The company announced a groundbreaking partnership with another artificial intelligence giant.
Shares of Palantir Technologies (PLTR 11.25%) started on Thursday with a price increase of up to 11.6%. At 2:47 p.m. ET, the stock was still up 10.3%.
The catalyst that drove the artificial intelligence (AI) and data mining specialist upwards was the announcement of the collaboration with the software titan Microsoft (MSFT 1.07%) to advance the US government’s AI systems.
Two of the biggest names in AI join forces
In a press release Thursday, Palantir announced a significant expansion of its existing partnership with Microsoft to develop advanced AI systems for U.S. agencies. The announcement said the pair will “provide the U.S. defense and intelligence community with some of the most advanced and secure cloud, AI and analytics capabilities.”
The collaboration will include a “best-in-class integrated technology suite” that leverages Microsoft’s cutting-edge Large Language Models (LLMs) using Azure cloud infrastructure and OpenAI services, and combines these capabilities with Palantir’s Artificial Intelligence Platform (AIP). Palantir will also deploy its AI platforms Foundry, Gotham and Apollo in the Microsoft Azure Government, Government Secret and Top Secret clouds.
Military Bootcamp
One of the more interesting parts of the announcement was that Palantir would also offer bootcamps for government agencies testing the technology.
Palantir’s AIP has been a resounding success since its launch early last year, but it’s the company’s boot camps that have really boosted adoption of the technology. In these sessions, Palantir engineers work side-by-side with users to develop specific solutions to real-world problems.
A good comparison is the famous quote: “Give a man a fish and he will eat for a day. Teach him to fish and he will eat for a lifetime.” Palantir uses its bootcamps to teach its customers how to fish and thus enable them to develop AI solutions that they can use.
Earlier this week, Palantir reported overwhelming results, attributed to the rapid adoption of AIP and the success of its bootcamp strategy.
While this announcement is not groundbreaking in itself, it is further proof that Palantir’s AI strategy is bearing fruit.
Danny Vena has positions in Microsoft and Palantir Technologies. The Motley Fool has positions in and recommends Microsoft and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
