Archer Aviation raises $430M, partners with Anduril to develop military aircraft – News

Archer Aviation Inc., a flying taxi manufacturer, today announced that it has raised $430 million in funding to develop a military aircraft.

The company also detailed a partnership with Anduril Industries Inc., another well-funded startup active in the defense sector. The collaboration will reportedly focus on Anduril’s artificial intelligence software.

Santa Clara, California-based Archer is developing an electric flying taxi dubbed Midnight (pictured). It’s a so-called VTOL aircraft that takes off and lands vertically like a helicopter but flies like a plane. Midnight is powered by propellers that can cover up to 100 miles per trip at a top speed of 150 miles per hour.

Last year, Archer signed a $142 million contract to supply up to six Midnights for the U.S. Air Force. Additionally, the company formed a government services advisory board to expand its work with the U.S. Defense Department. Archer delivered the first aircraft in August.

The company also plans to use Midnight as the basis of a flying taxi network. A few weeks ago, it disclosed plans to make the service available in Los Angeles by 2026. 

Midnight is manufactured at a factory in Georgia it operates together with Stellantis NV. The automaker was one of the contributors to the $430 million funding round announced today. The investment also included the participation of United Airlines, Wellington Management and 2PointZero.

Archer will use the capital for general corporate purposes, as well as to fund a new product development program called Archer Defense. At the center of the program is a planned military aircraft that will use a VTOL design much like the Midnight. 

According to News, the aircraft is set to feature a “hybrid gas-and-electric-powered” propulsion system. The system will reportedly make the aircraft more difficult to detect.

Anduril, the company with which Archer is collaborating on the project, received a $14 billion valuation in its most recent funding round. It makes a range of defense systems including drones and trucks. In August, Anduril detailed plans to build a new factory that will expand its manufacturing capacity by more than five million square feet. 

The collaboration with Archer will center on Lattice, a software platform that Anduril provides alongside its hardware products. The platform uses AI to automate some of the tasks involved in analyzing sensor data from defense systems. Archer didn’t specify what role the software will play in its new military aircraft development program. 

“With Anduril by our side, and this new influx of capital, we will accelerate the development and deployment of advanced aerospace technologies at scale,” said Archer founder and Chief Executive Officer Adam Goldstein.

The company’s latest $430 million round comes on top of the $502 million in cash and cash equivalents already on its balance sheet. Archer raised part of that capital when it went public in 2021 through a merger with a SPAC, or special-purpose acquisition company. Its shares trade on the NYSE.

Image: Archer