Defense tech company Anduril is said to be raising a new round of capital that may push its valuation up by a whopping $40 billion to about $100 billion, Reuters reported, citing anonymous sources.

The company, which raised $5 billion in May at a $61 billion valuation — itself roughly double the $30.5 billion valuation it landed in its June 2025 Series G round — may be structuring the fundraise as a two-stage process, with the second stage bringing in investors at a higher valuation. Both tranches could be closed within the year, Reuters reported.

The news comes as the defense tech industry experiences an unprecedented revival, spurred by demand for drones, autonomous craft, and AI’s role in warfare, as war rages both in the Middle East and Eastern Europe. In the first six months of the year, the sector saw venture funding more than double to over $12 billion, eclipsing the nearly $10 billion that startups in the space raised in all of 2025.

Anduril has benefited from this demand, signing contracts with the U.S. Department of Defense, Air Force, and Army; the Dutch Ministry of Defence; NATO; the U.K. Ministry of Defence; Poland; and more.

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

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

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

Separately, both Mach and Anduril have also moved to secure their own propulsion supply. 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 cuts across the low-cost-weapons trend.

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

“No decisions have been made about any future financing, and anyone claiming knowledge of its terms, structure, pricing, or timing is speculating or misinformed. As a private company, we regularly evaluate opportunities to fund the growth of the business,” Anduril said in an emailed statement.

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