The drone startup that's now building a shipyard
In one week, Anduril got up to $1.8 billion to run the Army's battlefield data network and a $6.6 billion shipyard plan for submarine parts.
What happened
The Navy gave Anduril a deal worth up to $2.9 billion, and Anduril will put in $3.7 billion of its own money, to build 'Arsenal-2', a shipyard near Baltimore making parts for Virginia-class submarines. Work is meant to start around 2030.
Days earlier, the Army gave Anduril a five-year deal worth up to $1.8 billion to spread its NGC2 C2 system, built on its Lattice software, to more units, starting with the Pacific-focused I Corps. The first part is worth $162.8 million.
Please note
Heavy shipbuilding has long belonged to General Dynamics and HII. And the Army's data layer is ground Palantir also wants. A company best known for drones is walking into both rooms at once.
What it means
New defense companies aren't just making gadgets any more. They're building factories and running the software that decides who sees what on the battlefield.
The money behind them is real. Defense and defense-related startups raised $35.6 billion in the first half of 2026, about 40% more than a year earlier, including a $5 billion round for Anduril.
What we don't know yet
- Whether Arsenal-2 opens on time around 2030.
- How General Dynamics and HII talk about it on their October results calls.
Note this down
Oct 29–30: listen to HII and General Dynamics results for comments on Anduril.