Global conflicts have led to an especially high increase in tensions over the past few years, prompting investors to recognize the value of defense exposure in their portfolios. Taking a different approach to defense, Anduril prioritizes software over the traditional defense industry's business of building battleships, tanks, fighter jets, and the like.
The bedrock of Anduril's business is its open software platform, Lattice, which it characterizes as "an autonomous sensemaking and command & control platform that serves as the core platform for our suite of capabilities." But that's not to say the company is completely ignoring physical assets. In addition to its Lattice platform, Anduril designs and manufactures drones and solid rocket motors.
With its emphasis on autonomous systems, Anduril is particularly appealing to investors who see the massive growth opportunities of businesses specializing in artificial intelligence (AI). However, the company isn't focused solely on its AI platform.
In September 2023, Anduril completed its acquisition of Blue Force Technologies, a developer of combat-capable drones. And in May 2025, the company announced an agreement to acquire Klas, a global leader in edge computing and tactical communications.
Investors interested in fortifying their portfolios with Anduril stock have a few things to consider, including how to buy shares, when the company will hold its potential initial public offering (IPO), and alternative investment opportunities.
IPO
Is Anduril publicly traded?
As of May 2025, Anduril was a privately held company, disappointing investors looking to fortify their portfolios with its stock. While retail investors are out of luck, the company has drawn ample attention from several venture capital firms, such as Andreessen Horowitz and Valor Equity Partners, which have both participated in Anduril funding rounds.
When will Anduril IPO?
Buying IPO stocks offers rare investment opportunities for people willing to accept a fair amount of risk. And while several companies are planning to go public in 2025, it's highly unlikely that Anduril will find itself on the IPO calendar anytime soon.
Speaking with defense industry news website Breaking Defense, Palmer Luckey, a co-founder of Anduril Industries, said in September 2023 that while he was interested in holding an IPO, he didn't have a specific time frame. Luckey suggested it was more reasonable to consider 2026 as a possible year for the company to hit the public markets.
In February 2025, speculation arose that Anduril, which was considering a $28 billion valuation, was interested in raising additional capital by holding a Series G funding round.
In April 2024, Lockheed Martin announced it had received an award of up to $4.1 billion from the U.S. government's Missile Defense Agency to advance the Command, Control, Battle Management, and Communications (C2BMC) system. The C2BMC system uses AI and machine learning (ML) to "improve the ability to detect, track, target, engage and assess emerging threats," according to the company.
2. Northrop Grumman
Like Lockheed Martin, Northrop Grumman (NOC +1.55%) is a major defense contractor that produces assets used on land, in the air, and at sea, as well as resources used in cyberwarfare. Working to provide its customers an edge on the frontlines, the company is embedding AI in numerous ways.
In collaboration with Palantir (NYSE:PLTR), Northrop Grumman announced in March 2024 that it's developing the Tactical Intelligence Targeting Access Node (TITAN) ground system for the U.S. Army. Leveraging the power of AI and ML, TITAN will use intelligence data from sensors to provide advanced targeting information.
Northrop Grumman is also exploring AI for operations conducted in the wild blue yonder. In 2022, the Defense Advanced Research Projects Agency awarded Northrop Grumman a contract to develop a prototype AI assistant to assist pilots in performing various in-flight tasks.
3. Kratos Defense & Security Solutions
Investors attracted to Anduril's drone exposure may find Kratos Defense & Security Solutions (KTOS +5.96%) more appealing. In addition to land-based drones, Kratos offers uncrewed systems that operate in the air and at sea. The company's offerings also include space-based systems, training systems, and missile defense, among others.
Demonstrating its commitment to AI, Kratos is partnering with Shield AI, a company that has developed an AI pilot. In April 2024, the two companies announced a successful test flight of the AI pilot on the Kratos Tactical Firejet. This achievement has motivated the two companies to collaborate on expanding the potential use of the AI pilot in the Kratos Valkyrie, a stealth, uncrewed tactical drone.
Accredited investors may access platforms that provide them an opportunity to buy pre-IPO stocks. However, retail investors who aren't accredited and find themselves interested in buying shares of one of these stocks only have to take a few simple steps to become shareholders:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
The bottom line on Anduril
With global tensions showing little sign of ebbing, investors recognize the value of positions in leading defense companies like Anduril. But it will be some time before the company holds an IPO and gives them the opportunity to invest in it.
Even so, stocks that offer similar exposure to the defense industry -- stocks like Lockheed Martin, Northrop Grumman, and Kratos Defense & Security Solutions -- are available on the public markets right now. Additionally, investors interested in broader exposure to companies like Anduril may consider ETFs that hold companies focused on AI and defense.
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