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Palantir surges on partnership with IBM, COO says the tie-up is its largest

Alexis Christoforous
·Anchor
·3 min read
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Shares of Palantir (PLTR) surged nearly 6% Monday as investors applauded the software company’s partnership with IBM (IBM).

It will merge hybrid cloud, artificial intelligence, data processing, and operational technology into a new product for business clients called Palantir for IBM Cloud Pak.

“Now we can go to any customer in the world, and they can quickly get into production using AI,” Rob Thomas, IBM’s senior vice president of cloud and data told Yahoo Finance Live in the exclusive interview above. “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 analyze supply and demand trends, or by health care workers to combine data across different platforms.

“There's no question that this is the largest partnership that we've done,” Palantir’s COO Shyam Shankar told Yahoo Finance Live.

The partnership will dramatically expand the reach of Palantir’s sales force while giving the data analysis software 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,” said Shankar.

A person poses in front of a banner featuring the logo of Palantir Technologies (PLTR) at the New York Stock Exchange (NYSE) on the day of their initial public offering (IPO) in Manhattan, New York City, U.S., September 30, 2020. REUTERS/Andrew Kelly
A person poses in front of a banner featuring the logo of Palantir Technologies (PLTR) at the New York Stock Exchange (NYSE) on the day of their initial public offering (IPO) in Manhattan, New York City, U.S., September 30, 2020. REUTERS/Andrew Kelly

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 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.

Shares of Palantir have more than quadrupled since going public on the New York Stock Exchange in September. The Denver-based company is scheduled to report quarterly financial results Feb. 16.

It also represents IBM’s shift towards focusing on being a software company.

“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,” said Thomas. “This partnership is another good example.”

Alexis Christoforous is an anchor on Yahoo Finance. Follow her on Twitter @AlexisTVNews.

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