Palantir $PLTR ( ▲ 4.55% ) climbed early Wednesday after announcing a new $448 million contract with the US Navy to modernize submarine maintenance and the broader maritime supply chain. The initiative, called ShipOS, will deploy Palantir’s Foundry and AIP software across the Navy’s Maritime Industrial Base to speed up shipbuilding and fix long-standing production bottlenecks.
The Navy called the partnership a major overhaul for a system plagued by delays and cost overruns, noting that ShipOS will give decision makers real-time visibility across shipyards and suppliers. Early pilots have already shown dramatic results, including cutting submarine schedule planning from 160 hours to 10 minutes and reducing material review times from weeks to under an hour.
While Palantir has been expanding its commercial AI business, the US government remains its largest customer. The Navy says ShipOS will begin with the submarine industrial base and expand across shipyards over time, with productivity gains expected to offset the program’s cost as the military pushes to rebuild its fleet.