Australia is moving faster than the U.S. Navy in bringing an extra-large uncrewed undersea vehicle (XLUUV) into service. On Tuesday, defense startup Anduril announced that its Ghost Shark fleet will begin operations in Australian waters next year under a AUS$1.7 billion (US$1.1 billion) contract.
The five-year deal secures long-term funding for delivery, maintenance, and future development. For Anduril, it’s the “holy grail” of defense contracts — a program of record that guarantees recurring revenue by becoming a permanent line item in Australia’s defense budget.
The Ghost Shark is designed for long-range, stealthy surveillance and strike missions. Its rapid adoption highlights Australia’s urgency to strengthen its military capabilities in the Indo-Pacific, where tensions with China continue to rise.
“Anduril President Chris Brose praised Australia’s bold approach, saying:
‘This comes down to seriousness, imagination, and the will to act. Australia has fewer people, far less money, and many of the same bureaucratic challenges as the Pentagon — yet they’ve managed to achieve this.’
The difference with the U.S. is stark. Boeing’s Orca XLUUV, the only comparable American program, remains years behind schedule. By contrast, Australia and Anduril co-funded Ghost Shark in 2022 with $50 million each. The first prototype arrived in April 2024 — a full year ahead of schedule — and production has already begun.
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