# FAA prepares to award AI air traffic management contract to Air Space Intelligence over Palantir and Thales

> The FAA plans to award an AI air traffic contract to 150-person startup Air Space Intelligence, bypassing Palantir and Thales. The pending deal tests the firm's ability to scale.

- Type: AI news
- Page: https://completeaitraining.com/news/faa-prepares-to-award-ai-air-traffic-management-contract-to/
- Published: 2026-06-15
- Updated: 2026-06-15
- Author: Jeroen Erne
- Jobs: Management
- Reading time: 1 min

The Federal Aviation Administration is poised to award Boston-based Air Space Intelligence (ASI) a contract for an AI-powered air traffic management tool, bypassing software giants Palantir and Thales. This decision positions a 150-person startup at the center of a nationwide operational overhaul, marking a major shift in how the agency approaches its national airspace system modernization.

#### the smart system selection

The proposed system, dubbed SMART, serves as a central pillar of the FAA's modernization strategy. Sources familiar with the selection process indicate the award is not yet final and could still change. An FAA spokesperson said, "we haven't awarded anything yet, but look forward to awarding a contract soon." ASI did not respond to a request for comment.

#### scaling operational technology

The anticipated win represents a significant test for ASI's infrastructure. With just over 150 employees as of April, the company must scale its capabilities to meet strict federal requirements. This vendor choice signals that specialized technology can outcompete established enterprise software providers in complex government procurements, highlighting the growing role of [AI for Government](https://completeaitraining.com/tag/government/) in public infrastructure projects.

#### why this matters for management

Operations and technology leaders should note the FAA's willingness to bet on smaller, specialized vendors for critical infrastructure. When evaluating technology partners, management teams can view this procurement as evidence that domain-specific expertise often outweighs sheer corporate size in high-stakes implementations.

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