Defense tech firm Anduril is in discussions with investors for a new funding round that could see it valued at roughly $100 billion, rivaling companies such as Northrop Grumman and Lockheed Martin, two sources familiar with the matter told Reuters.

The funding round and the valuations, reported here for the first time, are still fluid, the sources said.

One idea that had been floated was for the company to use a two-stage process, where investors would need to commit to financing a second round at a higher valuation that could occur within a year, the sources said. The valuation for the second funding round could involve Anduril meeting certain financial benchmarks, they said.

Reuters could not determine how much Anduril planned to raise.

In a statement, a spokesperson for Anduril said no decisions had been made about any future financing.

“As a private company, we regularly evaluate opportunities to fund the growth of the business,” the spokesperson said.

The talks come as the company has posted booming military sales and generated investor enthusiasm around its suite of drones, software and missiles amid the U.S. conflict with Iran.

Just two months ago, the company doubled its valuation to $61 billion in a $5 billion funding round led by Thrive Capital and Andreessen Horowitz.

The discussions also underscore how fast-growing startups are increasingly wielding market power and demanding highly unusual concessions from investors.

Before going public in June, SpaceX, for example, imposed unusual conditions on investors in its private fundraising rounds, including extensive vetting and limited financial disclosures.

The potential valuation would make California-based Anduril nearly as valuable as Lockheed Martin, one of the world’s largest defense conglomerates and maker of several of the Pentagon’s priciest fighter jets, including the F-22, F-15 and F-35. Lockheed is valued at $130 billion.

Led by founder Palmer Luckey, Anduril has been announcing new military weapons and drones at a rapid pace. The company said in January it had reported $2.2 billion in revenue in 2025, and doubled its workforce.

Earlier this week, the company announced a new vertical-takeoff-and-landing drone called Thunder at the Farnborough Air Show in England, which it hopes will fly alongside military helicopter units.