Software giant Microsoft Corporation MSFT and Big Data specialist Palantir Technologies Inc. PLTR have announced an expanded partnership to deliver superior AI and analytics capabilities to the U.S. defense and intelligence community.

What happened: The companies on Thursday announced a unique technology suite that will leverage Microsoft’s large language models through the Azure OpenAI service within Palantir’s AI platforms in Microsoft’s government and classified cloud environments.

Palantir’s suite of products, including Foundry, Gotham, Apollo and AIP, will be deployed in Microsoft Azure Government and the Azure Government Secret and Top Secret clouds. Palantir will also be an early adopter of Azure’s OpenAI service in Microsoft’s Secret and Top Secret environments.

Shyam SankarChief Technology Officer at Palantir, said the integration of Palantir and Microsoft’s capabilities into the national security system represents a significant shift in supporting defense and intelligence agencies.

Deb CuppPresident of Microsoft Americas, also noted that the expanded partnership “will accelerate the safe and responsible delivery of advanced AI capabilities to the U.S. government.”

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The companies plan to offer boot camps for the defense and intelligence community to test the technology. The availability of the services is subject to approval and accreditation by the relevant government agencies.

Why it is important: This partnership follows Palantir’s recent initiatives to strengthen American industry and defense. Recently, Palantir unveiled a new software platform called “Warp Speed” designed to revitalize American manufacturing. The platform was unveiled by Sankar, who highlighted the company’s long-term investments in foundational technologies for enterprise AI during a second-quarter conference call.

In early May, Palantir’s CEO said Alex Karp stressed the importance of strengthening defense technology, including software-defined weapons systems, to deter potential adversaries, saying this approach could prevent a potential war with China.

Price promotion: On Thursday, at the time of writing, Palantir was trading 2.74% higher at $27.04 after closing at $26.32 on Wednesday, while Microsoft was trading 0.19% higher at $399.20 after closing the previous day at $398.43, according to Benzinga Pro.

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Photo by Spyro the Dragon on Shutterstock

This story was created with Benzinga Neuro and edited by Pooja Rajkumari