Palantir Technologies CEO Alex Karp walks to a morning session at the Allen & Company Media and Technology Conference in Sun Valley, Idaho, USA, Wednesday, July 10, 2024.
David Paul Morris | Bloomberg | Getty Images
Palantir shares were up about 6% on Thursday morning after the company announced it was partnering with Microsoft to sell secure cloud, analytics and artificial intelligence capabilities to U.S. defense and intelligence agencies.
Palantir works closely with governments to provide services such as software that visualizes military locations, and the partnership will see it roll out its Gotham, Foundry, Apollo and AIP products on Microsoft's government cloud offerings.
Palantir reported results earlier this week and raised its full-year revenue guidance to $2.74 billion-$2.75 billion from $2.68 billion-$2.69 billion, beating LSEG's consensus forecast of $2.7 billion.
Chief Executive Officer Alex Karp said in a letter to shareholders at the time that revenue from its U.S. government business, which includes intelligence and defense agencies, exceeded $1 billion for the first time in the past 12 months. The company generated 54% of its second-quarter revenue from government customers.
Microsoft said the partnership will enable US defense and intelligence agencies to build AI tools for things like planning and logistics.
Palantir, co-founded by billionaire Peter Thiel, will work with Microsoft to offer trial services and training sessions.
Palantir shares are up about 60% since the beginning of the year.
Subscribe to CNBC on YouTube.
