Investment Proposal: Anduril Industries

 Le, Damien

Writ 340

18 October 2024

Investment Proposal Memo

The triple bottom line refers to a framework for businesses that focuses on the importance of social, environmental, and economic performance areas. Using this framework, companies are encouraged to focus on the societal and environmental impacts, focusing on sustainability practices while still being able to keep an eye on profit. Corporate Social Responsibility is when businesses take action that addresses their impact on society as well as the environment. A social enterprise is an organization that operates as a business, however, it differs in that its primary goal is to address cultural and environmental challenges. These organizations usually choose to invest their profits into their mission rather than to the shareholders. A carbon footprint is the total amount of greenhouse gasses emitting directly or indirectly from an entity, including individuals, organizations, or products. The carbon footprint is usually measured in equivalent tons of carbon dioxide. In order to measure the carbon footprint, various methodologies and tools are used in order to take into account numerous factors such as energy consumption, transportation, waste production, and industrial processes. Life cycle assessments are necessary for organizations to use because it evaluates the total emissions associated with a certain service or product from the start of creation to the end of the product. Reducing emissions/carbon footprint is an important factor to combating climate change, minimizing environmental degradation, as well as promoting public health. 

Global security grows harder and harder to protect as technological advances in countries continue to compete with one another, so I want to introduce ADMP to Anduril Industries. Anduril Industries is a technology company founded in 2017 by Palmer Luckey, the co-founder of the Oculus VR system, that focuses on the use of AI in military technology and defense in order to ensure our nation has adequate security. The Lattice AI platform, Anduril Industries’ flagship model uses various sensors and data sources that constantly runs in real-time in order to provide situational awareness for military operations at the border or what would be considered blind spots around the world. Anduril is perceived by many technology companies as a disruptor, meaning that they are not afraid to question how things are done and test many strategies against the pre-existing products in the current market. With the direction Anduril is heading with their products, they are characterized as a next generation defense contractor. Due to its rapid growth in progression of technological advancements, this startup company has gained a lot of attention from other technology companies as well as militaries as they emphasize on developing solutions that improve on military capabilities. Anduril is seen as the leader in keeping up with society’s progression in cutting edge technology, being able to incorporate new concepts such as AI into their own products, succeeding other defense firms that have long dominated that field. Anduril has seen rapid economic growth since 2020, as in 2021, the company was able to gain an increase in revenue, which brought them up to $174 million. And in 2023, Anduril got a valuation of $1.9 billion following a $450 million funding round, which shows that Anduril has a strong investor confidence as well as high demand for their products. They have also been continuing to work on new projects, proof that they are able to maintain their financial viability and conduct research as well as development at the same time. According to an article from Defense One, while Anduril promotes its technology as a means to protect civil liberties and reduce human involvement in military operations, critics argue that the reliance on AI in warfare could lead to unintended consequences. The article highlights concerns regarding accountability and the potential for algorithmic bias in decision-making processes. The Intercept, an online news platform, points out that Anduril's aggressive marketing and development of military technologies may exacerbate the existing issues surrounding militarization and surveillance. The report suggests that while the company claims to support ethical standards, its focus on profit and rapid growth might overshadow these values, leading to a prioritization of innovation over ethical considerations.

Anduril strives to be a company that values ethical practices in the defense industry as their products focus on developing technology that has emphasis on leadership/human decision making given the increased situational awareness over autonomous lethal force. The company claims to foster a culture of innovation and transparency while prioritizing the welfare of personnel involved in defense operations. According to Anduril’s website, the company is dedicated to "delivering cutting-edge technology to help solve the toughest challenges faced by our national security." Anduril believes that to have responsible innovation, they must collaborate with government entities to make sure their technology is not being abused and used ethically and effectively. 

Works Cited

Elkington, John. "Cannibals with Forks: The Triple Bottom Line of 21st Century Business." New Society Publishers, 1998.

Carroll, Archie B. "The Pyramid of CSR: Towards the Moral Management of Organizational Stakeholders." Business Horizons, vol. 34, no. 4, 1991, pp. 39-48.

Dees, J. Gregory. "The Meaning of Social Entrepreneurship." 1998.

WMO. "Climate Change: The 2021 State of the Global Climate." World Meteorological Organization, 2021.

Defense One. “The Promise and Peril of Anduril’s Autonomous Systems.” 2023.