silicon Valley’s most respected firms and can leverage their merchandise to supply a extra environment friendly approach of supplying the U.S. authorities with cutting-edge defence and weapons capabilities, the newspaper added.
Palantir, Anduril, OpenAI, Scale AI and Saronic didn’t instantly reply to a Reuters request for remark. SpaceX couldn’t be instantly reached for a remark.
Reuters reported earlier this month that President-elect Donald Trump’s deliberate U.S. authorities effectivity drive involving Elon Musk may result in extra joint tasks between large protection contractors and smaller tech companies in areas equivalent to synthetic intelligence, drones and uncrewed submarines.
Musk, who was named as a co-leader of a authorities effectivity initiative within the incoming authorities, has indicated that Pentagon spending and priorities shall be a goal of the effectivity push, spreading nervousness at protection heavyweights equivalent to Boeing (NYSE:) , Northrop Grumman (NYSE:) , Lockheed Martin (NYSE:) and Normal Dynamics (NYSE:) .
Musk and plenty of small protection tech companies have been aligned in criticizing legacy protection applications like Lockheed Martin’s F-35 fighter jet whereas calling for mass manufacturing of cheaper AI-powered drones, missiles and submarines.
Such views have given main protection contractors extra incentive to accomplice with rising protection expertise gamers in these areas.