Shares of BigBear.ai surged another 22% on Friday, boosting weekly gains to 95%.

The biggest news is that the decision-making AI company announced Wednesday that the Department of Defense Chief Digital and Artificial Intelligence Office (CDAO) had awarded the company a contract to further develop its Virtual Anticipation Network (VANE) prototype.

VANE will help the government use AI language models to more effectively evaluate the origins of news media in countries that are not allies of the U.S.

Ryan Legge, the company's president for national security, said in a press release:

We are honored to continue our support in the modernization of our nation's defense efforts. This award underscores the importance of leveraging cutting-edge AI technologies to address complicated geopolitical challenges. By advancing VANE within CDAO, we are arming our warfighters with sophisticated intelligence capabilities to leverage foreign insights critical to the safety of our Nation and those protecting it.

The new contract was well received by analysts. Cantor Fitzgerald significantly hiked its price target from $3.50 to $8 and raised its revenue estimates for the full year of 2025.

BigBear.ai also entered into a warrant exercise agreement on Thursday with an existing accredited investor that will result in the company getting gross proceeds of $21.9 million. The accredited investor will receive a new unregistered common-stock purchase warrant to buy up to another 3.77 million shares.