The company announced a groundbreaking partnership with another artificial intelligence bigwig.
Shares of Palantir Technologies (PLTR 10.87%) charged out of the gate on Thursday, surging as much as 11.6%. As of 2:47 p.m. ET, the stock was still up 10.3%.
The catalyst that sent the artificial intelligence (AI) software and data mining specialist higher was the announcement that it would collaborate with software titan Microsoft (MSFT 1.12%) to advance U.S. government AI systems.
Two of the biggest names in AI pair up
In a press release on Thursday, Palantir announced a significant expansion of its existing partnership with Microsoft to develop advanced AI systems for U.S. government agencies. The announcement said the pair will “bring some of the most sophisticated and secure cloud, AI, and analytics capabilities to the U.S. Defense and Intelligence Community.”
The collaboration will involve a “first-of-its-kind, integrated suite of technology” that will tap Microsoft’s state-of-the-art large language models (LLMs) using its Azure Cloud infrastructure and OpenAI services, combining those capabilities with Palantir’s Artificial Intelligence Platform (AIP). Palantir will also deploy its Foundry, Gotham, and Apollo AI platforms into Microsoft Azure Government, Government Secret, and Top Secret clouds.
Military boot camp
One of the more intriguing parts of the announcement was that Palantir would also provide boot camps to government agencies that trial the technology.
Palantir’s AIP has been a rousing success since its introduction early last year, but it was the company’s use of boot camps that really helped the adoption of the technology take off. In these sessions, Palantir engineers work side by side with users to develop specific solutions to real-world problems.
A good analogy is the well-known quote: “Give a person a fish, they eat for a day. Teach them to fish, and they eat for a lifetime.” Palantir uses its boot camps to teach customers to fish, enabling them to develop AI solutions they can use.
Earlier this week, Palantir reported blockbuster results fueled by the rapid adoption of AIP and the success of its boot camp strategy.
While this announcement itself isn’t groundbreaking, it adds to the mounting body of evidence 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.