Lockheed Martin Donates $1M To Trump's Inaugural Committee As Speculation Grows Over Elon Musk-Led DOGE Crackdown On Traditional Defense Contracts

Defense giant Lockheed Martin Corp. (NYSE:LMT) has donated $1 million to President-elect Donald Trump’s inaugural committee, maintaining its tradition of inaugural support amid rising competition from technology companies in the defense sector.

What Happened: The donation, made Dec. 2, mirrors Lockheed’s previous contributions to both Trump’s 2017 and President Joe Biden‘s 2020 inaugurations, CBS News reported on Friday. The aerospace firm, valued at over $110 billion, reported $67.6 billion in net sales for 2023 under CEO Jim Taiclet.

This contribution comes as Palantir Technologies Inc. (NYSE:PLTR) and Anduril Industries reportedly lead a new tech consortium, challenging traditional defense contractors’ grip on the $850 billion U.S. military market. The group, which may include SpaceX and OpenAI, plans to announce formal agreements in January.

Palantir’s market capitalization has surged to $155 billion, surpassing Lockheed Martin’s valuation. The data analytics company’s shares soared more than 50% following Trump’s election victory, despite a recent 11.78% year-to-date decline.

See Also: Singapore Cracks Down On Polymarket: Regulator Issues Warning Against ‘Illegal Gambling’

Why It Matters: Adding pressure on traditional contractors, Trump’s appointed Department of Government Efficiency (DOGE) co-lead, Elon Musk, recently criticized Lockheed’s F-35 fighter program, advocating for drone warfare over the $1.8 trillion manned aircraft initiative.

The inaugural committee has secured over $170 million for January events, including a reception at the National Gallery of Art and The Starlight Ball at Union Station. Other major tech donors include Meta Platforms Inc., Microsoft Corp., Amazon.com Inc., Alphabet Inc.‘s Google, and Apple Inc.

Wedbush Securities analyst Dan Ives predicts 2025 will be a breakthrough year for tech companies in defense, as the sector increasingly emphasizes AI-powered solutions and autonomous systems over traditional military hardware.

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Image Via Lockheed Martin

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.