The North Atlantic Treaty Organization (NATO) has acquired an AI military system from Palantir Technologies. The acquisition is the alliance’s attempt to strengthen its defense against AI advancements by rival nations.
NATO has finalized a deal with Palantir Technologies to acquire the company’s AI-powered Maven Smart System. The deal is NATO’s first in the AI industry.
The alliance released its first AI strategy in October 2021, committing to integrate AI into its defense systems. The AI strategy emphasized responsible AI use, in line with international law and democratic values.
Since then, NATO has launched initiatives like the Defence Innovation Accelerator for the North Atlantic (DIANA) and the NATO Innovation Fund to support emerging tech. The Maven acquisition builds on this momentum and is aimed at enhancing battlefield intelligence.
NATO embraces AI warfare
NATO has acquired an artificial intelligence-powered military system from Palantir Technologies. The acquisition appears to be part of its strategy to keep up with the AI technologies of hostile nations like China.
President Donald Trump threatened to withdraw the United States from the alliance due to low defense contributions, which sparked anxiety among the European members. The acquisition of Palantir’s Maven Smart System (MSS NATO) came after the threat, in a show of compliance with Trump’s request for an increased budget.
Palantir Technologies’ Maven Smart System (MSS NATO) uses generative AI, machine learning, and large language models to provide its users with a “secure, common operational capability.” The system will be deployed to support ongoing NATO operations, the alliance announced on Monday.
“It’s able to take the place of entire teams doing these rather dull tasks,” Noah Sylvia, an analyst at Royal United Services Institute, said.
So as to not be completely reliant on the US’ AI technology, France developed Artemis, which Sylvia described as a “domestic alternative, but not a competitor” to Palantir’s Maven system.
NATO is investing heavily in increasing its defense technology capabilities. It completed the MSS NATO acquisition in six months, which is notably one of the fastest-completed contracts in the alliance’s history. The system is due to begin operations within the next thirty days.
While the financial details of the deal were not disclosed, it is likely to be one of Palantir’s most significant defense contracts this year.
“We’re proud to support NATO’s drive to bolster deterrence by deploying an AI-enabled warfighting platform. This partnership underlines the alliance’s determination to lead fearlessly with technological innovation,” Shon Manasco, senior counselor at Palantir said.
Trump supporter Peter Thiel backs Palantir Technologies
Palantir Technologies is a software company chaired by Donald Trump backer Peter Thiel.
Thiel is one of Silicon Valley’s most prominent conservative figures, and he publicly backed Trump’s first run for the US presidency in 2016. He was also a notable supporter of the current vice president, JD Vance’s bid to be selected as Trump’s running mate for the 2024 elections.
Palantir has won more than $2.7B in US government contracts since 2009 and won over $1.3B in the defense department specifically, according to federal records.
The company’s stock has risen by more than 300% over the past 12 months, and following Monday’s announcement, it rose by 5.6% to $93.47.
The company is expected to maintain its momentum as investors believe that the company will continue to be a beneficiary of the Trump administration’s defense spending.
The US military already uses its own version of Palantir’s Maven technology. The contract was extended by 5 years with a $99.8M settlement last September. A similar system was also deployed in Ukraine.
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