Australia Fast-Tracks Anduril’s Ghost Shark While U.S. Navy Lags Behind

Australia, in partnership with defense tech startup Anduril, is achieving what the U.S. Navy has long struggled to deliver: rapidly bringing an extra-large autonomous undersea vehicle (XLUUV) into active service. The country will soon begin deploying the “Ghost Shark” fleet after securing a substantial AUS$1.7 billion (US$1.1 billion) contract with Anduril, marking a pivotal moment for defense procurement and startup-driven innovation.

Australia’s Rapid Defense Innovation

Unlike traditional multiyear government contracting that often stalls innovation, Australia’s five-year deal locks in recurring revenue for Anduril and marks the Ghost Shark platform as a “program of record” in the nation’s defense budget. The vehicle is designed for long-range, stealth surveillance, and strike operations, with the contract also covering ongoing development and maintenance.

This urgency is a direct response to Australia’s evolving security challenges in the Indo-Pacific region, especially amid increasing tensions with China. According to Chris Brose, President of Anduril, Australia’s ability to deliver results quickly—despite limited resources and similar bureaucratic hurdles to the U.S.—shows what’s possible with decisive will and clear strategic focus.

Comparing Approaches: United States vs. Australia

While Boeing’s Orca XLUUV project for the U.S. Navy faces years of delays, Anduril and Australia began co-developing and co-funding Ghost Shark in 2022. Both parties committed $50 million, delivered the first prototype in April 2024 (a full year ahead of schedule), and have already started production. This speed stands in stark contrast to U.S. legacy procurement, which has seen higher spending but slower progress.

Pioneering a New Model of Procurement

This program highlights a new approach where startups share risk, moving early to validate and deliver new capabilities. Anduril’s willingness to invest its own capital helped de-risk Australia’s rapid procurement schedule, reducing both technological and bureaucratic barriers.

As part of Anduril’s global vision, the company has developed Ghost Shark to be easily adapted to various defense payloads, allowing governments worldwide to tailor the platform to their specific mission needs. In addition, Anduril is testing a U.S.-optimized payload off California’s coast and has established a large factory in Rhode Island in anticipation of potential domestic contracts.

Geopolitical Drivers & Market Impact

The rush to field Ghost Shark is also fueled by Australia’s geographic realities. As the world’s largest island nation, it faces proximity to emerging adversaries like China, which continues to expand naval activities throughout the Pacific. Ghost Shark offers a rapid, stealthy solution—a compelling case study for small nations with strategic needs that outpace their resources.

Deep Founder Analysis

Why it matters

The Ghost Shark program signals a shift in defense technology—demonstrating that agile, venture-backed startups can outpace established contractors and big governments on cost, timeline, and adaptability. This challenges the long-held assumption that only massive enterprises or nations can develop disruptive defense tech. For founders, it showcases the growing viability and impact of dual-use technology startups across highly regulated, traditionally slow-moving sectors.

Risks & opportunities

One substantial risk: startups in national security face complex regulatory compliance, export controls, and the reality that government clients may pull out due to political changes. However, for the few that succeed, the prize is large, recurring contracts and potential to expand globally as governments seek innovative and adaptable capabilities. Anduril’s model—co-investment, rapid iteration, and modular product strategy—could inspire new waves of public-private partnership. Historically, companies like Palantir and SpaceX have set similar precedents, creating eventually massive commercial businesses from government roots.

Startup idea or application

Inspired by Anduril’s rapid delivery, a startup could develop modular hardware/software platforms for undersea or aerial autonomy adaptable to allied nations’ specific security needs. This could include plug-and-play mission modules for surveillance, logistics, environmental monitoring, or disaster response. By offering a validated, “mission-ready” baseline system, startups could help other countries accelerate adoption of autonomous tech—in defense, coast guard, or scientific contexts—without prohibitive R&D cycles.

Defense Tech Startups Autonomous Vehicles Australia Procurement

For more on how startups are working with governments, see our analysis of Anthropic’s support of AI policy and how to stand out pitching defense and frontier tech VCs.

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