Anduril Just Hit $90 BILLION: Is This The Future of War?

SPEAKER_1 (0:00)

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Patrick Bet-David (0:30)

Like by the way, Palmer Luckey's company, Anduril? I don't want any Chinese nationals working for Anduril. Let's go to that company anyway. What do they make? Let's get into it. So Palmer Luckey's company, this is a guy that built Oculus, sells Oculus, worth a couple billion dollars, 32 years old, young guy, decides to start a military company building drones. And you're like, wait, what? What is this guy doing building military equipment? And he does an interview with a video showing the guys what they're building. This is a drone, this is a this, this is a that, and everybody is shell shocked that the guy's building something like this. Let me get to the story. Anduril is in talks to sell insider shares at $90 billion valuation.

Anduril Industries is allowing employees to sell shares as part of a tender that stands to value the Defense Technology Startup at roughly $90 billion. According to people familiar with the situation, the tender would be giving employees the chance to sell shares at $94.80 each with overall size of the company capped at $1.3 billion. It opened on October 13 and is set to close November 9 The representative for Anduril declined to comment on it. Anduril was founded in 2017 by the billionaire Palmer Luckey and supplies a range of AI-powered products for defense, including unmanned fighter aircraft and autonomy software surveillance tool, and augmented reality helmets for the military, which is sick what he's doing with that. That's the picture of one of the… What do we do? Let me read this. Its valuation doubled to $61 billion in May.

Funding round. The company counts the US Defense Department among its largest customers generated $2.2 billion in revenue. So, Tom, Anduril, $90 billion valuation. Is it low? Is it high? Is it a dumb move if you're able to get in there and put $100,000? Should somebody entertain it? And would you allow a Chinese national to work for a company like this?

Tom (2:24)

Three questions in order. Number one, I think this is a low valuation. This is basically a venture class valuation. And what they're doing is there's some people at the company, maybe they've been there a few years, and they want to take a little bit of money off the table. Maybe they want to try and buy a house. Maybe they want to pay off student loans, whatever it is, Pat. They want to take a little liquidity off. And so people buy the insider shares. What does that mean? Say, hey, Vinnie, you said you wanted to sell some. You've got 100,000 shares. Would you like to sell 10,000 shares at 20 bucks a share? That's 200 grand. Would you like to do that? Yeah, I'd like to do that. Okay, great. Then you go to the company that buys those, Pat. So the company doesn't get diluted. It's just an outsider that now owns some of those shares. So I think that valuation, even though in the venture world, that's usually a speculative forward valuation, I think that's a little low compared to where they're going in the technology they're showing. So that's number one. Number two, should Chinese nationals be allowed to work there? Hell no. They're working on stuff that is now up at tier one of the level of weapons that we have up there. Well, why do you want to get a hold of one of my F-35 planes? Why do you want to get a hold of a stealth fighter, even if it's at the bottom of the ocean because it crashed off San Diego? One did.

And they were trying to go down and get it. Why did the Chinese want to get it? Because you want to take it home, not copy it. You want to build defense against it. What can this do? Where do I have to go to be better? So I don't want any Chinese nationals working there. So that was your second question. And my third question that I have is just, you know, is our government moving fast enough for the high-speed venture class speed of a guy like Palmer Luckey so that we can be reaching out and encouraging them to protect what they're building for?