Palantir will begin training Nvidia's AI models for the U.S. government. Its stock price rose.
Palantir and Nvidia will deploy AI on the U.S. government's private networks / Photo: slyellow / Shutterstock.com
Palantir, a developer of software for military and civilian applications, announced the launch of a new initiative in partnership with Nvidia: the company will create specialized AI models for the U.S. government. To this end, Palantir plans to use Nvidia’s AI ecosystem and the Nvidia Nemotron large language model. Palantir’s stock rose by nearly 3%.
In such projects, Palantir’s software acts as an operational layer between AI models and government data: it helps deploy models on private networks, control access to systems, fine-tune AI for specific tasks, and track how those tasks are being carried out. Palantir had previously worked with AI from Anthropic as well—before the Pentagon severed ties with the AI startup.
"Combining Palantir's infrastructure with Nvidia's Nemotron AI will enable the U.S. government to unlock the full potential of large language models, while simultaneously addressing fundamental security risks and legitimate concerns that third-party AI models might retain or absorb classified U.S. government data,” Palantir CEO Alex Karp said in a press release.
In recent years, Palantir has secured several major contracts with U.S. government agencies—from the Army to the Internal Revenue Service, as Barron’s notes. This is also not the first time Palantir has partnered with Nvidia, but the announcement came at an opportune moment for Palantir investors, the publication notes.
After three consecutive years of strong growth, the software developer’s stock fell 34% in 2026 amid the “software apocalypse.” Investors fear that the widespread adoption of AI could undermine the business of software companies. In recent weeks, pressure on Palantir investors has intensified: shares fell 25% during a seven-day losing streak that ended only on Friday, June 26. During that time, the stock fell to $107.3, its lowest level since May of last year. “Palantir shares may have bottomed out after Thursday’s close,” Barron’s noted.
During Monday's trading session, Palantir shares jumped more than 5% to $119 apiece; they later slowed their gains slightly and were up nearly 3% at the time of publication. The software developer’s stock is showing this momentum following a 5.3% gain on Friday.
This article was AI-translated and verified by a human editor
