News

Salesforce buys defense firm Rune to grow $5.6B military arm

What's the deal? Salesforce agreed on October 29 to acquire Rune Technologies, a defense software startup, to expand its Missionforce business serving the US military and government agencies. Terms were not disclosed. The deal is expected to close in the fourth quarter of Salesforce's fiscal year 2027.

What does Rune do? It makes AI-powered software that helps troops forecast supply needs, plan resource use, and decide where to send them — including in places with little or no network connection. The US Army and US Marine Corps already use its technology.

Why now? A year after launching Missionforce, Salesforce says the unit is growing 80% year over year, with customers across all six branches of the US military. In January, the Army awarded the company a 10-year contract with a $5.6 billion ceiling, though that figure is not guaranteed spending.

What's the endgame? Salesforce has been buying its way deeper into AI as investors worry fast adoption could erode demand for traditional software. It agreed to buy marketing software maker Braze for about $5.66 billion last week, struck a $3.6 billion deal for AI agent platform Fin this year, and paid $8 billion for Informatica last year.

The signal: The deal reflects a wider military shift toward AI-enabled software, a space where Palantir has also secured major defense work. Undisclosed terms make the financial stakes hard to assess, but the strategic intent is clear: Salesforce wants a bigger role in defense.

Read more: channelnewsasia.com

Image credit: Generated with Gemini

More top stories