Anduril and Palantir battlefield communication systems deemed 'very high risk' by US Army memo

Anduril and Palantir battlefield communication systems deemed 'very high risk' by US Army memo

The US Army has designated the battlefield communication system being developed by Anduril Industries and Palantir Technologies (PLTR) as "very high risk" due to serious security vulnerabilities. This revelation, reported by Reuters and cited in an internal Army memo, highlights significant concerns over the security of the $100 million prototype system .

The NGC2 platform, the Army's next-generation battlefield communications network, is designed to allow users access to sensitive data without proper clearance or activity tracking. According to the memo, the system lacks the ability to control who sees what, monitor user activities, and verify software security . This has raised alarms within the military, as such vulnerabilities could potentially allow adversaries to gain persistent undetectable access to critical information.

Despite the concerns, the Army's Chief Information Officer, Leonel Garciga, stated that the memo is part of a process to "triage" and address these vulnerabilities. The memo, however, underscores the urgent need for rigorous security assessments and robust mitigation strategies to ensure the integrity of the communication system.

This development comes as both Anduril and Palantir have secured Pentagon contracts for their advanced solutions, promising faster, cheaper, and more advanced solutions than traditional defense suppliers. The $100 million contract for the NGC2 prototype was awarded in July to Anduril, Palantir, and several smaller contractors .

The security concerns have not yet significantly impacted the stock prices of either company. Palantir shares were down 3.9% around midday, while Anduril's stock performance is not explicitly mentioned in the provided materials. However, the revelation underscores the critical importance of security in the defense sector and the potential reputational and financial risks associated with such vulnerabilities.