Software behemoth Microsoft Corporation (NASDAQ: MSFT) and big data specialist Palantir Technologies Inc. (NYSE: PLTR) have unveiled an expanded partnership. The collaboration aims to deliver superior AI and analytics capabilities to the U.S. Defense and Intelligence Community.
What Happened: The companies announced on Thursday a unique technology suite that will utilize Microsoft's large language models via Azure OpenAI Service within Palantir's AI Platforms in Microsoft's government and classified cloud environments.
Palantir's product suite, including Foundry, Gotham, Apollo, and AIP, will be implemented in Microsoft Azure Government and the Azure Government Secret and Top Secret clouds. Palantir will also be among the early adopters of Azure's OpenAI Service in Microsoft's Secret and Top Secret environments.
Shyam Sankar, Chief Technology Officer at Palantir, stated that the integration of Palantir and Microsoft capabilities into the national security system represents a significant change in supporting the defense and intelligence communities.
Deb Cupp, President of Microsoft Americas, also noted that the expanded partnership will "accelerate the safe, secure and responsible deployment of advanced AI capabilities for the U.S. government."
The companies plan to offer boot camp experiences for the Defense and Intelligence Community to test the technology. The services' availability is contingent upon the completion of authorization and accreditation by the relevant government agencies.
Why It Matters: This partnership follows Palantir's recent initiatives aimed at strengthening American industry and defense. Recently, Palantir introduced a new software platform, "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 earnings call.
Earlier in May, Palantir CEO Alex Karp emphasized the importance of bolstering defense technology, including software-defined weapons systems, to deter potential adversaries. He suggested that this approach could prevent a potential war with China.
Price Action: 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 the previous day's close at $398.43, according to Benzinga Pro.