Palantir Technologies Inc. announced it will expand its work with the U.S. Army Research Laboratory to implement data and artificial intelligence (AI)/machine learning (ML) capabilities for users across the combatant commands (COCOMs) and strengthen the Palantir Government partnership.
The contract totals $99.9 million over two years.
This contract softens the worries about the Government revenue growth slowdown as exemplified by Q1 2022 earnings.
How The Palantir Government COCOM Partnership Started
Palantir first partnered with the Army Research Lab to provide those on the frontlines with state-of-the-art operational data and AI capabilities in 2018.
Palantir’s platform has supported integrating, managing, and deploying relevant data and AI model training to all Armed Services, COCOMs, and special operators. This extension grows Palantir’s operational RDT&E work to more users globally.
The original contrac was awarded in 2020. $91,176,844 firm-fixed-price contract for general research and development support of the Army Research Laboratory. The estimated completion date was set to Sept. 28, 2022.
“Maintaining a leading edge through technology is foundational to our mission and partnership with the Army Research Laboratory. Our nation’s armed forces require best-in-class software to fulfill their missions today while rapidly iterating on the capabilities they will need for tomorrow’s fight. We are honored to support this critical work by teaming up to deliver the most advanced operational AI capabilities available with dozens of commercial and public sector partners.”Akash Jain, President of Palantir USG.
By working with the U.S. Army Research Lab, integrating with partner vendors, and iterating with users on the front lines, Palantir’s software platforms will continue to quickly implement advanced AI capabilities against some of DOD’s most pressing problem sets.
“We’re looking forward to fielding our newest ML, Edge, and Space technologies alongside our U.S. military partners. These technologies will enable operators in the field to leverage AI insights to make decisions across many fused domains. From outer space to the sea floor, and everything in between.”Shannon Clark, Senior Vice President of Innovation, Federal
Palantir Government Relationship Versus Palantir Commercial Relationship
Currently, the Government accounts for over 55% of the revenue, however that number is shrinking rapidly as the growth of commercial customers is accelerating.
US Commercial grew a stunning 136% in Q1 2022 and it is a major expansion vector for the company. However, Government revenue is hard to discount since government contracts are especially sticky as we can see from this particular contract expansion. Government revenue thus forms a solid bedrock of cash flow fueling the operations and development of Palantir.