COSTA MESA, CA — Anduril Industries, the defense technology company rapidly expanding its footprint in Ohio and beyond, has secured a $99 million contract with the U.S. Air Force for Phase III of the Thunderdome Small Business Innovation Research (SBIR) initiative. The contract, overseen by AFWERX, the Air Force’s innovation arm based in Dayton, Ohio, focuses on rapid prototyping projects using Anduril’s Lattice core software capability. The U.S. Air Force's Thunderdome Small Business Innovation Research (SBIR) initiative is a program designed to foster innovation by engaging small businesses in federal research and development. Phase III of this initiative focuses on transitioning technologies developed in earlier phases into operational use. Unlike Phases I and II, which are funded by SBIR allocations, Phase III projects are financed through other sources, aiming to commercialize the innovations for the Air Force and the broader market. Notably, once a company has received a Phase I or II award, it becomes eligible for sole-source Phase III contracts, as the initial competition requirements have been satisfied.
Work will be conducted in Costa Mesa, California, and is expected to run through February 13, 2030. An initial $8.4 million from fiscal year 2024 research, development, testing, and evaluation funds has already been allocated.
This latest deal comes amid Anduril’s aggressive expansion into AI-driven military technology, with its Lattice Mesh network serving as a decentralized data-sharing system that enhances connectivity across military services, domains, and platforms. The network ensures critical data access even in contested environments, a key component of modern warfare.
A Track Record of Defense Deals
This is not the first time the Air Force has turned to Anduril. In October 2023, the company secured two contracts totaling $8 million aimed at boosting AFWERX’s autonomy capabilities, including enhancements to its Ghost uncrewed aircraft system, which operates on the Lattice platform.
More recently, in December 2024, the Department of Defense’s Chief Digital and AI Office awarded Anduril a $100 million contract to further expand the Lattice Mesh system. The goal? To decentralize data sharing on the battlefield, eliminating reliance on vulnerable centralized processing hubs.
Global Partnerships and Expansion
Anduril isn’t just securing U.S. military contracts—it’s making global moves. In a recently announced partnership, the company is teaming up with India’s Mahindra Group to co-develop and co-produce advanced AI-enabled counter-drone (CUAS) technologies and autonomous maritime systems.
The collaboration includes:
- Modular autonomous underwater vehicles (AUVs) for security, surveillance, survey, and reconnaissance missions.
- AI-powered CUAS technology capable of detecting and neutralizing aerial threats.
- A next-generation sensor fusion platform designed to integrate multiple sensor technologies for real-time situational awareness.
Mahindra Group’s Vinod Sahay hailed the deal as a major step in advancing global security technologies, while Anduril’s Greg Kausner emphasized the growing importance of autonomy in modern defense strategies.
What’s Next for Anduril in Ohio?
With its Arsenal-1 AI/drone warfare complex planned for Ohio, Anduril’s presence in the Buckeye State continues to grow. The $99 million Air Force contract signals that Anduril is firmly embedded in the U.S. military-industrial complex, with its technologies playing a central role in the future of automated warfare.
However, with hundreds of millions in government funding flowing into the company, questions remain about the long-term implications of privatized AI-driven defense technology.
For now, one thing is clear—Anduril is becoming an unstoppable force in military AI, and Ohio is at the heart of it.
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