Code Metal has been awarded an $80 million Other Transaction Authority (OTA) contract by the U.S. Department of War to modernize its modeling and simulation ecosystem with artificial intelligence, the company said.
The contract will support WarMatrix, an AI-enabled modeling and simulation platform developed by Code Metal in partnership with the U.S. Air Force. The system is designed to bring AI capabilities to established defence simulation environments, including the Advanced Framework for Simulation, Integration, and Modeling (AFSIM), without requiring the underlying systems to be rebuilt from scratch.
The award comes as defence organisations seek to incorporate AI into operational planning and analysis while retaining confidence in software and models that have undergone years of testing and validation.
Modernising Existing Defence Systems
Code Metal’s approach centres on what it describes as “provable AI” technology. The company says its platform can mathematically verify that a model continues to behave consistently after it has been translated or transformed.
That capability is intended to address a central challenge in modernising military simulation systems: introducing new computing and AI capabilities without compromising the results or assumptions on which existing models have been validated.
The Department of War’s modelling and simulation infrastructure represents decades of development, testing and investment. Systems such as AFSIM are used to examine operational scenarios and support analysis, making wholesale replacement potentially costly and time-consuming.
Under the new contract, Code Metal will work to modernise those systems for AI while retaining their existing validation.
WarMatrix is intended to allow warfighters and planners to develop, evaluate and adapt courses of action in hours rather than months, according to Code Metal. Potential applications include operational planning, force design, mission engineering, campaign analysis and military education.
The platform is designed to bring models, simulations and AI tools together through a common environment, reducing the need for users to manage the underlying software complexity themselves.
AI Without Starting From Scratch
The contract reflects a broader tension in defence technology. Military organisations increasingly want to use AI to accelerate decision-making, but many of their most important systems are built on software developed and validated over decades.
Replacing those systems could mean repeating extensive testing and validation processes, while leaving them unchanged can make it harder to respond to increasingly complex operational requirements.
Code Metal’s strategy is to modernise existing infrastructure rather than replace it. The company says its technology allows AI systems to operate alongside established models while preserving their verified behaviour.
“National security is the most demanding proving ground there is,” Laura Shen, executive vice president of growth at Code Metal, said in a statement, pointing to similar modernisation requirements across the company’s work in defence, automotive, semiconductors and telecommunications.
Commercial Footprint Expands
The contract also extends Code Metal’s work with organisations operating mission-critical systems. Its customers include the U.S. Air Force, RTX (NYSE: RTX), Toshiba and L3Harris Technologies (NYSE: LHX), according to the company.
For the Department of War, the immediate focus will be on applying WarMatrix and Code Metal’s technology to established modelling and simulation infrastructure.
The $80 million award underscores the growing emphasis on adapting legacy defence technology for AI-era operations, while preserving the validation and institutional trust built around existing systems.
