Salesforce Outcompetes Palantir with Lower Prices and AI Solutions

Salesforce CEO Marc Benioff revealed that the company secured a US Army contract by outcompeting Palantir with lower prices and proven AI-driven solutions. Benioff attributed the win to Salesforce's competitive pricing, stating that its prices are "just so much lower." The Army contract marks a significant expansion for Salesforce's government business, which is already a multi-billion-dollar segment.

Salesforce CEO Marc Benioff announced that the company has secured a significant contract with the US Army, outcompeting rival Palantir. According to Benioff, Salesforce's competitive pricing was a key factor in winning the contract. The deal marks a substantial expansion for Salesforce's government business, which is already a multi-billion-dollar segment [1].

Benioff attributed the victory to Salesforce's ability to offer lower prices while delivering proven AI-driven solutions. He stated that Salesforce's prices are "just so much lower" compared to competitors like Palantir. The US Army contract is a significant win for Salesforce, as it further solidifies the company's position in the government sector [1].

This contract win comes at a time when Salesforce has been facing challenges in its revenue growth, which has stalled in the single digits since mid-2024. Despite these challenges, Benioff remains optimistic about the company's prospects, particularly in the realm of artificial intelligence. He highlighted Salesforce's AI agent product, which he believes is transforming businesses by offering capabilities beyond what competitors can provide [1].

Salesforce's success with the US Army contract aligns with the company's broader strategy to leverage AI and other innovative technologies to drive growth and efficiency. The company has also been reshaping its own business operations with AI agents, reducing the need for human support in certain areas [1].

The US Army contract is not the only recent win for Salesforce in the government sector. In a separate announcement, the General Services Administration (GSA) entered into a OneGov agreement with ServiceNow, which is expected to boost workflow efficiencies and deliver significant cost savings to the federal government [2]. This agreement is part of a broader effort to modernize government operations and enhance citizen services using AI technology.

The addition of AWE Network to Coinbase's asset roadmap further underscores the growing trend of institutional adoption of Layer 2 (L2) solutions in the blockchain ecosystem. By positioning AWE as a candidate for listing on its Base network, Coinbase is signaling confidence in the token's technical and economic model and reinforcing its broader strategy to dominate the institutional-grade blockchain infrastructure market [3].

In conclusion, Salesforce's recent contract win with the US Army, along with the broader trends in AI adoption and L2 solutions, highlights the company's strategic focus on innovation and competitive pricing. These developments are likely to shape the future of Salesforce's government business and its broader technological ecosystem.

References:
[1] https://www.cnbc.com/2025/09/03/salesforce-ceo-calls-guidance-appropriately-conservative-as-stock-declines-after-earnings.html
[2] https://www.gsa.gov/about-us/newsroom/news-releases/gsa-servicenow-strike-landmark-onegov-deal-09032025
[3] https://www.ainvest.com/news/coinbase-strategic-expansion-base-awe-token-catalyst-institutional-adoption-ethereum-layer-2-ecosystem-2509/