Hadrian Secures $260 Million to Expand AI-Powered Defense Manufacturing

Startup Hadrian raises $260 million to expand its AI-powered factories to meet soaring demand

Morgan Brennan sits down with Hadrian founder and CEO Chris Power to discuss the startup's $260 million Series C round led by Founders Fund and Lux, as well as a factory expansion line led by Morgan Stanley. Morgan and Chris explore how Hadrian is leveraging AI and automation to modernize U.S. manufacturing, support the defense industrial base, skill workers rapidly, and compete with China's industrial dominance. Amid the focus on reshoring manufacturing and reindustrializing the U.S., Hadrian's revenue grew tenfold last year.

Hadrian gets $260M in funding to accelerate defense industry manufacturing automation - SiliconANGLE

Hadrian gets $260M in funding to accelerate defense industry manufacturing automation Defense industry manufacturing startup Hadrian Automation Inc. said today it has closed on a fresh capital infusion of $260 million led by Peter Thiel's Founders Fund and Lux Capital, bringing its total amount raised to date to over $500 million. Today's Series C round also saw participation from previous investors Andreessen Horowitz and new backers including Brad Gerstner's Altimeter Capital, the company said. Hadrian wants to revolutionize manufacturing on American shores by implementing advanced, artificial intelligence-based automation to help mass produce components for defense and aerospace industry customers at a fraction of the time and cost they're currently produced. It's aiming to disrupt an industry that's largely in the hands of dozens of smaller machining operators that are reliant on aging workforces. The startup's initial factories were focused on precision Computer Numerical Control machining, which is a process that's used to make metallic components with extremely precise measurements, generally measured in microns - thinner than a human hair - rather than millimeters. Having built its first CNC machining factory, Hadrian founder and Chief Executive Chris Power revealed on X the company is now looking to expand into precision welding, casting and additive manufacturing. As for the company's longer-term goals, what it wants to do is surpass the model that helped propel China to become the world's manufacturing hub. It intends to do so by employing automation alongside skilled human operators, Power told CNBC in an interview. "It's about supercharging the worker versus replacing them," he explained. Hadrian will use part of the funds from today's round to finance the construction of its third factory, a new 270,000-square-foot facility that's dubbed "Factory 3", located in Mesa, Arizona, and set to come online by the end of the year. In addition, it will also expand its existing 500,000-square-foot factory in Torrance, California, as well as its research and development facility at the same location. According to Power, the new facility will be able to deliver four-times the production output of its existing California-based factory, despite being smaller. It'll create around 350 new local jobs, and is the first of a planned four-to-five new facilities it intends to build. The startup, which was founded in 2020, is competing with defense manufacturing mainstays such as Northrup Grumman Corp. and Lockheed Martin Corp., and says it has already won a number of contracts from the U.S. Department of Defense. Its factories make extensive use of AI and robotics to automate as much of the production process as possible, Power explained. He added that it's filling a huge gap, because demand from the defense industry is growing, but there is a lack of skilled personnel in areas such as ship and submarine-building. "As a country, we have to treat this like a national security crisis, not just the economics of manufacturing," Power said. Hadrian reckons its automation-first approach means it can train the workers it needs to operate its factories within just 30 days, and make them ten-times more productive on average. Its existing workforce includes ex-services personnel and former nurses who had previously never set foot in a factory. The new factory will make parts to order for various defense industry customers, but in future it's also pitching an alternative, "factory-as-a-service" business model, where it will build dedicated manufacturing plants for customers that require guaranteed factory capacity.

Peter Thiel-Backed Hadrian Raises $260 Million To Build AI-Powered Mega Factory In Arizona - Lockheed Martin (NYSE:LMT), Northrop Grumman (NYSE:NOC)

Hadrian, a defense manufacturing startup, has successfully concluded a $260 million Series C funding round, led by Peter Thiel's Founders Fund and Lux Capital. What Happened: The funding will be utilized to establish a new 270,000 square foot factory in Mesa, Arizona, and expand its Torrance, California, location, CNBC reported on Thursday. The expansion is intended to strengthen Hadrian's shipbuilding and naval defense capabilities. Hadrian's CEO, Chris Power, emphasized the need for a substantial advancement in the U.S. manufacturing model compared to China's. The company is disrupting the traditional defense contracting industry, dominated by major players such as Northrop Grumman NOC and Lockheed Martin LMT, to enhance U.S. defense production and secure Department of Defense contracts. The new Arizona facility, set to commence operations by Christmas, will generate 350 local jobs. Hadrian plans to establish four to five additional facilities within the next year to support Department of Defense requirements. See Also: Jerome Powell Defends $2.5 Billion Fed HQ Overhaul, Says 'No VIP Dining Rooms,' No Private Elevators As Trump Allies Slam Project Over Versailles-Style Excess Hadrian uses robotics and artificial intelligence to automate its factories, with the goal of boosting American worker productivity. The company says it can train employees in just 30 days and make them ten times more efficient. Notable investors in this funding round include Andreessen Horowitz and Brad Gerstner's Altimeter Capital. This round follows a $92 million funding round that the company closed in late 2023. Why It Matters: The defense tech industry has been witnessing significant developments in recent times. In June, Anduril Industries secured $2.5 billion in fresh capital, doubling its valuation to $30.5 billion. This marked a pivotal moment in the company's rapid ascent within the national security sector. The funding was also led by Thiel's Founders Fund. Thiel's influence in the defense tech sector has been growing. In July, defense tech billionaire Palmer Luckey spearheaded the launch of Erebor, a digital-only bank targeting startups, cryptocurrency businesses, and defense contractors. The venture brought together a powerhouse of tech investors, including Thiel's Founders Fund. In 2024, Palantir Technologies PLTR formed a strategic partnership with the Israeli Defense Ministry to support military operations, following talks in Tel Aviv between Israeli officials and Palantir co-founders Thiel and Alex Karp. Read Next: Did He Learn Nothing? Trader Who Lost $100M Returns With High-Leverage Bets On Bitcoin Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Robert Deutsch-Imagn Images LMTLockheed Martin Corp$469.01-0.04%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum36.88Growth52.88Quality48.66Value31.11Price TrendShortMediumLongOverviewNOCNorthrop Grumman Corp$523.83-%PLTRPalantir Technologies Inc$154.590.39%Market News and Data brought to you by Benzinga APIs