Palantir, Anduril's battlefield communication system has issues, says Army memo: report (Update)

[Palantir Technologies headquarters campus exterior view in Silicon Valley. - Palo Alto, California, USA - 2019]
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The modernization of the U.S. Army's battlefield communications network being undertaken by Anduril, and Palantir Technologies (NASDAQ:PLTR [https://seekingalpha.com/symbol/PLTR]) among others, has "fundamental security" issues and vulnerabilities, and should be treated as a "very high risk," Reuters reported, citing an internal Army memo.

Shares of Palantir fell about 5% on Friday.

A September memo from the Army's chief technology officer about the NGC2 platform that connects soldiers, sensors, vehicles and commanders with real-time data indicates some issues with the initial product, according to the report [https://www.reuters.com/business/aerospace-defense/anduril-palantir-battlefield-communication-system-has-deep-flaws-army-memo-says-2025-10-03/].

"We cannot control who sees what, we cannot see what users are doing, and we cannot verify that the software itself is secure," said the memo.

"As Army’s Chief Information Officer Mr. Leo Garciga stated publicly, the security review process during the experimental phase of NGC2 functioned as designed, with findings “mitigated immediately” prior to field integration with the first division-level event, which proceeded successfully without delay," said a Palantir spokesperson in an emailed statement to Seeking Alpha.

"Palantir’s software, which maintains Impact Level 5 and 6 authorizations, provides the Army with visibility to rapidly conduct comprehensive security assessments across the NGC2 ecosystem. No vulnerabilities were found in the Palantir platform," the Palantir spokesperson added.

The Department of War and Anduril did not immediately respond to a request for comment from Seeking Alpha.

The assessment, seen by the media outlet and first reported by Breaking Defense, comes months after Anduril was awarded $100M to create a prototype of NGC2 with partners including Palantir, Microsoft (MSFT [https://seekingalpha.com/symbol/MSFT]) and several smaller contractors.

The Army should treat the NGC2 prototype version as “very high risk” due to the “likelihood of an adversary gaining persistent undetectable access," wrote Gabrielle Chiulli, the Army chief technology officer authorizing official, according to the report.

Despite the early September memo, Leonel Garciga, Army chief information officer and Chiulli's supervisor, said in a statement to Reuters that the report was part of a process that helped in "triaging cybersecurity vulnerabilities" and mitigating them, the report noted.

In March, the 4th Infantry Division used the system in live-fire artillery training at Fort Carson, Colorado, in an exercise Anduril described as showing faster and more reliable performance than legacy systems.

The Army memo identifies some security gaps. It said that the system allows any authorized user to access all applications and data regardless of their clearance level or operational need. Due to this, "any user can potentially access and misuse sensitive" classified information, the memo states, with no logging to track their actions, the report added.

Other deficiencies include, the hosting of third-party applications that have not undergone Army security assessments. One application found 25 high-severity code vulnerabilities. Three additional applications under review each consist more than 200 vulnerabilities requiring review as per the memo.

_Update: The story was updated with a statement from Palantir._

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