A $10 billion contract: Palantir to supply US Army with software and data processing services

US technology company Palantir has signed a contract with the US Army worth up to $10 billion. The agreement is for 10 years and is aimed at meeting the growing military needs for software and data analysis.

• According to the report, the deal will combine 75 separate contracts into one large-scale corporate agreement.

• This will allow for faster delivery of proven commercial solutions to the military and eliminate additional costs and intermediary fees.

• This simplified approach reduces procurement time and provides the military with quick access to advanced data analytics and AI solutions.

• The contract gives the government the flexibility to make purchases as needed, which can result in significant savings on key defense programs. 

• The agreement also authorizes other U.S. Department of Defense agencies to purchase Palantir products on its terms for ten years.

Earlier this year, Palantir began delivering the first two artificial intelligence-based systems to the U.S. Army, the Tactical Intelligence Targeting Access Node (TITAN). These are mobile ground stations that collect data from satellite sensors and help the military plan operations more efficiently.

Palantir won the $178 million contract last March, beating out RTX Corporation, one of the largest defense contractors.

The agreement provides for the delivery of 10 TITAN systems in several stages. Each includes an advanced system with two large trucks and a basic system on two vehicles.

In addition to contracts with the U.S. Army, Palantir this year sold ATO the Maven military system based on artificial intelligence. The value of the deal was not disclosed, but according to the Financial Times, it is one of the company’s largest defense contracts. The Maven Smart System uses generative AI, machine learning, and large language models to analyze and visualize data from various sources, helping commanders make decisions faster and with fewer resources.

Earlier, the United States signed a five-year, $99.8 million contract to use its own version of Maven. This technology has already been used in Ukraine, which, according to the NYT, showed the US military its strengths and weaknesses.

Palantir’s co-founder is a well-known investor, Peter Thiel, who is close to the Pentagon and Trump’s inner circle.

General context

The use of AI in the defense sector is becoming increasingly common. After changing its policy in January 2024, which previously prohibited the use of technology for military purposes, OpenAI signed its first deal with a weapons manufacturer. Subsequently, OpenAI received a $200 million contract from the US Department of Defense, which was awarded by the Digital and AI Technologies Directorate.

Other tech giants, such as Anthropic, are also stepping up their cooperation with the military. Earlier, the startup teamed up with Palantir and AWS to provide US intelligence and defense agencies with access to the Claude family of AI models.