US Defence Startup Anduril Eyes Israeli Expansion, Opens Advanced Weapons Hub

The global defence industry is being shaken up by a move from American military technology giant Anduril. The world’s largest defence startup is reportedly exploring an aggressive expansion to establish a foothold in Israel. According to Israeli media outlet Calcalist, Anduril is in intensive negotiations to recruit a local manager. This strategic role is intended to bridge relationships with local Israeli startups and scout for tactical partnership opportunities. In recent weeks, Anduril management has reportedly held secret meetings with several potential candidates. These candidates boast impressive backgrounds, including former senior officials from Elbit Systems and the Directorate of Defence Research and Development (DDR&D) under Israel’s Ministry of Defence. Anduril is also seriously considering establishing an integrated research and development (R&D) centre in Israel and recruiting local talent to strengthen its operational edge in the country. Known as the mastermind behind unmanned aerial systems (drones), autonomous platforms, and modern robotics, Anduril is riding a wave of success. Last month, the company secured US$5 billion in fresh funding, boosting its valuation to US$61 billion. The funding round was led by legendary Silicon Valley venture capital firm Andreessen Horowitz and Thrive Capital, the investment firm owned by Josh Kushner, brother of former US President Donald Trump’s son-in-law, Jared Kushner. Founded in 2017 by Palmer Luckey, the young genius who previously sold virtual reality company Oculus VR to Facebook for US$2 billion in 2014, Anduril now rivals Palantir Technologies. It is one of the few tech startups to break the dominance of legacy players and become a primary supplier in the Pentagon and Western allies’ military supply chain. Its financial performance is robust, with revenue reaching US$2.2 billion in 2025 and a global workforce of approximately 7,000 employees. This expansion plan appears to be a continuation of Palmer Luckey’s business trip last February. Luckey, who has openly labelled himself a ‘radical Zionist’, made a special visit to Israel initiated by Josh Wolfe, founder of Lux Capital and an early investor in Anduril. During the trip, Luckey met directly with Israeli Prime Minister Benjamin Netanyahu. Through the DDR&D network, he was also introduced to the inner workings of Israel’s defence technology startup ecosystem. He met with ten top-tier Israeli military startups, including Smart Shooter, which is listed on the Tel Aviv Stock Exchange, as well as others like Kela, Oz, Skana Robotics, Regulus, Magnus Metal, eyesAtop, and AriEV. Anduril has reportedly already signed a component supply contract for drones with Israeli company ASIO. Furthermore, its investment radar is now targeting LiteVision, a drone camera specialist in the Kinetica portfolio backed by 8VC, an early investor in Palantir. Kinetica Chairman Yitz Applbaum assessed that a physical Anduril presence in Israel is only a matter of time due to the highly compatible industry dynamics. ‘Israel is the most logical place for Anduril,’ Applbaum stated. He noted that Anduril’s interest goes beyond portfolio investment, encompassing corporate acquisition strategies and a long-term plan to directly sell their weapons innovations to the Israeli defence industry and the Israel Defence Forces (IDF).