Pentagon · United Kingdom · Microsoft · Fortune Technology
Code Metal lands $80 million Pentagon agreement to modernize military wargaming
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Landing a defense contract has historically meant navigating layers of government bureaucracy, with proposals often taking years to turn into cash.
Key facts
- Code Metal—which builds AI-powered software to translate code across programming languages and verify that it works on different types of hardware—was valued at $1.25 billion in February, when it
- For startups like Code Metal—which employs 123 people—the challenge now is turning one-off opportunities, like the new $80 million Pentagon deal, into repeatable, expandable business
- The Boston-based firm landed an $80 million contract to modernize and AI-enable WarMatrix, the Department of War’s wargaming simulation environment, Fortune learned exclusively
- Among the 15 highest-valued defense-tech startups—including Anduril and Saronic—Pentagon contract spending tripled last fiscal year from 2022, The Wall Street Journal reported
Summary
The Boston-based firm landed an $80 million contract to modernize and AI-enable WarMatrix, the Department of War’s wargaming simulation environment, Fortune learned exclusively. “I have never seen them move this fast, and that’s been exciting,” CEO Peter Morales told Fortune, adding that after securing $17 million for the initial operating capability—the minimum version of the system that can be usefully deployed—they received the full funding as an Other Transaction Authority (OTA) agreement. Code Metal—which builds AI-powered software to translate code across programming languages and verify that it works on different types of hardware—was valued at $1.25 billion in February, when it secured its $125 million Series B, led by Salesforce Ventures. The deal comes as venture-backed companies race to turn investors’ enthusiasm for defense technology into actual government business.