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Pentagon’s AI Push Positions Palantir and IBM for New Defense Work

Recent procurement moves under OUSD(R&E) point to faster adoption of commercial tools across defense programs.

Overview

  • The Pentagon recently moved its Chief Digital and Artificial Intelligence Office under the research and engineering arm to pursue an AI-first posture.
  • A new $100 million ceiling contract makes Scale AI’s data-labeling platform available across the Defense Department.
  • Palantir reported its first-ever $1 billion quarter with 48% year-over-year growth and a 53% increase in government revenue.
  • Palantir’s Artificial Intelligence Platform enables prompt-driven workflows that speed user onboarding and decision support.
  • IBM’s Red Hat hybrid cloud is highlighted as infrastructure that helps military users stay connected and secure sensitive data.