NATO Taps Palantir, Disruptive Start-Ups To Maintain Battlefield Edge

The North Atlantic Treaty Organization (NATO) has started integrating Artificial Intelligence (AI) systems into its strategic command structure as the alliance prepares for the future of war. It is doing this with disruptive tech companies.

AI systems will help the 32-member alliance maintain its technological dominance over its adversaries, NATO said in response to emailed questions. NATO is "actively" seeking "partnerships" with the private sector to develop emerging and disruptive technologies, NATO experts told European Capital Insights (ECI).

The US is leading the trend among Western countries to integrate private sector AI technology into government defense systems. Anduril Industries, an AI-defense company, Palantir Technologies (PLTR), and Archer Aviation Inc. (ACHR) have all signed contracts with the US military.

"The obvious solution to war is to have the West have the strongest, most precise, deadly weapons possible," Alex Karp, Palantir's CEO, said during the Hill & Valley Forum.

The software industry should "redirect its effort and attention to constructing the technology and artificial intelligence capabilities that will address the most pressing challenges that we collectively face," he added.

Palantir Signs Deal With NATO For Data-Fusion Platform

As part of NATO’s AI push, the alliance signed an agreement with Palantir PLTR on April 14 for its Maven Smart System (MSS) data-fusion platform. NATO will integrate the system into its allied command structure.

Palantir’s MSS blends large language models, generative AI, and machine learning into mission-critical operations. The system helps intelligence fusion and targeting, battlespace awareness and planning, and accelerated decision-making.

MSS will function similarly to the US Department of Defense's Combined Joint All-Domain Command and Control. The Pentagon awarded Palantir in May last year a $480 million contract to merge its intelligence systems with its allies onto a single platform.

Palantir will provide "customized state-of-the-art AI capabilities," Ludwig Decamp, the General Manager of the NATO Communications and Information Agency, said. This will empower "our forces with the tools required on the modern battlefield to operate effectively and decisively," he added.

Palantir stock jumped around 8% following that announcement on April 14, rallying for more than 40%. It pulled back 12.3% on May 6 as analysts argued for overvaluation of the stock, which traded at 189 times its earnings expectations for the next 12 months.

NATO Allocates €1 Billion for Start-ups With Disruptive Tech

The NATO Innovation Fund (NIF) has allocated €1 billion for venture capital investments in start-ups developing dual-use emerging and disruptive technologies. In June, the NIF invested in four companies– ARX Robotics, Fractile AI, iCOMAT, and Space Forge– to develop novel materials and manufacturing, AI, and robotics.

The alliance wants to make it easier for "non-traditional defense companies and innovators" to partner in this endeavor, particularly small—to medium-sized businesses. NATO has established "more flexible and agile procurement processes" and by allowing for new avenues for testing and evaluation.

The alliance's Rapid Adoption Action Plan aims to identify what is needed to better expedite the adoption of new technologies and their integration, according to NATO experts.

The Pentagon is building out its capabilities. It requested $1.8 billion for AI and machine learning initiatives in its fiscal year 2025 budget. The budget includes $3.2 billion for research in AI and advanced command and control systems.

Ukraine War Lays Groundwork For AI Military Integration

NATO and the Pentagon have watched Ukraine emerge as one of the first military conflicts in which AI adoption has played a crucial strategic role. Ukraine became "The First AI War," according to Time Magazine, since Russia invaded in 2022.

Karp said in February 2023 that the use of AI in war moved from a “highly erudite ethics discussion” to a top concern in Ukraine.

Palantir has enhanced Ukraine's reconnaissance, target identification, and battlefield decision-making capabilities with its Artificial Intelligence Platform. The system has enabled the Ukrainian Armed Forces to process vast intelligence datasets in real-time.

"While the war in Ukraine has not yet become an AI war, it is laying the groundwork for the future military applications of AI," Gulsanna Mamediieva, an Adjunct Professor at Georgetown University, wrote on March 20.

"To accelerate AI adoption, Ukraine implemented policy frameworks that streamline procurement, fast-track AI product approvals, and promote public-private partnerships," she added.

NATO Faces Emerging Security, Logistical Threats

NATO has sped up AI adoption and is building an "AI-ready workforce" to develop "necessary expertise," NATO experts said. This includes improving data management and sharing among NATO members, according to NATO experts.

Under its 2030 goals, NATO has identified nine priority technologies to maintain its competitiveness. They include AI, autonomy, quantum computing, hypersonic systems, space, novel materials and manufacturing, energy and propulsion, and next-generation communications networks.

Technologies "are changing the world, and the way NATO operates," the alliance said in its Digital Transformation document. "These and other emerging and disruptive technologies (EDTs) present both risks and opportunities for NATO and Allies."

Russian President Vladimir Putin highlighted the importance of this new technological race. He told a group of students in a 2017 address that "the one who becomes the leader in this sphere will be the ruler of the world."

Planned Russian Red Sea Base Seen As Threat To NATO

AI-powered command and control structures will help NATO and its allies respond more quickly to security and logistical threats from Russia and terrorist groups. A Russian base in the Red Sea is one emerging threat on NATO's radar.

In late April, Russia announced an agreement to build a naval base in Sudan. If built, Russia’s naval assets would be in a position to disrupt the critical shipping route from Asia to Europe through Egypt's Suez Canal.

Moscow could deploy "all sorts of war-fighting capabilities," Rebekah Koffler, a US military intelligence analyst, told Fox News Digital. The facility will serve as a "logistics hub for weapons transfers, storage of military hardware, ammunition," she added.

Russia could potentially disrupt NATO allies' supply chains in a conflict. The Yemen-based, Iranian-backed Houthi militants have adopted this approach in the Red Sea since late 2023. Houthi attacks led to a 72% decline in traffic through the Suez Canal over one year, ending November 2024.

NATO Relies On Critical Raw Material For AI Push

Shipments from Southeast Asia, where nations like Taiwan supply most semiconductors vital to these AI systems, suffered from the attack. Transit times from Asia to the Atlantic coast of the US increased by 47%, while transports to Europe took 33% longer.

The alliance is "actively searching for ways to mitigate potential disruptions" to its integration of these advanced platforms, the NATO experts said. It has increased the "resilience of critical infrastructure" and "the responsiveness, strength, resilience and security of supply chains."

More broadly, NATO is tapping AI for combat readiness.

"Imagine a future where #AI empowers @NATO forces with unprecedented speed, precision & insight," NATO Allied Command Transformation posted on its X account. "From digital assistants to boosting intelligence & AI-enabled wargaming, @NATO_ACT is integrating AI across #NATO to ensure faster, smarter & more resilient defense."

For Professor Mamediieva, this is a smart move. "Ignoring AI's growing role in warfare would be a mistake" even though fully autonomous AI systems "have yet to materialize on the battlefield," she said.

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