Palmer Luckey's Anduril and OpenAI are collaborating on AI defense technology, aiming to boost US counter-drone capabilities amid growing AI rivalry with China.

OpenAI has partnered with defense startup Anduril Industries to develop AI for the Pentagon. The companies said on Wednesday that they’ll combine OpenAI’s models, including GPT-4o and OpenAI o1, with Anduril’s systems and software to improve the US military’s defenses against unpiloted aerial attacks.

U.S. stock indexes rose to more records Wednesday after tech companies talked up how much of a boost they’re getting from the artificial-intelligence boom. The S&P 500 climbed 0.6% to add to what’s set to be one of its best years of the millennium.

U.S. stocks tiptoed to more records amid a mixed Tuesday of trading, tacking a touch more onto what’s already been a stellar year so far. The S&P 500 edged up by 2 points, or less than 0.1%, to set an all-time high for the 55th time this year.

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