The U.S. Navy has contracted with Palantir Technologies for nearly $450 million to enhance its submarine supply chain using advanced artificial intelligence (AI) tools. Palantir, a prominent defense technology contractor, specializes in systems for analyzing manufacturing activities, managing intelligence data, and improving tactical targeting processes. Known for its work on the mission command platform for U.S. Special Operations Command, as well as various sensor integration projects for the U.S. Army, Palantir will develop a system called Ship OS. This platform aims to streamline parts ordering and delivery for major nuclear submarine contractors, including Huntington Ingalls Industries (HII) and General Dynamics Electric Boat, in addition to three public shipyards involved in submarine repairs.
Navy Secretary John Phelan emphasized that this investment will provide essential resources for shipbuilders, shipyards, and suppliers, enabling them to modernize operations significantly. By leveraging AI and autonomous tools at scale, the initiative aims to enhance scheduling efficiency, increase operational capacity, and reduce costs within the shipbuilding sector.
The rollout of Ship OS builds upon preliminary trials funded by the BlueForge Alliance at General Dynamics Electric Boat and HII Newport News. Initially referred to as “Warp Speed for Warships,” these test applications utilized Palantir’s Foundry product, yielding substantial labor savings in production scheduling and material reviews.
The implementation of the Ship OS program will fall under the Navy’s Maritime Industrial Base (MIB) program, which is a government initiative focused on supporting and reorganizing private sector resources to cater to Navy requirements. The submarine supply chain is currently under significant stress, and the MIB aims to achieve cost and efficiency gains that could offset the initial outlay for the project. A critical goal is to reduce delays in the production timetable for submarine programs, ensuring that manufacturing and repair operations are back on track—a vital aspect of national security. Upon successful integration within the submarine sector, there are plans to extend Ship OS to surface ship programs as well.
Additionally, last year, the Navy announced a separate $920 million contract with Palantir, covering a five-year period for diverse software, hardware, and consulting services, underscoring the increasing reliance on advanced technology to enhance military capabilities and operational efficiency.
