Anduril Industries is seeking to raise about $4 billion from venture capital firms Thrive Capital and Andreessen Horowitz, according to sources familiar with the matter. This funding round would nearly double the defense startup's valuation from its $30.5 billion mark in June 2024. The company, founded in 2017 by Palmer Luckey, takes its name from Tolkien's Lord of the Rings.

Anduril has become one of Silicon Valley's hottest defense bets as drones reshape modern warfare in Ukraine and the Middle East. The company's Altius drone system, described as battle-ready, has been deployed to Ukraine since Russia's 2022 invasion. Luckey claimed in March 2025 that these drones have destroyed hundreds of millions of dollars worth of Russian targets.

The availability of abundant private capital has enabled companies like Anduril to raise larger funding rounds while remaining private longer, avoiding current public market volatility. However, the California-based company has faced setbacks including drone crashes and electronic warfare challenges in Ukraine, with failures described as 'isolated examples' by the company.