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Palantir Soars on Artificial Intelligence Partnership With IBM

Palantir and IBM partner on a new product to help businesses deploy AI applications.

Data-analytics-software provider Palantir Technologies  (PLTR) - Get Palantir Technologies Inc. Class A Report said Monday it was partnering with IBM  (IBM) - Get International Business Machines Corporation Report on a new product to help businesses deploy AI applications. 

Shares of the Denver company were climbing 10.13% to $37.50 in premarket trading Monday. IBM was up nearly 1% to $122.95.

The product is intended to make it easier for businesses to build and deploy AI-infused applications with IBM Watson.

It also aims to help users access, analyze, and take action on the large amounts of data in hybrid cloud environments without the need for deep technical skills, the companies said in a statement.

The new product, Palantir for IBM Cloud Pak for Data, will be available next month.

Palantir also said it is adopting Red Hat OpenShift containerization software to run anywhere in the hybrid cloud. IBM was up nearly 1% to $122.70.

Nearly 75% of businesses surveyed in an IBM-sponsored report said they were exploring or implementing AI. However, 37% cited limited AI expertise and 31% noted increasing data complexities and silos as barriers to successful adoption.

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The new product will leverage Palantir Foundry and will integrate with IBM Cloud Pak for Data services, such as Watson, providing an information architecture that includes data and AI with built-in governance.

Palantir for IBM Cloud Pak for Data is intended to help businesses reduce data silos, integrate data sources across hybrid cloud environments, and govern data throughout the AI lifecycle.

As an example, Palantir and IBM said retailers often face challenges to deliver goods to customers due to fluctuating supply and demand.

The new program is being designed to provide retailers with increased levels of visibility and transparency by integrating data across their operational siloes and using that data to quickly build new AI models and applications. 

This can help retailers to simulate and predict customer behavior and continuously monitor the health of their supply chain to proactively address critical issues and adapt faster to changes in demand and supply.

The new product can also benefit the financial services, telecommunications, healthcare and other businesses.

Last month, Palantir said it had signed a multiyear agreement to provide its foundry platform to the U.K.-based mining titan Rio Tinto  (RIO) - Get Rio Tinto Plc Report

The company is scheduled to report earnings on Feb. 16.