According to a report by the Financial Times, renowned defense technology companies Palantir and Anduril, founded by Palmer Luckey, are in talks with tech firms like SpaceX and OpenAI to form an alliance aimed at bidding for U.S. government defense contracts.
The goal of this alliance is to break the traditional monopoly of "prime" contractors in the defense sector, primarily targeting companies like Lockheed Martin, Raytheon, and Boeing. According to the U.S. Department of Defense's report for the fiscal year 2023, Lockheed Martin secured $61.4 billion in contracts, Raytheon (now known as RTX) received $24.1 billion, and Boeing was awarded $20.1 billion. In 2021, 71% of Lockheed Martin's revenue came from U.S. government contracts, while nearly 50% of Raytheon and Boeing's annual sales were also from government contracts.
Image Source Note: Image generated by AI, image licensed by Midjourney
However, it remains unclear whether this alliance of tech companies can improve the current situation. Palantir has already become the preferred supplier of AI systems for the U.S. Department of Defense, recently securing a $100 million contract to develop military AI target recognition tools, along with $480 million for expanding the Department's data analysis and decision-making tools. Palantir's technology has been involved in some controversial projects, including immigration and customs enforcement during the Trump administration, which led to many family separations. The company's technology has also played a significant role in Israel's ongoing offensive in Gaza, resulting in over 45,000 deaths.
Anduril has been described by Bloomberg as "the most controversial startup in tech," having built sensor towers along the U.S.-Mexico border to track immigrants and exploring the development of autonomous weapons. Anduril's core business is manufacturing warfare drones, but it also plans to build surveillance satellites, raising numerous ethical concerns. OpenAI recently announced a partnership with Anduril to develop counter-drone systems, which may just be the beginning of more collaborations. However, this agreement has sparked turmoil within OpenAI, with many employees reluctant to engage in defense work.
Moreover, Peter Thiel's influence is pervasive. As the founder of Palantir, a co-founder of OpenAI, a major investor in Anduril, and an early investor in SpaceX, Thiel's philosophy is often summarized as "technology advancement takes precedence, regardless of the human cost." His biographer, Max Chafkin, has stated that Thiel's power combines a disdain for democracy and institutional norms with the financial clout of a billionaire, which could lead to certain damages. Therefore, the misdeeds of traditional defense contractors seem relatively mitigated.
Key Points:
1️⃣ Tech companies like SpaceX, Palantir, and OpenAI are forming an alliance to compete for U.S. defense contracts, challenging traditional defense giants.
2️⃣ The technological applications of companies like Palantir and Anduril in the defense sector raise numerous ethical controversies, especially regarding sensitive issues like immigration and war.
3️⃣ Peter Thiel's influence permeates these companies, and his advocacy for technological advancement raises profound reflections on national security and ethics.