Palantir and Anduril are in talks with about a dozen rivals to form a consortium that would jointly bid on government contracts in an attempt to break up the oligopoly of the country's "prime" contractors, the publication said.
The companies in talks to join the consortium include Elon Musk's SpaceX, ChatGPT creator OpenAI, autonomous shipbuilder Saronic, and artificial intelligence company Scale AI, the newspaper said, citing sources familiar with the situation.
It noted that the discussions were taking place against the backdrop of the companies' desire to eat out a bigger share of the US government's $850 billion defense budget from prime contractors Lockheed Martin, Raytheon, and Boeing.
A possible agreement is expected to be announced in January.