US Army awards Palantir record $10 billion contract to power future AI warfare

On July 31, the U.S. Army awarded Palantir a contract that could be worth up to $10 billion over the next ten years, marking the largest deal ever given to the software and data analytics firm. This contract reinforces Palantir’s growing importance as a key military data processor and follows a $795 million investment earlier this year to enhance the Army’s AI targeting system, Maven Smart System.

According to an Army statement, the new enterprise agreement represents a major change in how the Army purchases software, creating a comprehensive framework to address its future software and data requirements. The contract will consolidate existing software agreements and is expected to generate substantial cost savings across critical military programs.

“This streamlined approach reduces procurement timelines, ensuring soldiers have rapid access to cutting-edge data integration, analytics, and AI tools,” the Army said.

Palantir, co-founded by billionaire investor Peter Thiel, CEO Alex Karp, and three others with a mission rooted in patriotism shortly after 9/11, has recently expanded its presence within Washington, securing contracts with seven federal agencies in recent months.

This shift aligns with the Trump administration’s focus on artificial intelligence and a broader push to involve commercial companies in government operations.

As the U.S. confronts escalating challenges — from the conflict in Ukraine to rising tensions between China and Taiwan — the Pentagon has prioritised boosting its capabilities in data mining and AI-driven warfare.

Palantir Technologies, established in 2003, specialises in big data analytics. It builds platforms that help organisations integrate, visualise, and analyse large datasets to improve decision-making. Its flagship products include Palantir Gotham, widely used by government intelligence and defence sectors, and Palantir Foundry, tailored for commercial clients for data management and operational insight. The company is recognised for its extensive work with U.S. intelligence agencies, law enforcement, and various industries worldwide.

By Tamilla Hasanova