Defense Innovation at an Inflection Point

The Rise of New Primes like Anduril and the Changing Military-Tech Ecosystem

Abstract

Few periods in modern history rival the current pace of technological transformation witnessed by the defense sector. Over the past few years, the United States Department of Defense (DoD), along with allied militaries worldwide, has grappled with rapid shifts in the global security environment. From the use of drones in Ukraine and the Middle East to advanced naval threats in the Indo-Pacific, the urgency to develop flexible, cost-effective, and AI-driven solutions is clear. Traditional defense contractors—such as Lockheed Martin, Boeing, and Raytheon—still command the lion’s share of government budgets, but a fresh cohort of “new-prime” or “disruptor” startups is beginning to prove their mettle.

Anduril Industries, founded in 2017, epitomizes this emergent wave[1]. With a software-centric approach, private venture capital funding, and a willingness to build prototypes before official government solicitations, the company has rapidly expanded. Yet, Anduril’s achievements are neither isolated nor monolithic. A broader reconfiguration of the defense-industrial landscape is unfolding—one that includes Palantir, Epirus, Scale AI, and more, all seeking to reimagine how advanced technologies integrate with large-scale military programs.

In this essay, we delve into the intersection of high-tech autonomy, software-driven development, and contemporary defense imperatives. While Anduril figures prominently—given its multi-billion-dollar valuation and major contracts—this narrative extends beyond one company. It is a story about how militaries are rapidly adapting to new paradigms, the challenges (and controversies) that come with disruptive innovation, and the future trajectory of a sector once characterized by big, slow, and expensive platforms.