The U.S. Navy announced a $448 million contract with Palantir Technologies to deploy the company’s Foundry and Artificial Intelligence Platform (AIP) across the nation’s Maritime Industrial Base under the ShipOS program. The award, which will span an initial two‑year period, is intended to embed data‑driven decision‑making into shipbuilding, maintenance, and repair processes.
ShipOS is designed to reduce delays and cut costs by providing real‑time AI‑powered tools for planners and logisticians. Early pilots have already demonstrated dramatic gains: General Dynamics Electric Boat reduced submarine schedule planning from 160 hours to under ten minutes, while Portsmouth Naval Shipyard cut material review times from weeks to less than an hour. These results illustrate the program’s potential to streamline complex supply chains and accelerate production timelines.
For Palantir, the contract expands its defense portfolio and adds a substantial recurring revenue stream. The company’s government segment, which already accounts for roughly 70% of its revenue, will see a notable boost, while the commercial segment remains focused on high‑margin AI services. The deal also positions Palantir to pursue additional Navy contracts as the Department of Defense seeks to modernize its industrial base, especially in light of growing geopolitical competition in the Indo‑Pacific region.
Navy Secretary John Phelan said the initiative is “the most ambitious integration of artificial intelligence into naval construction, maintenance and repair in history,” and that it will provide “unprecedented visibility into schedule, cost and risk.” Palantir CEO Alex Karp added that the company is “bringing the same technology that powered Project Maven to manufacturing, absorbing the risk along the way” and that the partnership “arms the welders, engineers and logisticians inside America’s marine industrial base with the software they deserve.”
The contract is funded through the Reconciliation Act and is part of a broader U.S. military push that also unveiled the Pentagon’s GenAI.mil platform on the same day. Palantir’s leadership sees ShipOS as a key growth lever, with the potential to expand to 100 suppliers and beyond, further embedding its AI platform into the defense supply chain.
Overall, the award signals a significant shift toward data‑driven shipbuilding and reinforces Palantir’s position as a leading AI solutions provider for large, complex organizations. The deal is expected to strengthen the company’s recurring revenue base and accelerate its penetration into the defense sector, while the Navy gains a powerful tool to address long‑standing cost and schedule challenges.
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