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U.S. Army Consolidates 75 Contracts in $10 Billion AI Software Deal With Palantir

It aims to streamline procurement to accelerate soldiers’ access to commercial data analytics, artificial intelligence tools, delivering greater cost efficiency.

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Palantir logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • The agreement folds 75 legacy contracts—15 prime and 60 related—into a single ten-year vehicle capped at $10 billion.
  • The Army and other Defense Department agencies can draw on Palantir’s commercial offerings as needed under volume-based discounts.
  • Officials say the framework slashes procurement timelines to boost readiness by speeding deployment of data-integration and AI software.
  • By removing reseller fees and offering flexible purchasing, the contract is designed to generate significant cost savings across mission-critical programs.
  • As Palantir’s largest Pentagon award to date, the deal reflects the military’s shift toward integrating commercially available AI tools in operations.