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The US defence industry is braced for a shake-up under Trump that could favour smaller contractors and defence-technology groups like Palantir and Anduril, says the FT.
Pete Hegseth, nominee for defense secretary, has criticised the Pentagon for being “too insular” and trying to “block new technologies”, while praising Silicon Valley.
Well-established defence companies like Lockheed Martin, Northrop Gunman and General Dynamics have seen their share prices slump since Trump’s election win.
Lockheed’s F-35 programme, the largest in the world, looks in particular trouble given Elon Musk’s criticism of the stealth aircraft in posts on X.
The close relationship between JD Vance, Trump’s VP, and Peter Thiel, the co-founder of Palantir, may also impact the new administration’s approach to Pentagon procurement.
Last October Palantir published a “treatise” on changing the status quo titled “The Defense Reformation”.
