Palantir won the $178 million contract last March, beating out competitor and defense giant RTX Corporation. It marked a key milestone for the company known for its data analysis and software services, as well as the first time a software company has worked as a primary contractor for a significant hardware program.
The company has long provided solutions to U.S. government and defense agencies, showing 45% year-over-year growth in that segment last quarter. The agreement with Palantir also underscores the shifting landscape of software use on the battlefield. Earlier this week, Scale AI announced a deal with the Department of Defense for a flagship AI agent program.