Data-analytics-software provider Palantir Technologies (PLTR) - Get Palantir Technologies Inc. Class A Report said Thursday that it signed a multiyear agreement to provide its foundry platform to the U.K.-based mining titan Rio Tinto (RIO) - Get Rio Tinto Plc Report.
Terms weren't disclosed.
The Denver company's shares recently were trading off 6.4% at $36.50. But that’s not necessarily a commentary on the Rio Tinto deal.
The shares have been caught up in the short-squeeze frenzy that has sent GameStop (GME) - Get GameStop Corporation Report to the stratosphere since Friday and roiled markets generally. Palantir stock has soared 48% in the past five days.
As for the agreement, “Palantir’s software will integrate raw data from a multitude of disparate sources into a representation of critical mining operations,” according to a Palantir statement.
“Rio Tinto will be able to make decisions and take actions using a single source of truth that combines operational and transactional data. This data resource will be available, with the necessary security and privacy controls, to its front-line and office-based workers.”
Specifically, Palantir said, the move "builds on a number of successful data-integration projects explored last year across various business units."
These include "transforming borates into a digital business across the value chain; connecting people with data in Rio Tinto’s underground operations; and assisting the company with the safety and well-being of its employees during the covid-19 pandemic.”
Rio Tinto called the partnership "an important step in our digital transformation; enabling fast-paced, forward-looking decision making across our operations, leading to improved results in safety, cost and production,” Chief Information Officer Fay Cranmer said.
Rio Tinto recently traded at $78.28, down 0.5%.