public Sector

Give Palantir up to $244m through 2028, says internal Defense Department memo

Draft memo taps AI data analysis biz for help with military production efficiency

EXCLUSIVE US Deputy Secretary of Defense Stephen Feinberg has drafted a memorandum directing Defense Department subordinates to purchase up to $243.9 million in services from AI-enabled data analytics biz Palantir through March 31, 2027, without a competitive bidding process, The Register has learned.The August 4th, 2026, memo calls for what would effectively be a sole-source or no-bid consulting contract. Its subject line is "Funding Palantir." It's unclear, our source told us, whether the deal has been finalized.Palantir has reportedly been the beneficiary of several such contracts, including a $3.9 million no-bid USDA contact that could reach up to $13.3 million and a $30 million no-bid contract with ICE. Last year, it signed a deal with the Army worth up to $10 billion over the next decade.

Addressed to senior Pentagon leaders and field activity directors, and specifically to the Undersecretary of Defense for Acquisition and Sustainment, and the Under Secretary of Defense for Comptroller, the memo further directs those individuals to work with military leaders to identify further funding options covering the period from April 1, 2027, through December 31, 2028.