President-elect Donald Trump's planned U.S. government efficiency drive involving billionaire Elon Musk could lead to more joint projects between big defense contractors and smaller tech firms in areas such as artificial intelligence, drones and uncrewed submarines, according to interviews with company executives.

Musk has indicated that Pentagon spending and priorities will be a target of the efficiency initiative, spreading anxiety at defense heavyweights such as Boeing, Northrop Grumman, Lockheed Martin and General Dynamics.

Smaller military technology companies such as AI software firm Palantir and drone-maker Anduril have been buoyed by the prospect of Musk further loosening the grip that defense giants have held on the Pentagon's budget for many decades.