Palantir bags $10 billion Army deal, one of the biggest defense contracts ever, cements it as the brain behind US war machine
Palantir Technologies
, the American data firm with deep roots in US intelligence and military operations, has landed a $10 billion contract with the US Army, a deal that underscores its growing role as the technological core of America's defense apparatus, as per a report.
Palantir Wins $10 Billion US Army Contract for Advanced AI and Data Solutions
The agreement, announced Thursday, streamlines a number of existing software and data-related contracts into a single, decade-long enterprise arrangement, according to as reported by AFP. Under the deal, the Army will have wide timeline to purchase Palantir's data platforms and AI tools, from battlefield logistics to decision-making software, effectively turning the company into the digital nervous system of modern military operations, as per the report.
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Army Chief Information Officer Leo Garciga said that, "By streamlining our procurement processes and leveraging enterprise-level discounts, we are not only enhancing our operational effectiveness but also maximizing our buying power," as quoted in the AFP report.
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Palantir's Founding and Government Ties
Palantir, co-founded in 2003 by venture capitalist and preeminent conservative and long-standing ties to the Trump administration, Peter Thiel, CEO Alex Karp, and others with CIA backing, as reported by AFP.
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The firm, which is an American data analysis and artificial intelligence company, has a reach that spans the global economy, with banks, hospitals, the US government, and the Israeli military among its ever-expanding client roster, according to the report.
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Palantir CEO Alex Karp's Vision for America's Global Dominance
At a recent client summit in Palo Alto, Karp struck a bold tone, as he said, "We want and need this country to be the strongest, most important country in the world," as quoted in the AFP report.
Rapid Growth in Palantir's Government Contracts in 2025
Palantir's government business is booming. In the first quarter of 2025, it pulled in $373 million from US agencies, which was a 45% increase from the previous year, according to the report. While in this spring, federal immigration authorities (ICE) awarded the company a $30 million contract to develop a new platform for tracking deportations and visa overstays, as reported by AFP.
FAQs
What is Palantir's new contract with the US Army about?
Palantir will provide software and AI tools for the Army's operations, covering everything from logistics to battlefield decisions, as per the AFP report.
What other sectors does Palantir serve?
Besides the military, Palantir works with banks, hospitals, and government agencies.
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