By Mackenzie Tatananni
Palantir stock climbed in premarket trading Monday after the company said it expanded its partnership with the U.S. government to expedite software deployment and increase the use of its artificial intelligence technology.
Shares of Palantir rose 7.2% to $81.83, putting them on track for a record closing high and marking the largest daily percentage increase since Nov. 15, according to Dow Jones Market Data.
A one-year contract award, worth $37 million, establishes Palantir as the lead software integrator for the U.S. Special Operations Command's Mission Command System. It also paves the way for pilot projects involving Palantir's AI systems.
The collaboration is just the latest in a series of partnerships tailored to defense and national security.
On Friday, the Colorado company said it would work with Anduril, a military contractor that specializes in autonomous systems. The collaborators aim "to ensure that the U.S. government leads the world in artificial intelligence" by overcoming challenges with data retention and the large-scale processing of information.
"We will utilize Palantir's AI Platform $(AIP)$ to deliver a cloud-based data management and AI development capability that operates at the hyper-scale of commercial industry while meeting the unique requirements of national security," the companies said in a press release.
Also on Friday, Palantir unveiled a joint effort with Booz Allen Hamilton to "accelerate defense mission innovation."
Palantir has worked with the U.S. Army since 2008 and gets a significant portion of its revenue from federal agencies. Earlier this month, the company secured FedRAMP High Authorization for its entire product suite, allowing the government to use its systems in processing sensitive unclassified workloads.
Palantir also is a contender to join the Nasdaq 100 during its annual reconstitution, Barron's has reported. Any changes to the index will be announced on Friday.
As Palantir gained in premarket trading, competitors Snowflake and International Business Machines remained near the break-even line.
Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
December 09, 2024 08:51 ET (13:51 GMT)
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