Palantir bags $10B defense deal from US Army
What's the story
Palantir Technologies, the American data firm co-founded by tech mogul Peter Thiel, has bagged a massive $10 billion contract with the US Army. The deal highlights the company's expanding role as a key player in America's defense technology. The agreement will bring Palantir's advanced artificial intelligence (AI) and data solutions into Army operations over the next decade.
Strategic integration
Deal merges existing software contracts into 1
The newly signed contract consolidates several existing software and data-related contracts into a single, long-term enterprise agreement. Under its terms, the Army will have a broad timeline to acquire Palantir's data platforms and AI tools. These range from battlefield logistics to decision-making software, effectively turning the company into a digital backbone of modern military operations.
CEO's statement
Global reach and commitment to US interests
Palantir, which was co-founded in 2003 by Thiel and Alex Karp, among others, with Central Intelligence Agency (CIA) backing, has a global reach. It serves banks, hospitals, the US government, and the Israeli military. At a recent client summit in Palo Alto, Karp emphasized his company's commitment to American global dominance saying, "We want and need this country to be the strongest, most important country in the world."
Revenue surge
Surge in government contracts propels Palantir's growth
Palantir's government business is witnessing a major boom. In Q1 2025, it raked in $373 million from US agencies, a whopping 45% increase from last year. Earlier this year, federal immigration authorities (ICE) awarded the company a $30 million contract to develop an innovative platform for tracking deportations and visa overstays.