The U.S. Military mentioned late Friday that it has signed a 10-year contract with protection tech startup Anduril. The deal may very well be value as much as $20 billion.

Based on the announcement, the contract begins with a five-year “base interval,” with the choice to increase the deal for an extra 5 years, and it contains Anduril {hardware}, software program, infrastructure, and companies.

The Military describes the settlement as a single enterprise contract consolidating what had been “greater than 120 separate procurement actions for Anduril’s business options.” 

“The fashionable battlefield is more and more outlined by software program,” mentioned Gabe Chiulli, the chief expertise officer on the Division of Protection’s Workplace of the Chief Info Officer, in a press release. “To take care of our benefit, we should have the ability to purchase and deploy software program capabilities with pace and effectivity,”

Anduril was co-founded by Palmer Luckey, who was beforehand identified for promoting VR startup Oculus to Fb (now Meta). Facebook fired Luckey after controversy erupted following a information report that he’d donated to a pro-Trump political group.

Luckey has repeatedly insisted that the media misrepresented his political beliefs, however based on a recent feature in The New York Times, Luckey and Anduril have been embraced by the second Trump administration, because of his imaginative and prescient for remaking the U.S. navy with autonomous fighter jets, drones, submarines, and extra. The corporate (named, like Palantir, for a magical object in “The Lord of the Rings”) introduced in round $2 billion in income final yr, the NYT says.

Separate studies recommend that Anduril is in talks to raise a new funding round at a $60 billion valuation. 

This announcement additionally comes because the Division of Protection is locked in a dispute with Anthropic, with the AI company suing the DoD over its designation as a provide chain menace following a failed contract negotiation, whereas OpenAI has confronted consumer backlash and at least one executive departure after signing a Pentagon deal of its personal.