Navy Invests $448M in Palantir AI for Shipbuilding
Thursday, December 11, 2025
The Navy and Palantir have announced a major $448 million strategic partnership to deploy an AI-powered Shipbuilding Operating System (ShipOS) across the maritime industrial base, aiming to dramatically accelerate submarine and ship production while reducing costs and delays.
Navy Secretary John Phelan and Palantir CEO Alex Karp jointly announced the Shipbuilding Operating System (ShipOS) initiative, described as "the most ambitious integration of artificial intelligence into naval construction, maintenance and repair in history." The platform aggregates data from enterprise resource planning systems, legacy databases, and operational sources to identify bottlenecks, streamline engineering workflows, and enable faster decision-making. Pilot deployments at General Dynamics Electric Boat and Portsmouth Naval Shipyard demonstrated transformational results, including reducing submarine schedule planning from 160 manual hours to under 10 minutes. The initiative is supported by Palantir's $2.5 billion in prior private sector AI investment and will target up to 100 critical suppliers, with systematic expansion planned through 2026 as the Navy addresses ongoing shipbuilding delays and modernizes its fleet amid growing maritime competition with China.
Key Facts
- • $448 million initial investment in ShipOS platform with two-year timeline
- • Pilot program at General Dynamics Electric Boat reduced planning from 160 hours to under 10 minutes
- • One supplier saw production reduced from 1,850 days to 75 days of work through ShipOS
- • Another process was accelerated from 200 hours to 12 seconds while improving quality by 50%
- • Pentagon-wide AI push includes GenAI.mil platform announced same day for all DoD personnel
- • Program targets up to 100 critical suppliers across submarine and maritime industrial base
- • Navy plans systematic expansion to surface ship programs through 2026