Palantir Technologies (NYSE: PLTR) a publicly traded American firm specializing in big data analytics, has its headquarters in Denver, Colorado. It was established in 2003 by a group of individuals including Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp.
The company’s name is inspired by “The Lord of the Rings,” where the term “palantíri” referred to magical “seeing-stones,” described as unbreakable crystal orbs used for communication and observing events in distant parts of the world.
PLTR is renowned for three key projects: Palantir Gotham, Palantir Apollo, and Palantir Foundry. Palantir Gotham is employed by counter-terrorism analysts within the United States Intelligence Community (USIC) and the United States Department of Defense.
Why Palantir’s AI Strategy Is Genius
When discussing the realm of artificial intelligence (AI), Palantir is rapidly gaining recognition as one of the most widely discussed companies. Founded by Peter Thiel, this enigmatic data analytics enterprise seems determined to demonstrate that its AI capabilities can contend with industry giants like Microsoft, Alphabet, and Amazon.
Alex Karp, Palantir’s CEO, has been actively engaging with the media for several months, enthusiastically touting the company’s growth prospects. Demand generation in the world of business can take various forms, from referrals by existing customers to incoming leads.
Karp and his team are steadfastly committed to bolstering Palantir’s ecosystem as they strive to secure a larger share of the AI market.
In a recent development, the company unveiled an initiative known as the Artificial Intelligence Platform (AIP) Bootcamp. During this program, potential clients have the opportunity to identify a practical use case for Palantir’s products within just five days.
This initiative raises questions about why Palantir is showcasing such a program and how it might serve as an indicator of the company’s AI strategy.
Palantir promotes four fundamental software platforms, all deeply intertwined with AI services like machine learning and large language models (LLMs).
Earlier this year, the company introduced its latest offering, AIP, which harnesses generative AI applications to assist businesses in extracting crucial insights.
Since its commercial launch, Palantir’s leadership maintains that more than 100 enterprises are presently utilizing AIP, and the queue of potential clients is described as “unprecedented in the past two decades.”
Considering the substantial investments made by major tech companies in AI endeavors, it is safe to conclude that this cutting-edge technology sector holds immense potential.
However, investors should be mindful of certain factors before venturing into this stock.
Palantir Wins $250M U.S. Army Services Contract For AI
Palantir Technologies (PLTR) is poised to receive a significant boost from a newly awarded $250 million U.S. Army contract in the field of artificial intelligence. This development, which was announced on Tuesday, led to a surge in Palantir’s stock price on Wednesday.
An analyst, who maintains an underperform rating for PLTR stock, commented on the situation saying, “While this contract adds weight to the notion that Palantir operates more like a government service provider, it also holds promising implications for Palantir’s revenue in the fourth quarter and 2024.”
PLTR Stock: U.K. Contract Up For Grabs
The potential for a further upswing in PLTR stock exists if the company secures a new contract from the United Kingdom’s National Health System (NHS).
The NHS previously employed Palantir’s services during the height of the coronavirus crisis. Now, there’s a significant contract worth approximately $595 million up for contention, with a decision anticipated in 2023.
Palantir has a track record of utilizing AI tools in collaboration with government clients for purposes such as intelligence gathering, counterterrorism, and military applications. These AI tools heavily rely on pattern recognition to develop predictive models.
Notably, Palantir is presently incorporating generative AI into its software platform. Generative AI models operate by processing “prompts,” which can be descriptions of user intentions, such as internet search queries. These generative AI technologies autonomously generate text, images, video, and computer programming code in response to these prompts.
Palantir Stock: New AI Platform
Palantir has set its sights on the sale of generative AI products in commercial sectors, particularly in areas such as healthcare.
Earlier this year, Palantir unveiled its latest offering, the “Artificial Intelligence Platform” (AIP). By mid-September, the company reported that the AIP had garnered 150 users, marking a 50% increase in the past month.
Interestingly, Palantir has chosen not to disclose the pricing details for its generative AI products, leaving analysts uncertain about the potential revenue impact stemming from the AIP.
Palantir’s stock (PLTR) reached a 52-week intraday high of $20.24 on August 1, buoyed by the strong performance of AI stocks. However, as of September 27, PLTR stock has retreated from that 52-week high. Nonetheless, Palantir’s stock has recorded a substantial 124% gain in 2023.
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