Palantir gets $10 billion contract from US Army

The U.S. Army awarded Palantir a $10 billion contract, the largest ever for the data analysis company, solidifying its role in military data processing. This follows a $795 million allocation to the AI targeting software, Maven Smart System.

The new agreement marks a significant change in the Army's purchasing practices, aiming for cost efficiencies and faster access to data integration and AI tools for soldiers.

This is a 10-year deal with Palantir, a tech company, worth up to $10 billion to supply commercial software, including tools for data analysis and artificial intelligence. This enterprise agreement (EA) combines 75 separate contracts into one to simplify purchasing, speed up delivery, and cut costs by eliminating extra fees.

It allows the Army and other Department of Defense branches to buy software and services as needed with discounts based on bulk purchases. The Army’s chief information officer, Leo Garciga, said this deal modernizes capabilities while saving money. The Army is also negotiating similar agreements with other companies and will continue to encourage competition for future programs, using these deals to get better pricing and efficiency.

Palantir has gained traction in Washington, securing contracts with several federal agencies. This shift aligns with the Trump administration's focus on AI and enhancing military capabilities amid rising global tensions.