Palantir's U.S. commercial revenue overtakes U.S. government revenue

Ondas and Palantir on Monday, Oct. 12, announced Regna AI, a standalone private company expected to help customers develop and deploy mission-specialized, fine-tuned AI models within their own sovereign environments.^{1, 3} Regna is built on Palantir's Artificial Intelligence Platform, but the equity sits with Ondas, which bootstrapped the company and initially owns all of it.^1–2 Palantir will provide model-training infrastructure and support delivery.¹

In a letter to stockholders, Ondas Chairman and Chief Executive Eric Brock said Ondas expects, over time, to engage financial partners to support Regna's growth as an independent company.^1–2 Operating expenses for further sovereign AI development are expected to move to Regna, reducing Ondas's ongoing investment in that work, he wrote. He said he believes Ondas's ownership will "unlock substantial embedded equity value" as the platform gains customers.²

Ondas will also be Regna's first customer, deploying fine-tuned models to run autonomous mission orchestration on the edge.¹ Regna builds on SkyWeaver C4I, an existing Ondas-Palantir collaboration.^1–2 Palantir's March announcement of its partnership with Ondas and World View, a high-altitude balloon intelligence, surveillance and reconnaissance (ISR) company, described SkyWeaver as bringing data processing and model inference onto World View's Stratollite.^4–5

Brock said he believes Regna can become "a foundational AI platform" for the U.S. Department of War, allied governments and the defense and industrial companies that serve them. Beginning with ISR, Regna plans to expand into other mission areas and into security, critical infrastructure and industrial markets. Neither the release nor the letter gives an investment amount or names who will run Regna.¹

The Army has made initial awards for the warfighting applications in Next Generation Command and Control (NGC2), which it is moving from division-level prototyping to delivery at I Corps.^1–2 The awards, with an initial collective one-year value of approximately $93.6 million, went to General Dynamics Mission Systems, Air Space Intelligence Federal, Immersive Wisdom, LMI, Mente Systems, Stilman Advanced Strategies, Onebrief, Rune Technologies and AIR.¹ AIR was formerly Govini, Breaking Defense reported.³

The awards add to the software that Anduril, Palantir, Raft and Striveworks provide for the NGC2 data layer and core artificial intelligence capabilities.¹ According to Breaking Defense, the Army named Anduril in June to lead the common data layer baseline, with support from Palantir and Raft. On Monday, Anduril announced a $162.8 million initial base period for its early NGC2 work, Breaking Defense reported. The company said options could take the total to $1.8 billion over five years.³

A year of prototyping with I Corps' 4th and 25th Infantry Divisions informed the software capabilities and requirements to scale across the force. The Army says the NGC2 ecosystem will provide tools across six warfighting functions, from fires and intelligence to protection.¹ What the nine companies' applications will do is less clear. According to Breaking Defense, an Army spokesperson declined to describe their specific tasks, citing security concerns. Speaking generally, the spokesperson said they will support planning and course-of-action analysis, airspace management and deconfliction, and sustainment management and decision support.³