According to a foreign news channel, Microsoft stopped providing updates support for the operating system more than a year ago and was one of the most widely used Windows edition.
The computers using Windows XP are prone to malware and viruses. However, Microsoft is still providing the updated facilities for companies and agencies that are paying cash to the tech-giant.
Microsoft has released Windows Vista, Windows 7, Windows 8 and is set to launch Windows 10 soon.
US Navy expects to upgrade its systems next year. However, the contracts stated that the agreements can be extended till 2017 which would increase their spending to nearly $31 million.
Spokesman for Space and Naval Warfare Systems Command Steven Davis has said that several of the applications used by the force is still relying on Windows XP and it will continue its services till they are modernized.
He added that all the computers being used on the surface have been upgraded but the systems used by the ships and submarines are lacking the modernized technology.
However, an agreement has been approved by the US Army for updating more than 8,000 computers that have Windows XP installed on them.
Nearly 15 percent of personal computers along with most of ATMs across the world are running on Windows XP.