The U.S. Department of Defense (DoD) is pushing deeper into AI by signing agreements with major tech companies, such as Alphabet (GOOGL), Microsoft (MSFT), Amazon (AMZN), Nvidia (NVDA), Oracle Corporation (ORCL), SpaceX, OpenAI, and Reflection AI. These deals give the military access to advanced models while spreading the work across multiple partners, which could support long-term demand across the sector.
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New trading tool for AMZN bullsInterestingly, the Department said that these tools will be used in highly sensitive classified environments known as Impact Level 6 and 7. This rollout supports its overall AI strategy, which now covers warfighting, intelligence, and internal operations. So instead of small pilot programs, AI is becoming part of the military’s core infrastructure, as demonstrated by its internal GenAI.mil platform that has already been used by over 1.3 million personnel.
However, not every company is fully on board. For instance, Anthropic has pushed back on giving the DoD full access to its models, which led to an ongoing dispute. In fact, Anthropic’s tools were previously among the few used in classified settings through Palantir Technologies (PLTR). As a result, officials have made it clear they will work with multiple providers rather than rely on one.
Which AI Stock Is the Better Buy?
Turning to Wall Street, out of the AI stocks mentioned above, analysts think that ORCL stock has the most room to run. In fact, ORCL’s price target of $244.21 per share implies almost 42% upside potential.
