What happened
Contract extensions usually aren't very exciting. But that isn't the case if you're an investor, your company has a nearly $9 million deal with a very large and very reliable client, and that arrangement wins an extension.
That's what happened this week with "decision intelligence" specialist BigBear.ai (BBAI 8.43%). As a result, the company's share price was nearly 26% higher week-to-date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.
So what
Before market open on Monday, BigBear.ai announced that it had received a six-month extension to its contract with the U.S. Army. The company, which harnesses artificial intelligence (AI) and machine learning to help organizations make optimal decisions for their activities, is the prime contractor in the arrangement.
The contract covers work on the Army's Global Force Information Management (GFIM) system.
In the Army's words, this system "allows senior leaders and combatant commanders to make data-driven force structure decisions faster and with confidence in order to man, equip, train, ready and resource" its units.
BigBear.ai said the extension is valued at slightly over $8.5 million. It also represents a new, third phase of the cooperation between the company and the Army.
Now what
Although BigBear.ai is benefiting from the investor craze for all things AI just now, its solutions aren't consumer-friendly like those of ChatGPT developer OpenAI. Rather, it focuses on assisting large organizations, with an emphasis on the defense and intelligence fields. It's obviously doing something right if the Army wants to continue its current project, and is willing to pay almost $9 million to do so.
