Trump’s defence-tech boom: How Anduril, Palantir and other AI firms are cashing in

US President Donald Trump

Buried in Donald Trump’s massive tax and spending package is a provision that quietly unlocks nearly $300 billion for the modernization of America’s military, homeland security, and defence infrastructure. This includes $6 billion set aside for border surveillance systems, which Anduril, an AI defence start-up co-founded by Palmer Luckey, is uniquely positioned to supply. Currently, Anduril is the only approved provider of autonomous surveillance towers used by US Customs and Border Protection, the Financial Times reported.

Anduril’s monopoly and Palantir’s government windfall

Anduril’s position as the sole vendor for border towers gives it a near-guaranteed share of new federal spending. Its backer, Peter Thiel, is also behind Palantir, another firm set to benefit. Palantir recently secured a $30 million contract to help build an “ImmigrationOS” platform for ICE and is now consolidated under a new $10 billion US Army contract. Palantir’s Q2 2025 earnings revealed a nearly 50% jump in revenue, largely from government clients.

Trump’s Golden Dome fuels a new arms race

On top of the spending package, Trump’s ambitious “Golden Dome” missile defence initiative promises at least $150 billion more for sensors, satellites, and AI defence systems. This has triggered a rush from Silicon Valley start-ups and traditional contractors alike, eager to capture a slice of this new arms race. Companies like Palantir, SpaceX, and Anduril are already shaping this evolving national security landscape.

A revolving door between tech and Trump’s government

The close ties between defence start-ups and the Trump administration are growing more visible. Palantir’s former head of intelligence, Gregory Barbaccia, now serves as the federal chief information officer. Anduril board member Michael Obadal has been nominated to the Army’s second-highest civilian post. These appointments reflect a deeper integration of the private tech sector with government operations, especially in national security and military modernization.

Family ties and stock holdings raise ethical concerns

Several members of Trump’s administration hold financial stakes in these defence firms. Stephen Miller, the deputy chief of staff, owns at least $100,000 in Palantir stock through his child’s account. Trump’s son, Donald Trump Jr., is part of 1789 Capital, which invested early in Anduril and Thiel-backed firms. While a White House official said Miller has recused himself from related decisions, these financial links have raised questions about conflicts of interest.

Start-ups pivot to ‘dual use’ amid AI gold rush

As Washington accelerates defence tech procurement, start-ups like Regent—makers of seaglider vessels—are moving toward dual-use models, serving both military and commercial markets. At the recent Reindustrialize conference in Detroit, founders, investors, and military officials gathered to discuss fast-tracking innovation. The Trump administration’s promises of lower taxes, streamlined contracts, and AI-driven defence have drawn hundreds of tech entrepreneurs into the sector.

Private capital surges into defence and AI

Venture capital is chasing the government’s chequebook. Booz Allen Hamilton tripled its defence-tech investment pool to $300 million in July and plans 25 new investments over the next five years. Analysts point to China’s successful integration of state and private sector defence tech as a model the US is now starting to emulate. As geopolitical tensions rise, investors see defence AI as the next major growth sector in American tech.