WATCH: Anduril's Palmer Luckey talks AI, nukes and Iran on "The Axios Show"

Anduril Industries founder Palmer Luckey said the U.S. holds an "extremely small" lead over China in artificial intelligence development, warning that authoritarian governments have advantages in rapidly deploying new technology during an interview on "The Axios Show." Luckey, who was sanctioned by China in late 2025, said Beijing has excelled at copying U.S. AI models and integrating advancements into military and surveillance systems faster than America can deploy them. He argued that nuclear weapons would be stabilizing and revealed Anduril has working prototypes of underground warfare systems capable of delivering kinetic and electronic effects. Luckey also said the U.S. lacks the political will to deploy ground forces in Iran after decades of Middle East military engagements. The comments highlight growing concerns about America's competitive position as China advances its AI capabilities for both military and domestic surveillance applications.