Shares of Palantir Technologies (NYSE:PLTR) popped on Monday after the data analytics company announced a partnership with IBM (NYSE:IBM). As of 2:30 p.m. EST, Palantir's stock price was up more than 7% after rising as much as 15.2% earlier in the day.
Palantir will integrate its application-building tools with IBM's hybrid cloud platform. The collaboration is intended to help companies more easily create and implement artificial intelligence (AI)-powered apps that can help them make better use of their data. Palantir and IBM plan to launch the product in March.
Roughly three out of four businesses are either already implementing AI into their operations or are evaluating how to do so, according to a recent IBM-sponsored survey. Yet 37% of these companies noted that their limited AI capabilities are slowing their adoption of the game-changing technology. Palantir and IBM's new solutions are designed to meet this growing need for application-development tools that can be used by customers with minimal programming knowledge.
"Our clients deliver products and services while operating in some of the most complex, fast-changing industries of the world," IBM Senior Vice President Rob Thomas said in a press release. "Together, IBM and Palantir aim to make it easier than ever for businesses to put AI to work and become data-driven throughout their operations."
Palantir's deal with IBM comes on the heels of its expanded partnership with BP (NYSE:BP). Palantir will help BP accelerate its digitization initiatives as it strives to achieve net-zero emissions by 2050.
"We started this company to work on the hardest problems," Palantir Chief Operating Officer Shyam Sankar said in a press release announcing the deal. "Helping deliver energy more safely and efficiently, in a disrupted market, while supporting the transformation of a business the size and scale of bp, is exactly what we built this platform to do."
With Palantir ramping up its efforts to expand further into the private sector, investors should expect the data analytics specialist to announce more partnerships in the weeks and months ahead.