Navy invests $448 million in Palantir tech to speed up shipbuilding with AI
WASHINGTON — The Navy is making a bold push to modernize its fleet, investing $448 million in artificial intelligence and autonomous systems to speed up shipbuilding and streamline operations.
At the heart of the effort is “Ship OS,” a platform powered by AI software from Palantir, designed to optimize production, cut costs, and help the Navy build ships faster and more efficiently. The initiative aims to address longstanding challenges in meeting shipbuilding timelines.
The funding will advance AI and autonomy across critical areas including ship design, construction, and operational support, giving commanders real-time intelligence and greater oversight. “This investment provides the resources our shipbuilders, shipyards, and suppliers need to modernize their operations and succeed in meeting our nation’s defense requirements,” Navy Secretary John Phelan said. “By enabling industry to adopt AI and autonomy tools at scale, we’re helping the shipbuilding industry improve schedules, increase capacity, and reduce costs. This is about doing business smarter and building the industrial capability our Navy and nation require.”
Officials say the technology is already delivering transformative results. Palantir’s head of defense and former Rep. Mike Gallagher (R-Wisc.) told The Post that Ship OS has dramatically reduced production timelines.
“Ship OS turned 1,850 production days into 75 days of work for one supplier. It transformed a 200-hour process into 12 seconds — all while improving quality by 50% — and eliminated 2,500 planning days at another,” Gallagher said. “Ship OS is designed to make shipbuilders dominant, get taxpayers more value for every shipbuilding dollar, and ensure America continues to dominate the seas.”
The Navy’s push comes amid intensifying global maritime competition, particularly as China rapidly modernizes its fleet, which now surpasses the U.S. in size. In response, the U.S. military has been integrating AI and robotics to maintain strategic advantages.
By leveraging AI to optimize workflows and automate key processes, the Navy hopes to cut years off the shipbuilding timeline. According to the service, the initiative will consolidate data from enterprise systems, legacy databases, and operational sources to identify bottlenecks, streamline engineering workflows, and support proactive risk mitigation, creating a unified, data-driven approach to production that enables faster, more informed decisions.
The program aligns with President Trump’s push to bolster American AI initiatives, a central focus of his second term.
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