Meta Platforms (META) is teaming up with defense technology company Anduril Industries to make advanced products for the U.S. military. This deal will join Meta’s expertise in virtual and augmented reality (XR) with Anduril’s defense tech skills, with an initial focus on an AI-powered helmet.
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The partnership aims to create XR products to help soldiers see better and control smart machines on the battlefield. Notably, Anduril’s co-founder, Palmer Luckey, also co-founded Oculus VR, the virtual reality company acquired by Meta in 2014.
One of the expected products is a new military helmet called “Eagle Eye.” Luckey described this helmet as a long-awaited technology, noting that recent progress has made this type of gear possible.
Meta’s partnership with Anduril marks the tech giant’s first major move into the defense sector. Previously, Meta had restricted military applications of its AI models. But in November 2024, it updated its policies to allow U.S. defense contractors like Lockheed Martin (LMT), Booz Allen Hamilton (BAH), and Palantir (PLTR) use its large language AI models.
Is Meta’s Anduril Deal a Threat to Palantir?
Meta’s partnership with Anduril to develop AI-powered mixed reality gear for military use could position it as a rival to Palantir in the defense tech space. Anduril’s Lattice platform, which combines battlefield data for real-time decision-making, overlaps with Palantir’s AI analytics used in government and military operations.
However, Palantir maintains strong presence in government intelligence and defense contracts, while Meta’s focus is more on hardware and augmented reality. The deal signals Meta’s expansion into defense AI, but it’s unclear if it will directly compete with Palantir in security data analytics.
Is Meta a Good Stock to Buy Now?
Turning to Wall Street, META stock has a Strong Buy consensus rating based on 41 Buys, three Holds, and one Sell assigned in the last three months. At $696.12, the average Meta stock price target implies a 7.92% upside potential.
