Palantir has been working with BP since 2014, with Palantir saying that its data analytics software "has been a key accelerant in BP's digital transformation." The new deal commits BP to use Palantir's tools for an additional five years.
Terms of the contract were not disclosed, but Palantir described it in the statement as a "multimillion-dollar deal." It said that BP in the past has used its software to enhance hydrocarbon workflows, and is now seeking to apply the tech to optimizing wind farms, electric charging networks, solar generation, and other green activities.
Palantir is best known as a government contractor. Its data analytics tools have been used by a variety of military and spy agencies, and were credited for helping in the search for Osama bin Laden.
The company went public late last September, and the stock has shot 260% higher in the months since, giving Palantir a valuation of more than 50 times expected 2020 sales. It is unlikely that growth in its government business can justify such a valuation anytime soon, so commercial revenue growth is an important part of the bull case for the 17-year-old company.
The deal is the latest in a number of Palantir's new contract announcements. The company in late January announced a multiyear agreement with Rio Tinto (RIO -3.32%) to use its software to help manage Rio's sprawling mining operations.