Secretary of the Navy John Phelan on Tuesday announced a $448 million investment in the Shipbuilding Operating System, or Ship OS, a software effort intended to expand the use of artificial intelligence and autonomy tools across the Navy’s shipbuilding industrial base.
Phelan made the announcement at the Department of the Navy Rapid Capabilities Office’s first Industry Day event, where he appeared with Palantir Chief Executive Officer Alex Karp. According to the Navy, Ship OS will use Palantir software to integrate modern data and production management practices into ship construction.
“This investment provides the resources our shipbuilders, shipyards, and suppliers need to modernize their operations and succeed in meeting our nation's defense requirements,” Phelan said. “By enabling industry to adopt AI and autonomy tools at scale, we're helping the shipbuilding industry improve schedules, increase capacity, and reduce costs. This is about doing business smarter and building the industrial capability our Navy and nation require.”
The program is managed by the Maritime Industrial Base Program in coordination with Naval Sea Systems Command. The Navy said the system will combine data from enterprise resource planning tools, legacy databases, and operational systems to identify production bottlenecks, streamline engineering work, and support risk mitigation.
Pilot efforts have produced early results, according to the department. At General Dynamics Electric Boat, Groton, Conn., schedule planning work for submarines dropped from 160 manual hours to under 10 minutes. Portsmouth Naval Shipyard, Kittery, Maine, reported material review timelines falling from weeks to under an hour.
The initial phase of the investment will target submarine shipbuilders, naval shipyards, and key suppliers. Expansion to surface ship programs will follow after the Navy evaluates the results and develops implementation approaches.
The department said it expects long-term cost savings tied to improved schedules, fewer delays, and higher production efficiency. Officials described the launch of Ship OS as a step in a broader effort to strengthen the maritime industrial base.
