According to reports, Data analytics firm Palantir Technologies and defense tech company Anduril Industries are in talks with about a dozen competitors to form a consortium that will jointly bid for U.S. government work.

The alliance is anticipated to include SpaceX, OpenAI, autonomous shipbuilder Saronic, and artificial intelligence data provider Scale AI. Agreements with other tech groups might be announced as early as January.

In order to offer the U.S. government with advanced defence and weaponry capabilities more effectively, the consortium will combine the strength of some of Silicon Valley's most valuable businesses and use their goods.

More collaboration between large defence contractors and smaller tech companies in fields like artificial intelligence, drones, and uncrewed submarines may result from President-elect Donald Trump's proposed U.S. government efficiency drive, which includes Elon Musk.

Musk has raised concerns at defense giants like Boeing, Northrop Grumman, Lockheed Martin, and General Dynamics by indicating that Pentagon spending and priorities will be the focus of the efficiency push. Musk was named a co-leader of a government efficiency initiative in the incoming administration.

Musk has joined forces with numerous small defense tech companies to criticize legacy defense programs, including Lockheed Martin's F-35 fighter plane, and to advocate for the mass manufacture of less expensive AI-powered drones, missiles, and submarines.

Major defence contractors now have greater motivation to collaborate with up-and-coming defence technology companies in various fields as a result of these viewpoints.