By Krystal Hu, Anna Tong and Kenrick Cai (Reuters) -AI-powered defense startup Anduril Industries is in talks for a new funding round that could hike the valuation of the Palmer Luckey-founded company to $28 billion,

Defense technology startup Anduril Industries Inc. is in talks to double its valuation to more than $28 billion with a new funding round that would raise $2.5 billion, according to a person familiar with the matter.

Anduril has signed a term sheet to raise up to $2.5 billion at a valuation of $28 billion, according to sources close to the company.