Palantir Wins $250 Million over 3 years AI Deal With US Defense Department

https://finance.yahoo.com/news/palantir-wins-250-million-ai-222730235.html

Palantir Technologies Inc. has won a $250 million contract with the US Defense Department to research and develop artificial intelligence and machine learning technology. The new three-year deal demonstrates the company’s closeness to the US government, as well as its growing presence at the intersection of AI and defense. Palantir’s shares, which have rallied this year on AI promises, rose 6% Wednesday following the announcement Tuesday. The deal for AI services will build on the work Palantir has been doing since at least 2018 for the Army Research Lab. Under the new contract, the company will “conduct research and development services” in AI and machine learning, according to the announcement. A Palantir spokesperson declined to provide additional details on the contract’s scope.

William Blair analyst Louie DiPalma said in a research note that the company’s latest deal isn’t likely to have a huge impact on its profit, particularly because services deals often have lower margins than software deals. But he also said the contract is a sign of the company’s closeness with the US and “bodes well” for its fourth-quarter and 2024 revenue growth.

I still dont know what they do but the US government must think they are doing a good job for such a deal to happen.