Shares of BigBear.AI (NYSE:BBAI) are up more than 50% on the day, with volume spiking to 212.44 million, as compared to its daily average volume. All thanks to a new contract with the U.S. Department of Defense’s Chief Digital and Artificial Intelligence Office (CDAO).
Key Points About This Article
- Shares of BigBear.AI (BBAI) are up more than 50% thanks to a new contract with the U.S. Department of Defense’s Chief Digital and Artificial Intelligence Office (CDAO).
- AI recently appointed Kevin McAleenan as its new CEO – the former Acting Secretary of the U.S. Department of Homeland Security.
- President Trump’s AI executive order gives BigBear.AI a sizable boost, too.
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Under the terms of the deal, BigBear.AI will support the CDAO and the Office of the Secretary of Defense by “leveraging custom AI models to better assess news media originating in countries that are potential foreign adversaries,” according to its press release.
That should help build on its existing work with the military and other federal agencies, including a new Indefinite Delivery/Indefinite Quantity (IDIQ) contract under the U.S. Department of Navy’s SeaPort Next Generation program.
BigBear.AI Just Appointed a New CEO
Adding even more fuel to the BBAI fire, the company just appointed Kevin McAleenan as its new CEO – which is a big deal. After all, McAleenan was the former Acting Secretary of the U.S. Department of Homeland Security under the first Trump administration.
That’s substantial. For one, the company now has a CEO who held a U.S. Acting Secretary Role for Homeland Security. And two, with a good relationship with the Trump administration, BBAI could have an inside track to even more government contracts.
Helping even more, analysts at H.C. Wainwright just raised their price target to $7 – which is more than double its prior target of $3. All thanks to BigBear.AI’s ability to draw revenue from a range of clients, most notably the federal government.
It’s Also Climbing on President Trump’s AI Order
BigBear.AI is also getting a boost from President Trump’s looser artificial intelligence regulations. In fact, shortly after taking office, Trump revoked a 2023 mandate that was designed to have greater control of the AI industry.
According to Reuters, the former order “required developers of AI systems that pose risks to U.S. national security, the economy, public health or safety to share the results of safety tests with the U.S. government, in line with the Defense Production Act, before they were released to the public.”
Once described by Trump as hindering “AI innovation and imposes onerous and unnecessary government control over the development of AI,” as quoted by The White House. The new order under Trump now “calls for departments and agencies to revise or rescind all policies, directives, regulations, orders, and other actions taken under the Biden AI order that are inconsistent with enhancing America’s leadership in AI.”
All of which is great news for booming stocks, like BigBear.AI.
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