Somewhat over 10 years in the past, I had a curious encounter on the metro in Washington, D.C., that ended up altering my life.
Whereas mindlessly scrolling on my iPhone to go the time, I seen a person cruising on his laptop computer within the seat throughout from me. He was carrying a black winter beanie that mentioned “Palantir” on it. Inquisitive about what it may imply, I went onto Google and looked for Palantir.
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Unbeknownst to me, Palantir Applied sciences (NYSE: PLTR) was an information analytics software program developer specializing in protection know-how for the U.S. army. From that second on, I continued monitoring Palantir over time and was significantly excited when the corporate lastly went public again in late 2020.
Quick-forward a couple of years, and now Palantir has emerged as a serious drive throughout the synthetic intelligence (AI) realm. Under, I’ll break down how AI is making waves within the protection sector and why I see Palantir as a no brainer inventory to observe because the army doubles down on protection tech.
In relation to AI, you most likely take into consideration functions associated to office productiveness, robotics, and even drug discovery capabilities. The refined factor about use instances like these is that they are typically considered in a constructive gentle. In different phrases, folks get pleasure from speaking about them and subsequently they find yourself getting a number of protection.
The protection business is totally different. Whereas it is fairly well-known that authorities contracting is a gigantic enterprise, I believe it is honest to say that most individuals attempt to chorus from speaking concerning the enterprise aspect of the army. However the reality of the matter is that the federal authorities (together with the Pentagon) has most of the identical wants and ache factors as a personal company. Similar to any group, protection companies preserve observe of budgets, endure lengthy and strict procurement processes, and have to observe issues similar to headcount and stock.
Throughout occasions of geopolitical unrest, the significance of cybersecurity and information evaluation turns into much more pronounced — because it’s mission-critical to offer the instruments required to make knowledgeable selections shortly and effectively. And that is the place Palantir enters the image.
Throughout a lot of 2024, Palantir has quietly introduced quite a few massive contract wins with the Division of Protection (DOD). Megacap tech behemoths Amazon and Microsoft have seen Palantir’s sturdy presence throughout the protection sector, and each corporations have built-in Palantir’s Synthetic Intelligence Platform (AIP) with their respective cloud infrastructures, Azure and Amazon Internet Companies (AWS). These partnerships are centered on enhancing safety protocols throughout the DOD.