U.S. Army Awards Palantir $10 Billion AI-Driven Software Contract

The U.S. Army awarded Palantir Technologies a decade-long Enterprise Service Agreement worth up to $10 billion for AI-driven battlefield analysis and targeting systems. The contract consolidates 75 existing contracts (15 prime contracts and 60 related contracts) into a single agreement, accelerating delivery of commercial software to warfighters while removing contract and reseller pass-through fees.

Context: This enterprise agreement represents a new contract vehicle that allows the Army to purchase Palantir’s software ‘a la carte’ rather than through traditional one-size-fits-all arrangements. The consolidation aims to reduce cost and complexity when acquiring software, though the $10 billion represents the maximum potential value, not guaranteed obligations.

Significance: The contract entrenches Palantir as the dominant private tech firm architecting military power and intelligence operations, raising concerns about unchecked corporate influence over national security decision-making. President Trump remarked at an AI summit, ‘We buy a lot of things from Palantir,’ underscoring the company’s ascendancy in Washington and at the Pentagon. The deal exemplifies the revolving door between Silicon Valley and defense agencies, with minimal transparency or oversight over how private AI systems will shape warfare and surveillance.