Code Metal, a Boston-based software unicorn, secured an $80 million contract from the Pentagon to modernize and AI-enable WarMatrix, the Department of War’s wargaming simulation platform, according to fortune.com. The deal was finalized in less than 12 months, a notably fast timeline for defense contracts. The initial $17 million funded the minimum operating capability, with the full amount provided under an Other Transaction Authority agreement.
CEO Peter Morales described the Pentagon’s rapid approval process as unprecedented, highlighting the speed with which the contract progressed. Code Metal specializes in AI-powered software that translates code across programming languages and verifies compatibility with different hardware. The company was valued at $1.25 billion in February after raising $125 million in a Series B round led by Salesforce Ventures, fortune.com reported.
This contract reflects a broader Pentagon initiative to update its decades-old software infrastructure with AI capabilities. WarMatrix supports military planners in running complex wargaming and analysis scenarios, and Code Metal’s modernization efforts are expected to enhance these analytical functions. The deal also signals growing government interest in venture-backed defense technology firms, as investors push for tangible government contracts.
Code Metal’s contract is part of a trend where the Department of War is accelerating investments in AI-driven defense software. The initial operating capability funded by the $17 million tranche will soon be deployed, marking a milestone in the Pentagon’s software modernization efforts, according to fortune.com.