GE Aerospace (GE) and Palantir (PLTR) Extend AI Deal for U.S. Air Force Readiness

TLDR

• GE Aerospace and Palantir Technologies announced a multi-year expansion of their existing military aviation partnership
• The deal targets military aircraft readiness for the U.S. Air Force using AI-powered tools
• The partnership originally started in early 2024 with a focus on the T-38 trainer jet’s J85 engine
• Palantir’s AI Platform is now deployed across GE Aerospace’s wider production system, including supply chain, MRO, and new engine production
• Analysts at Bernstein and Morgan Stanley both hold bullish price targets on GE, at $405 and $425 respectively

GE Aerospace (GE) and Palantir Technologies (PLTR) have expanded their multi-year partnership to bring AI deeper into U.S. military aviation. The deal aims to keep more aircraft in the air and reduce the manual work that slows down military operations.

GE Aerospace, GE

The two companies first teamed up in early 2024, initially piloting a sustainment workflow around the J85 engine used in the Air Force’s T-38 trainer jets. That pilot gave both GE Aerospace and the Air Force better visibility into parts demand and supply shortages.

Since then, the scope has grown. Palantir’s Artificial Intelligence Platform now runs across select supply chain functions at GE Aerospace — covering fulfillment, sourcing, allocation, maintenance, repair, and customer service.

The goal is straightforward: predict failures before they happen, unlock gridlocked supply chains, and create a direct feedback loop from the flight line to the supplier.

“By integrating data across the enterprise and applying AI to predict demand and identify constraints earlier, our collaboration with Palantir is helping our customers keep more aircraft available so airmen get the training required to execute on their mission,” said Amy Gowder, president and CEO of Defense and Systems at GE Aerospace.

Mike Gallagher, Head of Defense at Palantir, echoed that, saying the focus is on unifying data to maintain aircraft availability and pilot training.

The expanded partnership now covers GE Aerospace’s broader production system — sustainment, MRO operations, and new engine production are all in scope.

GE Aerospace manages a global base of roughly 50,000 commercial and 30,000 military aircraft engines, with about 57,000 employees worldwide. That’s a lot of moving parts that can benefit from better data.

AI Takes Over the Repetitive Stuff

One of the core aims of the Palantir platform is freeing up GE’s workforce to focus on actual problem-solving. AI agents handle the manual, repetitive tasks — the kind of work that bogs down operations and slows response time.

That’s a practical shift in how defense manufacturing runs day to day, not just a flashy tech announcement.

Analyst Sentiment Remains Positive

GE Aerospace has been drawing attention from Wall Street beyond just this deal. Bernstein SocGen Group raised its price target on GE to $405 with an Outperform rating, pointing to expected growth in widebody services and engine shop visits.

Morgan Stanley initiated coverage with an Overweight rating and a $425 price target, citing GE’s positioning in aerospace and defense.

The company also declared a quarterly dividend of $0.47 per share, payable in April 2026.

Separately, GE Aerospace secured a $12.4 million contract with Kratos Defense & Security Solutions to design an engine for the U.S. Air Force.

The company also plans to invest up to $300 million in Singapore over the next five years, focused on engine repair capabilities using advanced automation and AI — backed by the Singapore Economic Development Board.

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