Palantir announced on Friday that it is launching its first two AI-enabled systems for the U. S. Army. The Tactical Intelligence Targeting Access Node systems—referred to as TITAN—function as mobile ground stations that utilize AI to gather data from space-based sensors, aiding soldiers in warfare strategy while enhancing targeting precision and strike accuracy, according to the company. Akash Jain, President and Chief Technology Officer, described the agreement as a "leapfrog moment" for the U. S. Army, emphasizing the significant software investment during an interview with CNBC's Morgan Brennan. Palantir secured a $178 million contract last March, outpacing competitor RTX Corp, marking a significant achievement for the company known for its data analysis and software services. This also represents the first occasion a software firm has served as a primary contractor for a major hardware initiative. The company has consistently provided solutions to U. S. government and defense entities, demonstrating a 45% year-over-year growth in that sector last quarter. The partnership with Palantir highlights the evolving role of software in modern warfare.

Earlier this week, Scale AI announced a contract with the Department of Defense for a key AI agent initiative. The agreement encompasses ten TITAN systems, each consisting of an advanced setup with two larger trucks and a basic setup with two vehicles, delivered in five batches, Jain detailed. These systems enable soldiers to make intelligence decisions without relying on cloud infrastructure, effectively placing "all that power in the back of a truck, " he noted. Palantir has also collaborated with Northrop Grumman, L3Harris, and Anduril Industries, founded by Palmer Luckey, to enhance capabilities for this program. This announcement comes during a turbulent period for the 2024 S&P 500 leader, as Palantir's shares have declined by more than 25% in the past month amid risk-off sentiment affecting Wall Street and the tech sector. Despite this, shares surged by 24% last month to reach a record high, driven by strong earnings and optimistic guidance linked to AI demand. Palantir has greatly benefitted from the AI trends impacting the broader market, with shares increasing by 340% last year. CEO Alex Karp has strongly advocated for investment in U. S. technology to safeguard against potential adversaries. In response to the rapid emergence of DeepSeek in January, Karp asserted to CNBC's Sara Eisen that the U. S. requires a unified national effort to defend American innovation from theft and misuse. Jain informed CNBC that Palantir is actively incorporating soldier feedback to ensure the systems are delivered on schedule and within budget. — Reporting by CNBC's Morgan Brennan.