December 10, 2025
Back to all stories

Navy launches Rapid Capabilities Office, funds AI Ship OS

Navy Secretary John Phelan on Tuesday in Washington announced the creation of a Rapid Capabilities Office to speed weapons and shipbuilding programs and revealed a $448 million award to deploy an AI-enabled logistics and manufacturing platform, 'Ship OS,' across U.S. shipyards. Phelan said the Navy must 'act like we’re at war' to overcome submarine backlogs and shipyard bottlenecks as China scales AI-driven production; Ship OS will start in the submarine industrial base and expand to carriers and other platforms.

U.S. Navy Defense Industrial Base U.S.–China Military Competition

📌 Key Facts

  • Navy established a Rapid Capabilities Office to cut development timelines and enforce program accountability.
  • A $448 million award will stand up 'Ship OS' to push AI tools into public and private shipyards, starting with submarines.
  • Phelan warned of China’s AI-enabled shipyards and cited urgency to overhaul U.S. acquisition; he met with Palantir CEO Alex Karp about the rollout.

📊 Relevant Data

As of 2024, China's navy operates 234 warships (manned, missile- or torpedo-armed ships or submarines displacing more than 1,000 metric tons), compared to the US Navy's 219 warships under the same criteria.

Unpacking China's Naval Buildup — CSIS

Approximately 70% of Chinese warships were launched after 2010, compared to about 25% of the US Navy's warships.

Unpacking China's Naval Buildup — CSIS

China launched 23 destroyers between 2014 and 2024, while the US launched 11 operational destroyers in the same period.

Unpacking China's Naval Buildup — CSIS

The US Virginia-class submarine program is producing at a rate of 1.2 submarines per year, below the necessary cadence of two per year.

The Navy's Virginia-Class Submarine Program Is Falling Apart — National Security Journal

China's navy is expected to grow to 395 ships by 2025 and 435 ships by 2030, while the US Navy's fleet is projected to shrink to 285 ships in 2025.

Report to Congress on Chinese Naval Modernization — USNI News