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Are AI defense firms about to eat the Pentagon?

Competitors are becoming collaborators in the industry’s hottest segment.

Defense One, Patrick Tucker, 15 Dec 24

In an unprecedented wave of collaboration, leading AI firms are teaming up—sometimes with rivals—to serve a Pentagon and Congress determined to put AI to military use. Their growing alignment may herald an era in which software firms seize the influence now held by old-line defense contractors.

“There’s an old saying that software eats the world,” Byron Callan, managing director at Capital Alpha Partners, told Investors Business Daily on Wednesday. “It’s going to eat the military too.”

Over the last week, Palantir, Anduril, Shield AI, OpenAI, Booz Allen, and Oracle announced various partnerships to develop products tailored to defense needs. Meanwhile, the House passed the 2025 National Defense Authorization Act with provisions that push the Defense Department to work more closely with tech firms on AI, and DOD announced yet another office intended to foster AI adoption.

Perhaps the most significant partnership is between Palantir and Anduril, two companies that offer somewhat competing capabilities related to battlefield data integration. Palantir holds the contract for the Maven program, the seminal Defense Department AI effort to derive intelligence from vast amounts of data provided by satellites, drones, and other sensors. Anduril offers a  mesh-networking product called Lattice for rapid collection and analysis of battlefield data for drone swarming and other operations. …………………………………………………………………

Congress gets behind AI firms

On Wednesday, the House approved a 2025 defense authorization bill that includes several provisions intended to spur military adoption of AI. The bill puts a big emphasis on building out data and cloud computing resources to enable much faster adoption of AI and AI-enabled weapons, areas where companies like Anduril, Palantir, Booz Allen, and Shield AI excel. 

One of the most ambitious is Section 1532, which mandates the expansion of secure, high-performance computing infrastructure to support AI training and development. 

This infrastructure, which will include partnerships with commercial and hybrid cloud providers, is critical for developing scalable AI models capable of adapting to evolving mission requirements………………………………………………………………………………………………………… more https://www.defenseone.com/technology/2024/12/are-ai-defense-firms-about-eat-pentagon/401673/?oref=d1-author-river

January 18, 2025 - Posted by Christina Macpherson | USA, weapons and war