Anduril, the world’s largest and most closely watched defense startup, has begun exploring the possibility of establishing operations in Israel. According to information obtained by Calcalist, the company is currently in talks to recruit a local manager who would be tasked with building relationships with Israeli startups and identifying partnership opportunities. To that end, meetings have been held in recent weeks with potential candidates from Elbit Systems and the Directorate of Defense Research and Development at Israel’s Ministry of Defense (DDR&D).
At the same time, Anduril is also examining the possibility of establishing a development operation in Israel and recruiting local employees.
Anduril, which develops unmanned aerial systems, autonomous platforms, and military robotics, raised $5 billion last month at a valuation of $61 billion. The funding round was led by venture capital giant Andreessen Horowitz and Thrive Capital, the investment firm founded by Josh Kushner, brother of Jared Kushner.
The company was founded in 2017 by Palmer Luckey, a colorful and unconventional entrepreneur who was still in his twenties at the time. Before founding Anduril, Luckey sold virtual reality company Oculus VR to Facebook for $2 billion in 2014.
Anduril is considered one of the few companies, alongside Palantir Technologies, that successfully evolved from a startup into a major supplier to the U.S. defense establishment and allied governments. In 2025, the company generated $2.2 billion in revenue and employed approximately 7,000 people, a dramatic increase from the roughly 90 employees it had in 2019. Its previous funding round, completed just a year earlier, valued the company at $30 billion.
In February, Luckey, who has previously described himself as a “radical Zionist,” visited Israel. The trip, organized by Josh Wolfe, founder of venture capital firm Lux Capital and one of Anduril’s earliest investors, included a meeting with Israeli Prime Minister Benjamin Netanyahu.
During the visit, Luckey was also introduced to Israel’s defense-tech startup ecosystem through DDR&D, which arranged meetings with 10 Israeli defense startups, including Smart Shooter, which has since gone public on the Tel Aviv Stock Exchange, as well as Kela, Oz, Skana Robotics, Regulus, Magnus Metal, eyesAtop and AriEV.
Anduril has already signed agreements with several Israeli companies, including ASIO, which is expected to supply components for the company’s unmanned aerial systems.
In addition, Anduril has expressed interest in security startup LiteVision, a portfolio company of venture capital firm Kinetica. The startup develops camera systems for drones and has already received investment from venture capital firm 8VC, an early investor in Palantir that also backs Anduril.
“Israel is the most logical place for Anduril to be,” said Yitz Applbaum, chairman of Kinetica. “The meetings they held in Israel generated significant interest on their side. They are interested in investing in startups here, acquiring companies, and potentially, down the road, selling to Israel’s defense industry and the IDF.”