SpaceX Teams Up with Palantir to Target Lockheed’s Share of the $850B Pentagon Pie

Palantir is having a year… and by year, we’re talking a wet dream inducing 376% surge in its stock price. If you’re thinking the stock might be overvalued, you’re not alone. But there’s a new development that might make you rethink that stance.

The data giant, now showing off a market cap of $169 billion, has officially outgrown its scrappy underdog image. It’s stepping directly into the ring with long-time defense veterans like Lockheed Martin and Raytheon. And just when you thought the story couldn’t get any bigger, Palantir is gearing up for its most captivating move yet: joining forces with some of Silicon Valley’s most powerful names to form a consortium that could change the defense industry as we know it. Here’s what makes this next chapter so intriguing.

Palantir and Anduril (both named after fancy swords from Lord of the Rings because why not) are assembling a squad to take on the old guard of defense contracting. Think of it as Silicon Valley’s ultimate power play, with big names like SpaceX, OpenAI, Scale AI, and autonomous shipbuilder Saronic coming together to claim their chunk of Uncle Sam’s $850 billion defense budget. The goal here is clear as mud: To shake up the $850 billion defense budget and challenge the decades-long dominance of traditional players like Lockheed Martin and Raytheon.

These plans are already in motion (and no, it’s not just a PowerPoint presentation). Palantir’s AI Platform has been integrated with Anduril’s Lattice software, creating a powerful system for AI-driven national security solutions. This partnership aims to tackle modern threats with speed and precision (unlike the bureaucratic slog of deploying tanks that take longer to arrive than your Amazon package). It’s a shift away from the rusty, slow-moving systems of yesterday toward something a bit more 21st century.

This consortium is gunning to dismantle the oligopoly of “prime” contractors that have dominated U.S. defense for decades. Lockheed and Raytheon might have built the F-35, but tech companies are bringing smaller, smarter, and more affordable autonomous systems to the table. Oh, and did I mention that Elon Musk’s SpaceX is likely onboard? Musk has been vocal about cutting back on Pentagon spending… and who’s going to argue with the guy who put a car in space?

The stakes are bigger than ever. Geopolitical tensions with China, the war in Ukraine, and escalating conflicts in the Middle East have sent defense spending into overdrive. Investors are pouring cash into this space, betting that the future of war is less about steel and more about silicon (because apparently, chips are the new bullets). This isn’t Palantir’s first day at school with government contracts. For two decades, they’ve been securing deals everytime you turn around. But now, they’re playing at a new level. By joining forces with Anduril and others, Palantir is positioning itself as the de facto tech leader in defense innovation.

The stock market seems to agree. Palantir’s shares just joined the Nasdaq 100, hit an all-time high of $80.69, and like I mentioned earlier, are up 376% year-to-date. For context, that’s more than triple what Tesla gained during its glory days. Sure, some skeptics think Palantir’s valuation is loftier than Elon’s aspirations to live on Mars, but everytime the skeptics come out of their caves, Palantir seems to secure another huge contract.

P.S. ICYMI, Prospect Capital CEO John F. Barry just threw down $8.58 million like it’s pocket change to snag 2 million shares of his own company… while the stock’s hanging out near its 52-week low. This power move increases his already ridiculous stake to almost 80 million shares. Oh, and did we mention the 12.6% dividend yield? Yeah, Barry’s either a genius or has the confidence of a guy who knows something the rest of us don’t (I think you know the answer). Want the inside scoop on moves like this? Click here to unlock our Insider Activity Tracker with Stocks.News premium… because if you can’t beat ’em, you might as well follow their trades.

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