Reuters, citing sources familiar with the matter, reported that defense technology company Anduril is in talks for a new round of funding, which could value the company at around $100 billion. This figure represents a further increase from its $61 billion funding round in May, indicating that the capital market continues to invest heavily in the defense technology sector.

Financing may be completed in two steps

Reports indicate that this funding round may be structured in two phases. The second phase may involve investors paying higher prices, and both transactions could be completed this year. Anduril just completed a $5 billion funding round in May of this year, valuing the company at $61 billion; going back further, the company's Series G funding round in June 2025 valued it at $30.5 billion.

If the new round of funding proceeds as reported, Anduril's valuation will rise significantly over the next year. Reuters reports that the company has not yet immediately responded to requests for comment.

War demand drives up the popularity of the track

The surge in defense technology funding is directly related to the ongoing conflicts in the Middle East and Eastern Europe. The rising demand for drones, autonomous aircraft, and AI on the battlefield is changing the flow of capital in this industry.

According to reports, venture capital investment in the defense technology sector exceeded $12 billion in the first half of this year, more than double that of the same period last year, and also higher than the nearly $10 billion in funding expected for the entire sector in 2025.

Anduril is one of the main beneficiaries of this surge in revenue. The company has signed contracts with the U.S. Department of Defense, the U.S. Air Force and Army, the Dutch Ministry of Defence, NATO, the UK Ministry of Defence, and Poland, among others. In May of this year, the company also stated that it expects its revenue to more than double year-on-year to reach $2.2 billion by 2025.

Low-cost weapons become the focus of investment

Besides Anduril, several other defense technology companies have also recently completed large-scale financing rounds. Military aircraft manufacturer Shield AI raised $1.5 billion in March; Mach Industries' valuation rose to $1.8 billion last month, quadrupling from its previous level; and European defense technology company Helsing raised $1.8 billion this month at a valuation of $18 billion.

These deals share a common thread: the market values lower-cost, rapidly replenishable equipment over traditional, expensive, and slow-to-replace equipment from the past defense contracting system. Mach CEO Ethan Thornton previously stated that the company is designing lower-cost systems for current warfare and uses Ukraine's use of autonomous drones as a real-world example.

On the supply chain front, propulsion systems have also become a key area of competition within the industry. In May, Mach acquired solid rocket engine manufacturer Exquadrum for $50 million. Meanwhile, the Pentagon is also funding Anduril to expand its domestic solid rocket engine production capacity in the United States to alleviate long-standing supply bottlenecks.

From capital and orders to production capacity, defense technology companies are simultaneously vying for valuations and manufacturing capabilities. If Anduril's latest funding round is completed, it could further drive up the pricing levels of global defense technology companies.