Nanadini Roy Choudhury, writer
Brief news
Palantir’s shares rose by 6% after announcing a partnership with Microsoft to provide secure cloud and AI capabilities to the US defense and intelligence communities. The collaboration will allow Palantir to introduce its products on Microsoft’s cloud platform for government agencies. Palantir also raised its annual revenue forecast to a range of $2.74 billion to $2.75 billion. The partnership will enable US defense and intelligence organizations to develop AI tools for action plans and logistics. Palantir’s shares have increased by 70% year-to-date.
Detailed news
Following the announcement of a partnership with Microsoft to provide the U.S. defense and intelligence communities with secure cloud, analytics, and artificial intelligence capabilities, Palantir’s shares increased by approximately 6% on Thursday morning.
Palantir, which collaborates with governments to offer software that enables the visualization of army positions, among other services, will leverage the partnership to introduce its products, including Apollo, AIP, Foundry, and Gotham, on Microsoft’s cloud platform for government agencies.
Palantir’s annual revenue forecast was expanded from $2.68 billion to $2.69 billion to a range of $2.74 billion to $2.75 billion with the release of its earnings earlier this week. This exceeded the consensus estimate of $2.7 billion from LSEG.
At the time, CEO Alex Karp announced in a letter to shareholders that the company’s trailing 12-month revenue in its U.S. government division, which encompasses intelligence and defense agencies, had surpassed $1 billion for the first time. During the second quarter, the organization reported that government clients accounted for 54% of its revenue.
Microsoft stated that the partnership would enable U.S. defense and intelligence organizations to develop AI tools for action plans and logistics, among other things.
Peter Thiel, an entrepreneur, co-founded Palantir, which will collaborate with Microsoft to offer trial services and training sessions.
Shares of Palantir have increased by approximately 70% year-to-date.
Source : CNBC News
