The Blubber

(Reuters) - Palantir Technologies, a data analytics firm, and Anduril Industries, a defense tech company, are in discussions with about a dozen competitors to form a consortium aimed at jointly bidding for U.S. government contracts, the Financial Times reported on Sunday.

The consortium, which could announce agreements with other tech companies as soon as January, is expected to include major players such as SpaceX, OpenAI, autonomous shipbuilder Saronic, and artificial intelligence data firm Scale AI, according to several sources familiar with the matter cited by the newspaper.

"We are collaborating to create a new generation of defense contractors," a person involved in the formation of the group told the Financial Times.

The coalition aims to unite the strengths of some of Silicon Valley's most innovative companies, leveraging their advanced technologies to deliver a more efficient and cutting-edge approach to supplying the U.S. government with defense and weapons capabilities, the report added.

Palantir, Anduril, OpenAI, Scale AI, and Saronic did not immediately respond to Reuters' requests for comment. SpaceX was not immediately available for comment.

Earlier this month, Reuters reported that an initiative by President-elect Donald Trump to improve U.S. government efficiency—led in part by Elon Musk—could pave the way for more collaborations between major defense contractors and smaller tech firms in areas such as artificial intelligence, drones, and uncrewed submarines.

As a co-leader of the government efficiency program, Musk has signaled that Pentagon spending and priorities will come under scrutiny, raising concerns among defense industry giants such as Boeing, Northrop Grumman, Lockheed Martin, and General Dynamics.

Musk and many smaller defense technology companies have been vocal critics of traditional defense programs, such as Lockheed Martin's F-35 fighter jet, advocating instead for the large-scale production of less costly AI-powered drones, missiles, and submarines.

These critiques have incentivized established defense contractors to seek partnerships with emerging tech players specializing in cutting-edge defense technologies.