Denver, Dec 11 — The United States Navy announced a groundbreaking partnership with Palantir Technologies Inc. (NASDAQ: PLTR) to deploy Palantir’s Foundry and Artificial Intelligence Platform (AIP) across the nation’s Maritime Industrial Base (MIB). The initiative, ShipOS, authorizes up to $448 million to accelerate the adoption of artificial intelligence and autonomy technologies across the industrial base.
The announcement was made during an industry event hosted by the Department of the Navy, where Secretary of the Navy John Phelan was joined by Palantir Chief Executive Officer, Alex Karp, to announce the partnership. ShipOS will leverage Palantir’s software to bring modern best practices to the complex, data-heavy environment of Navy shipbuilding.
“For decades, Americans have watched billions of their tax dollars poured into a maritime industrial base plagued by bureaucracy, delays, and chronic shortfalls. Today, we are finally delivering real change for the American taxpayer, for our world-class workforce, and for the Sailors and Marines they keep in the fight and support,” said Secretary of the Navy John Phelan. “ShipOS is not just new software; it is a new way of doing business that puts Palantir’s cutting-edge tools in the hands of decision-makers at every level, giving them complete, accurate, real-time feedback across the supply chain. This is how we turn America’s technological edge into maritime industrial dominance and how we build a true Golden Fleet at sea.“
“Palantir’s very existence is built on giving American warfighters the most dominant advantage in the world. Working with the U.S. Navy is the embodiment of our mission. And ShipOS arms the welders, engineers, and logisticians inside America’s marine industrial base with the software they deserve. ShipOS is our commitment to the sailors who defend us, the workers who equip them—and to the country we are privileged to serve,” said Dr. Alex Karp, co-founder and CEO of Palantir Technologies.
The initiative, managed by the Maritime Industrial Base (MIB) Program in collaboration with Naval Sea Systems Command (NAVSEA), will aggregate data from enterprise resource planning systems, legacy databases, and operational sources to identify bottlenecks, streamline engineering workflows, and support proactive risk mitigation, providing a unified, data-driven approach to production management that enables faster, more informed decisions.
“This initiative equips industry with the digital capabilities needed to deliver at scale,” said Matthew Sermon, Direct Reporting Program Manager for the Maritime Industrial Base Program. “By supporting our industrial base with these tools, we’re helping them modernize operations, expand capacity, and sustain America’s maritime advantage.”
During pilot deployments, these AI-powered capabilities demonstrated transformative results. At General Dynamics Electric Boat, submarine schedule planning was reduced from 160 manual hours to under 10 minutes, while Portsmouth Naval Shipyard cut material review times from weeks to under one hour. These early outcomes demonstrate that integrating AI and autonomy directly into shipbuilding operations can dramatically improve efficiency, accuracy, and output.
The initial investment will focus on Submarine Industrial Base shipbuilders, shipyards, and critical suppliers. The expansion beyond the Submarine Industrial Base will be systematic and informed by lessons learned, with the Navy validating approaches and developing proven implementation strategies that can be adapted for surface ship programs.
This initiative is designed to deliver measurable cost savings over time through improved schedules, reduced delays, and increased production efficiency, with productivity gains offsetting the initial investment while establishing a more capable and resilient industrial base.