Shares of military AI developer Palantir Technologies fell by 7.5% in trading on October 3 after Reuters published a report about a vulnerability in the NGC2 (Next Generation Command and Control) military communications system. The system of communications between units using artificial intelligence and cloud computing was developed by Anduril under a contract with the Defense Ministry, with Palantir and Microsoft acting as subcontractors in the project.

The Reuters story was based on a September 5 internal U.S. Army memorandum in which Army Cyber Command experts expressed serious concerns about the level of cyber protection of the NGC2 prototype communications system. According to the document, the system was vulnerable to internal threats, external attacks and data breaches, and had "critical weaknesses" in basic security mechanisms, procedures and management.

Following the Reuters publication, Palantir told Bloomberg that the problems mentioned in the article had already been fixed and also clarified that "no vulnerabilities have been identified in the Palantir platform." Anduril also reacted to the article. "The recent publication describes the outdated state of the project, not the current situation," Bloomberg quoted a company statement as saying. - NGC2 goes through a normal phased development cycle: we identify risks early, address them promptly and strengthen the system before it enters service." The U.S. Army also confirmed that it has eliminated critical vulnerabilities in the communications system under test.

Friday's fall in Palantir shares became the most serious since August. The company's shares were the worst in the S&P 500 index for the day, notes Bloomberg. Quotes of other technology companies also fell on Friday amid reports about possible layoffs of civil servants at the initiative of the White House, the agency notes.

This article was AI-translated and verified by a human editor

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