Palantir is rolling out its first two artificial intelligence-enabled systems to the U.S. Army, the company said Friday.

The Tactical Intelligence Targeting Access Node systems, or TITAN, acts as a mobile ground station that harnesses AI to collect data from space sensors to assist soldiers with warfare strategy and improve strike targeting and accuracy, according to Palantir.

President and Chief Technology Officer Akash Jain called the agreement a “leapfrog moment” for the U.S. Army as it makes a big investment in software during an interview with CNBC’s Morgan Brennan.

Palantir won the $178 million contract last March, beating out competitor and defense giant RTX Corp. It marked a key milestone for the company known for its data analysis and software services, as well as the first time a software company has worked as a primary contractor for a significant hardware program.

The company has long provided solutions to U.S. government and defense agencies, showing 45% year-over-year growth in that segment last quarter. The agreement with Palantir also underscores the shifting landscape of software use on the battlefield. Earlier this week, Scale AI announced a deal with the Department of Defense for a flagship AI agent program.

The agreement includes a total of 10 Titan systems. Each system includes an advanced system with two larger trucks and a basic system with two vehicles delivered over five delivery orders, Jain explained. The systems allow soldiers to make intelligence decision without requiring the cloud, putting “all that power in the back of a truck,” he added.

Palantir also joined forces with Northrop Grumman, L3Harris and Palmer Luckey-founded defense tech startup Anduril Industries on some capabilities for the program.

The news from Palantir comes during a volatile period for the 2024 S&P 500 frontrunner. Shares have lost more than one-fourth of their value over the last month as risk-off sentiment hits Wall Street and the buzzing tech sector. Last month, shares jumped 24% to a record high after the company reported strong earnings and guidance fueled by AI demand.

Palantir has been a prime beneficiary of the AI tailwinds that have swept the broader industry and market, jumping 340% last year. The company’s CEO, Alex Karp, has been a vocal proponent of investing in the U.S. tech sector to protect against adversaries.

In response to DeepSeek’s sudden rush onto the tech scene in January, Karp told CNBC’s Sara Eisen that the U.S. needs an “all-country effort” to protect American innovation from getting stolen and misused.

Jain told CNBC that Palantir has been harnessing soldier feedback as it works to deliver the systems on time and on budget.

— CNBC’S Morgan Brennan contributed reporting