U.S. Government Actively Backing These 2 AI Stocks in 2025

As the U.S. government races to modernize its operations with artificial intelligence, it is turning to a select group of private-sector partners. While a wide range of companies are vying for federal contracts, two in particular are emerging as key players: Palantir Technologies (PLTR) and BigBear.ai (BBAI). Both are capitalizing on the massive, multi-billion-dollar shift toward using AI for national security, defense, and public services.

Palantir Technologies: The AI Darling of the Government
Palantir has long been a major partner for the U.S. government, providing its powerful data analytics software to the military and intelligence communities. However, the company’s influence is growing exponentially in 2025 with the adoption of its new Artificial Intelligence Platform (AIP).


AIP allows government agencies to use generative AI to make sense of vast and complex datasets. This technology is being used to provide real-time battlefield intelligence, as well as to streamline operations across various departments.

In 2025, Palantir has won several high-profile deals:

Department of Defense (DOD): A multi-million dollar contract extension to enhance its relationship with the DOD and expand the use of its AI-powered systems.

U.S. Army: A separate deal with the U.S. Army is reportedly worth up to $10 billion over the next 10 years, cementing Palantir’s role as a long-term defense partner.

Civilian Agencies: Palantir is also expanding its reach into civilian agencies, with ongoing work with Immigration and Customs Enforcement (ICE) on a new AI-powered platform for its operations.

The company’s ability to secure these massive, multi-billion dollar contracts reinforces its position as the go-to AI provider for the federal government.

BigBear.ai: The Niche Player with Growing Influence
While not as large as Palantir, BigBear.ai is rapidly carving out a significant role for itself in the public sector. The company specializes in providing a variety of AI-driven solutions to government and intelligence agencies.


BigBear.ai’s success in 2025 is driven by a series of targeted contract wins:

DOD: The company secured a contract to help the DOD with national security decision-making by using AI to analyze foreign media.

Joint Chiefs of Staff: A multi-million dollar contract to provide data analytics and force management capabilities, demonstrating the government’s trust in its specialized AI solutions.

U.S. Customs and Border Protection: The company is also working with Customs and Border Protection to deploy its biometric AI infrastructure at major North American airports, with the goal of improving security and streamlining passenger arrivals.

While BigBear.ai's contracts are smaller in scale than Palantir's, the company's steady stream of victories across different federal agencies signals its growing importance in the AI ecosystem. For investors, BigBear.ai represents a promising growth story as it continues to expand its footprint in the public sector.