Anduril’s $1.5 Billion Deal Underscores VC Zeal for Defense Tech

Anduril Industries Inc. is in talks with Peter Thiel’s Founders Fund and other investors to raise $1.5 billion, according to people familiar with the matter, in what would be one of the year’s largest funding rounds not exclusively focused on artificial intelligence.

Investors were anxious to put money into the round, according to the people, who asked not to be identified discussing private information. There was $5 billion worth of demand from investors for the deal, said some of the people, but the company chose to take a smaller sum.

The deal would value the startup, co-founded seven years ago ...