The Pentagon is set to formally adopt Palantir’s (NASDAQ:PLTR) Maven Smart System as an official program of record, a move that locks in long-term funding for the AI weapons-targeting platform already being used by the U.S. military in thousands of strikes against Iran, Reuters reported on Friday, citing a memo.
Feinberg Orders Maven Embedded Across All Military Branches
According to the report, Deputy Secretary of Defense Steve Feinberg issued the directive in a March 9 letter to senior Pentagon leaders and U.S. military commanders. The decision is expected to take effect before the end of the fiscal year in September. Feinberg also ordered oversight of Maven to shift from the National Geospatial Intelligence Agency to the Pentagon’s Chief Digital Artificial Intelligence Office within 30 days, with future contracting handled by the Army.
Maven is a command-and-control platform that rapidly analyzes data from satellites, drones, radars, sensors, and intelligence reports, using AI to automatically flag potential threats and targets such as enemy vehicles, buildings, and weapons stockpiles.
Palantir and the Pentagon did not immediately respond to Benzinga‘s requests for comment.
A Windfall for Palantir’s Government Business
Designating Maven as a program of record streamlines its adoption across all arms of the military and secures stable, long-term funding — a significant win for Palantir, which already landed a U.S. Army contract worth up to $10 billion last summer.
The company’s stock has roughly doubled over the past year, pushing its market cap to nearly $360 billion.
Beyond defense, Palantir’s commercial business is expanding rapidly. Last month, Palantir posted fourth-quarter revenue of $1.41 billion, surpassing analyst expectations of $1.33 billion. The AI software firm also reported adjusted earnings of 25 cents per share, topping forecasts of 23 cents per share.
Price Action: Shares of Palantir closed down over 3% at $150.68 on Friday. The stock was slightly up in trading after the bell, having lost about 10% so far this year, according to Benzinga Pro.
According to Benzinga Edge Stock Rankings, Palantir shares are showing an upward trend in the short and long-term, although the company’s Growth score ranks in the 98th percentile.
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