Overview

• The Defense Department recently moved its Chief Digital and Artificial Intelligence Office under the research and engineering arm to pursue an explicit AI-first posture.
• The Pentagon approved a $100 million ceiling agreement with Scale AI to provide its data-labeling platform across the department.
• Palantir reported its first $1 billion quarter with revenue up 48% year over year, including 53% growth in U.S. government sales and 93% growth in U.S. commercial revenue.
• Deal activity at Palantir accelerated in Q2, with $2.3 billion in total contract value, $684 million in annual contract value, and 157 deals of at least $1 million, including 42 over $10 million.
• IBM is positioned through Red Hat’s hybrid-cloud stack to support secure connectivity and data management for military AI deployments.