On Wednesday, the U.S. Army awarded Palantir a contract valued at $400.7 million to continue providing its artificial intelligence-enabled Vantage system, which serves as the main data platform for the Army.

This contract spans a duration of up to four years and has the potential to reach nearly $620 million if additional options are exercised. Palantir was first brought on board in 2018 to develop the Army Data Platform (ADP), which consolidates approximately 180 disparate data sources into a unified ecosystem.

According to a company statement dated December 18, 2022, the Army has utilized Palantir’s software to significantly enhance its data usage and AI capabilities, thereby improving mission effectiveness and expediting decision-making across the force. Initially designed to assess personnel and combat readiness, the platform has since evolved to support various applications for warfighters, covering multiple data domains such as logistics, recruiting, force management, financial management, and risk management.

Palantir is committed to expanding the capabilities of Vantage, with Palantir USG President Akash Jain stating that the ongoing integration of new AI features will enable the Army to effectively analyze data for high-priority missions. The company indicated that Vantage currently has over 100,000 users within the Army and that the user base continues to grow.

Palantir’s partnership with the Defense Department, especially with the Army, has flourished since 2018 when it won a competitive contract against Raytheon to provide a new tactical version of the Distributed Common Ground System-Army (DCGS-A), an intelligence analysis interface. Notably, Palantir successfully sued the Army in 2016 over its procurement strategy for DCGS-A before securing this subsequent contract.

In response to changing needs, the Army has adopted different strategies for acquiring software capabilities and is in the process of formulating a software acquisition policy to streamline collaboration with the software industry.

Jen Judson, who provides coverage on land warfare for Defense News, authored this report. She has previously worked with Politico and Inside Defense, holding a Master of Science degree from Boston University and a Bachelor of Arts from Kenyon College.