Peter Thiel’s Founders Fund Leads $260 Million Investment in Defense Manufacturing Startup Hadrian

In an announcement made on Thursday, defense manufacturing startup Hadrian revealed the successful completion of a $260 million Series C funding round, with Peter Thiel’s Founders Fund and Lux Capital spearheading the investment.

The machine parts company intends to utilize these funds for the construction of a new 270,000 square foot facility in Mesa, Arizona, as well as expansion of its existing Torrance, California location. These efforts aim to bolster shipbuilding and naval defense capabilities.

In an interview with CNBC’s Morgan Brennan, CEO Chris Power expressed the need for a significant advancement in manufacturing capabilities within the United States, stating, “What we require is a quantum leap beyond China’s manufacturing model. It’s about empowering workers rather than replacing them.”

Defense technology startups, such as Hadrian, are challenging the established dominance of traditional defense contractors like Northrop Grumman and Lockheed Martin, aiming to enhance U.S. defense production and secure Department of Defense contracts.

Hadrian plans to commence operations at the Arizona facility by Christmas, creating 350 local jobs. The company is also in the process of developing four to five additional facilities to support production over the next year, addressing the demands of the Department of Defense.

The startup emphasizes the use of robotics and artificial intelligence to automate factories, thereby enhancing productivity of American workers. Power addressed concerns regarding a talent shortage within the U.S., stating that with their tools, they can train workers efficiently, resulting in a 10-fold increase in productivity. The company’s workforce includes former marines and nurses with no prior factory experience.

Power acknowledged the need for continuous growth but expressed gratitude towards the team and customers for enabling this expansion. He emphasized the importance of treating this as a national security issue rather than merely an economic manufacturing concern.

The funding round also incorporates investments from Andreessen Horowitz, as well as new stakeholders such as Brad Gerstner’s Altimeter Capital. Hadrian previously closed a $92 million funding round in late 2023.