Defense tech startup Anduril Industries has faced numerous setbacks during testing of its autonomous weapons systems, according to new reporting by the WSJ. The problems cited include more than a dozen drone boats that failed during a Navy exercise off California in May, with sailors warning of safety violations and potential loss of life; a mechanical issue that damaged the engine of Anduril’s unmanned jet fighter Fury during a summer ground test; and an August test of its Anvil counterdrone system that caused a 22-acre fire in Oregon.

Founded in 2017 by Palmer Luckey, Anduril raised $2.5 billion back in June at a $30.5 billion valuation led by Founders Fund, which help incubate the company. The company has won numerous military contracts, including programs to build autonomous aircraft and counter-drone systems.

Beyond testing failures, the Journal reports that Anduril’s only real battlefield experience in Ukraine has also been problematic. Front-line soldiers with Ukraine’s SBU security service found that Altius loitering drones crashed and failed to hit targets. The issues were reportedly severe enough that Ukrainian forces stopped using the drones in 2024 and haven’t fielded them since, though Anduril maintains that its challenges are typical of weapons development, that its engineering team is achieving meaningful progress, and that the aforementioned incidents don’t indicate any underlying flaws in its technology.