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Key Points
- Palantir secures $10 billion U.S. Army deal to consolidate and modernize military software systems over the next decade.
- The contract reflects CEO Alex Karp’s defense-focused AI push and strengthens Palantir’s role in national security.
- Palantir’s market cap hits $364 billion as AI contracts and revenue growth drive investor confidence.
America’s richest Black billionaire, Alex Karp, is steering Palantir Technologies into its next chapter with a U.S. Army contract worth up to $10 billion. The deal, which spans the next decade, positions Palantir at the center of the military’s evolving software and data operations, driving efforts to modernize how the Army prepares for conflict and manages technology.
Alex Karp advances U.S. tech strategy
Karp, 57, who is worth close to $14 billion, remains second only to Nigerian industrialist Aliko Dangote among the world’s richest Black individuals. A longtime advocate of strengthening U.S. defense systems, Karp has often spoken about the need to align artificial intelligence efforts with national security. This latest contract brings those convictions into sharp focus, consolidating 75 separate Army deals into a single enterprise agreement.
According to Palantir, the contract will streamline military operations, cut red tape, and give the Army more flexibility in how it buys and deploys technology. The agreement also removes procurement fees and accelerates the government’s ability to adapt software on demand. It follows a push across federal agencies to improve cost control and performance using artificial intelligence—an agenda that gained momentum during Donald Trump’s presidency under his Department of Government Efficiency, which targeted wasteful spending and outdated systems.
Karp builds fortune on AI ambitions
Karp co-founded Palantir in 2003 with Peter Thiel and a small team of technologists, initially building tools to support intelligence agencies and law enforcement.
Over time, Palantir became known for its work in national security, helping uncover terror plots and financial crimes. But in recent years, the company has pivoted more aggressively toward artificial intelligence and commercial applications. Its AI Platform, known as AIP, is now central to that evolution, expanding Palantir’s reach far beyond its defense roots.
That shift has also reshaped Karp’s public profile and personal wealth. Raised in Pennsylvania by a Jewish mother and an African-American father, Karp has seen his net worth soar alongside Palantir’s rise in the AI space.
Palantir deepens AI government ties
Earlier this year, the company delivered its first two AI-powered systems under a $178 million Army contract. In May, the Department of Defense added $795 million to its existing contract with Palantir to expand AI capabilities through Project Maven. And in July, Palantir announced a new partnership with Accenture Federal Services to help modernize U.S. government agencies. Under the deal, Accenture will lead implementation efforts, bringing together its federal expertise with Palantir’s AI tools, including the Foundry platform.
That momentum has been reflected in the company’s financials. Palantir kicked off 2025 with a strong first quarter: revenue climbed 39 percent to $883.86 million, and net income rose to $214 million. Its total assets now stand at $6.74 billion, with shareholder equity up more than 8 percent. Its shares have gained more than 520 percent over the past year, lifting its market cap to $364 billion, solidifying Palantir’s place as one of the world’s most valuable AI firms.
