Palantir Technologies has been at the centre of discussion since it was listed on the New York Stock Exchange on September 30, 2020. The software company, which was founded in 2003 by four entrepreneurs Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp, has had its share price surge from $11 to $25 in a few weeks.
Palantir’s shares have further surged to now $36.25 following its partnership with tech giant International Business Machines (IBM), a move that has been applauded by investors.
The partnership of these two companies will see the merging of hybrid cloud, artificial intelligence, data processing, and operational technology into a new product for business clients called Palantir for IBM Cloud Pak.
IBM Senior Vice President of Cloud and Data Rob Thomas had this to say about the partnership:
“Now we can go to any customer in the world, and they can quickly get into production using AI. And it’s easier than ever because Palantir brings a low code, no code, really easy interface that integrates right into Watson technology.”
Thomas said the partnership will help companies across different industries including retail, finance, health care, manufacturing, and aerospace successfully adopt and scale AI use in their business operations. For example, it can be used by retailers to analyse supply and demand trends, or by health care workers to combine data across different platforms.
This partnership represents IBM’s shift towards focusing on being a software company as Thomas highlighted:
“Working with business partners is a critical part of our current and future strategy, as we’ll see more and more revenue come through partnerships. This partnership is another good example.”
According to Yahoo Finance, Palantir’s Chief Operations Officer (COO) Shyam Shankar said that the partnership with IBM is the largest partnership they have ever done in the company’s 18 years of existence.
The partnership is set to extremely expand Palantir’s sales force reach s it is going to the company access to IBM’s commercial customers in 180 countries. As part of the partnership, Palantir is adopting IBM’s RedHat OpenShift, allowing it to run anywhere in the hybrid cloud.
“The partnership is focused on the commercial segment. And we’re very focused on how we can go after these joint customers together,” Shankar explained.
Palantir, which is backed by PayPal co-founder Peter Thiel, also holds dozens of government contracts and is currently working with the U.S. Department of Health and Human Services and the Centers for Disease Control (CDC) and Prevention to help predict COVID-19 outbreaks and assist with the vaccine rollout.
“We’re quite excited about what [this partnership] means in terms of being able to bring operational AI to frontline users, the folks who are providing the vaccines, who are doing the allocation, the folks on the factory floor who are managing the upheaval during COVID,” said Shankar.
Palantir, through its software, helps organisations and clients alike to organise all their data on one platform, which makes it easier for them to make decisions.
By the time of this writing, the company has over 125 customers that include financial services companies, government agencies, and departments.
Notable clients include the Federal Bureau of Investigation (FBI), the Central Intelligence Authority (CIA) in the US, and the National Health Service (NHS) in the UK, who have used its software to distribute Personal Protective Equipment (PPE) to frontline workers during the COVID-19 pandemic.
In the financial services field, hedge funds, banks, and financial services companies such as Morgan Stanley among others use Palantir’s software to help them with risk management.
The Denver-based company is scheduled to report quarterly financial results on Tuesday, February 16, 2021, and currently, it has a market capitalisation of $62.84 billion.
PS: Stock prices quoted herein can change any time.