U.S. Government Backs AI Stocks Palantir and BigBear.ai in 2025

The U.S. government is doubling down on artificial intelligence, with Defense Secretary Pete Hegseth allocating increased spending toward the Software Acquisition Pathway (SWP). This initiative, first deployed in 2020, aims to streamline the delivery of secure software for federal use. Two companies stand out in this shift from hardware to software: Palantir Technologies and BigBear.ai.

Palantir, long a favorite in defense and intelligence circles, has secured multiple federal contracts in 2025. Its AI-powered platforms are now critical for data analytics, logistics, and cybersecurity across government agencies. BigBear.ai, meanwhile, is gaining traction with its decision-intelligence software, particularly in military logistics and autonomous systems.

Both firms exemplify the growing institutional adoption of AI beyond semiconductor and cloud infrastructure plays. Their government contracts signal a broader trend—enterprise-grade AI software is becoming indispensable for large-scale operations, whether corporate or federal.