President Donald Trump has awarded a $2.9 billion Navy contract to Anduril, the defence firm backed by a venture fund linked to Donald Trump Jr.

The contract covers submarine shipyard work. It landed days after Anduril founder Palmer Luckey joined a Pentagon weapons group, according to tech industry reports.

Separately, a $6.6 billion commitment was announced for a new Maryland defence shipyard, with Trump visiting the site. The two deals mark a major expansion of the submarine industrial base.

Critics have raised conflict-of-interest questions. Reports note that Trump sons’ investments have won billions in Pentagon contracts since the election.

Anduril has grown fast on the back of autonomous weapons and AI-driven defence tech. The Navy contract is one of the largest awards to a company outside the traditional prime contractors.

CNBC reported the contract came days after Luckey joined the Pentagon weapons group. The timing has raised eyebrows among defence watchers in Washington.