US defense firm Anduril considers Israel expansion, potential partnerships with local defense firms

The U.S. military technology company Anduril Industries is exploring the establishment of local operations in Israel, according to reports from the Israeli financial outlets Globes and Calcalist.

Anduril co-founder Palmer Luckey visited Israel earlier this year, meeting with executives from several Israeli defense technology startups as well as senior defense officials.

The company is reportedly seeking to enter Israel’s defense systems market, which has attracted growing international interest following Israel’s military successes in the Oct. 7 Gaza War, and several conflicts with Iran. 

According to Globes, Luckey is considering appointing former Israeli Air Force Commander Maj. Gen. (res.) Amikam Norkin to head the company’s local operations, with plans to establish both research and development and manufacturing facilities in Israel. The report also said Anduril may be evaluating potential acquisitions, including Israeli defense-tech startup Kela, which is developing a data integration system similar in concept to Anduril’s Lattice platform.

Founded in 2017, Anduril Industries focuses on integrating artificial intelligence with defense hardware to produce systems intended to reduce costs compared to traditional defense contractors.

Last week, the U.S. Air Force awarded Anduril, along with General Atomics, a production contract to develop the first fleet of semi-autonomous Collaborative Combat Aircraft (CCA) for the U.S. military. 

The company relies heavily on software-driven systems, while its hardware relies largely on readily available, off-the-shelf components in order to keep manufacturing and repair costs down.

Alongside its FQ-44 semi-autonomous fighter aircraft, Anduril develops counter-drone technology, including the Roadrunner, an autonomous vertical take-off and landing (VTOL) system. 

At the center of its product suite is the Lattice AI platform, which integrates data from sensors, drones, radars, and other inputs into a unified command-and-control system. The system allows for both autonomous and human decision-making, and can integrate equipment from other defense manufacturers.

Luckey first rose to prominence after developing the Oculus Rift virtual reality headset in 2012, which he sold to Facebook in 2014. He left the company in 2016 following controversy over his public support for Donald Trump during that year’s U.S. presidential election.

Luckey has also expressed strong support for Israel, describing himself as a “radical Zionist” in a 2025 interview on the Shawn Ryan Show, where he said, “I strongly believe in the right of Israel to exist as a Jewish state. People are like, ‘That’s so problematic, though. It’s so ethnostate adjacent.’ I said, ‘I don’t care.'”

Anduril is reportedly preparing for an initial public offering, with a valuation estimated at around $US61 billion. International expansion, including potential cooperation with or acquisitions of Israeli defense firms, could further affect its valuation.