Palantir Technologies has delivered its first two Tactical Intelligence Targeting Access Node (TITAN) systems to the U.S. Army.
Palantir won a $178 million contract for the system last March, besting competitor RTX Corporation. The deal is significant because it highlights the evolving adoption of software on the battlefield, representing the first time a software company has acted as a primary contractor for a substantial hardware program.
The TITAN systems, which Palantir describes as mobile ground stations, utilize artificial intelligence to gather data from space sensors to assist soldiers in strategic planning and improve strike accuracy. Akash Jain, President and Chief Technology Officer of Palantir USG, described the agreement as a “leapfrog moment” for the U.S. Army during an interview with CNBC’s Morgan Brennan.
The company is delivering a total of 10 TITAN systems under the agreement. Each system includes two larger trucks that comprise an advanced system, and a basic system with two vehicles, delivered across five orders, Jain explained. The systems are designed to enable soldiers to make intelligence decisions without the need for cloud access, essentially putting “all that power in the back of a truck,” he added.
Palantir has partnered with Northrop Grumman, L3Harris, and Anduril Industries, a defense tech startup founded by Palmer Luckey, on some capabilities related to the program. Palantir has provided services to U.S. government and defense agencies. Last quarter, this sector saw a 45% year-over-year increase.
This announcement arrives during a dynamic time for the 2024 S&P 500. The company’s shares have declined by over a quarter in the past month, caused by risk-averse sentiment affecting both Wall Street and the technology sector. However, shares previously surged by 24% to a record high after the company declared impressive earnings and guidance, driven by AI demand. Palantir has been a primary beneficiary of the AI trends, with an impressive 340% increase in the last year.
Palantir’s CEO, Alex Karp, has been a vocal advocate for investment in the U.S. tech sector to safeguard against potential threats. In January, when DeepSeek entered the tech arena, Karp told CNBC’s Sara Eisen that the U.S. needs a unified effort to protect American innovation from being stolen and misused.
Jain told CNBC that Palantir has been leveraging soldier feedback to ensure on-time and on-budget system delivery.
— CNBC’s Morgan Brennan contributed to this reporting.
