Defense technology company Anduril is said to be raising a new round of capital that may increase its valuation to between $40 billion and about $100 billion, Reuters reported, citing unnamed sources.

The company, which raised $5 billion in May at a valuation of $61 billion (roughly double the $30.5 billion valuation it garnered in its June 2025 Series G round), may be structuring the fundraising as a two-stage process, with the second stage attracting investors at a higher valuation. Both stretches could be closed within a year, Reuters reported.

The news comes as the defense technology industry experiences an unprecedented resurgence, driven by demand for drones, autonomous ships and the role of AI in warfare, as war rages in both the Middle East and Eastern Europe. In the first six months of the year, venture funding in the sector more than doubled to more than $12 billion, dwarfing the nearly $10 billion that startups in the sector raised in all of 2025.

Anduril has benefited from this demand, signing contracts with the Department of Defense, the Air Force and the United States Army; the Dutch Ministry of Defense; NATO; the United Kingdom Ministry of Defense; Poland; and more.

The company said in May that it had more than doubled its revenue to $2.2 billion in 2025 compared to the previous year.

Other startups have also cashed in: Military aircraft maker Shield AI raised $1.5 billion in March, Mach Industries quadrupled its valuation to $1.8 billion last month, and Europe’s Helsing this month raised $1.8 billion at a valuation of $18 billion.

A common thread in these deals is a shift toward cheaper, expendable hardware, often called “attributable” systems, rather than the expensive-to-replace equipment that has defined defense contracts for decades. Mach CEO Ethan Thornton has said the startup is designing systems for the current era of warfare at a significantly lower cost than traditional defense contractors, citing Ukraine’s use of autonomous drones as a model.

Separately, both Mach and Anduril have also taken steps to secure their own propulsion supplies. Mach acquired solid rocket motor maker Exquadrum for $50 million in May, while the Pentagon has funded Anduril’s efforts to expand domestic solid rocket motor manufacturing capacity, moves aimed at a supply bottleneck that predates and runs through the low-cost weapons trend.

Anduril investors include Thrive Capital, Andreessen Horowitz, Founders Fund, ICONIQ, Flux Capital, Greycroft, Altimeter, 1789 Capital and current US Vice President JD Vance, according to PitchBook.

“No decisions have been made regarding future financing, and anyone claiming to know its terms, structure, pricing or timeline is speculating or misinformed. As a private company, we periodically evaluate opportunities to fund business growth,” Anduril said in an emailed statement.

Note: This story was updated to add Anduril’s comment.