AI firm defends its role in military tech after stock dip, calling Reuters report on system flaws outdated and misleading
Army Memo Raises Security Flags on NGC2
A September memo from the U.S. Army sparked concern over the Next Generation Command and Control (NGC2) system. Developed by Anduril Industries with Palantir and Microsoft as subcontractors, the memo cited vulnerabilities to insider threats, external attacks, and accidental data leaks. It also criticized the system’s security procedures and lack of oversight.
This revelation led to a notable drop in Palantir’s stock price, driven largely by media coverage from Reuters, which emphasized the system’s alleged weaknesses.
Palantir Responds: Issues Are Outdated and Resolved
In response, Palantir Technologies (PLTR) swiftly disputed the report’s framing. The company labeled the concerns as “outdated and inaccurate,” stating that no vulnerabilities were identified in its own platform. It asserted that the issues were resolved promptly by the Army.
Palantir emphasized that these types of early-stage discoveries are normal in defense technology development, aligning with comments from Army officials.
Army Leadership Confirms Normal Development Challenges
Lieutenant General Jeth Rey, head of the Army’s Network Cross-Functional Team, downplayed the alarm raised in the memo. Speaking with Breaking Defense, Rey stated that such risk assessments are part of integrating new and complex technology into military operations. According to him, the issues were identified, addressed, and closed out as expected.
Development Phase: Bugs Found, Bugs Fixed
Both Palantir and Anduril defended their work on NGC2, highlighting that the project is still in the developmental and testing phase. They described the process as a “find early, fix early” approach—common in military tech rollouts. Ensuring robust security measures before any field deployment is standard practice in programs of this scale.
The broader takeaway: early-stage criticism doesn’t necessarily signal long-term issues, but rather a functional development and review cycle.
Market Jitters Don’t Always Reflect Reality
While PLTR stock took a hit, the company’s rapid clarification may help stabilize investor sentiment. The situation underscores how quickly media reports and leaked internal documents can affect market perception, even when operational risks are well-managed behind the scenes.
