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U.S. Navy Hires Palantir to Reorganize Shipbuilding Supply Chain With AI

The $448 million contract deploys AI tools across shipyards and suppliers to cut submarine production times and improve visibility into schedule, cost, and risk, Navy officials said.

  • On Tuesday night in downtown Washington, D.C., Navy Secretary John Phelan and Palantir chief Alex Karp announced Shipbuilding Operating System under a $448 million contract.
  • To address long-standing shortfalls, ShipOS targets the Submarine Industrial Base to boost production capacity and tackle decades-old problems rooted in outdated tech and work practices.
  • Pilot programs demonstrated concrete time savings, with ShipOS deployed across two major shipbuilders, three public shipyards, and 100 suppliers, cutting Electric Boat’s scheduling from 160 hours to under 10 minutes.
  • The two-year contract ties Palantir payouts to measurable results such as reducing valve delivery from 12 to 10 months, overseen by Maritime Industrial Base Program and Naval Sea Systems Command.
  • Looking beyond submarines, the Navy plans to apply lessons to surface ship programs after validating approaches, while Palantir likened the effort to Project Maven and said it's 'absorbing the risk along with you' amid the DoD GenAI.mil launch.
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U.S. Navy Hires Palantir to Reorganize Shipbuilding Supply Chain With AI

The U.S. Navy has awarded a contract worth nearly $450 million to the technology company Palantir to reorganize the submarine supply chain with advan...

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Axios broke the news in Washington, United States on Tuesday, December 9, 2025.
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