What happened

Shares of General Electric (GE 1.09%) climbed on Wednesday after the industrial giant announced a strategic partnership with Altair (ALTR -4.83%). As of 2:55 p.m. EST, GE's stock price was up more than 5%.

So what 

As part of the deal, Altair purchased Flow Simulator from GE Aviation. The simulation and artificial intelligence technology provider will further the development of Flow Simulator's software, which helps to optimize the design of fluid systems and machines. GE will have access to Altair's full suite of software, and the two companies will work together to explore new use cases and the possibility of additional joint ventures.

A person is pointing to an upwardly sloping stock chart.

General Electric's share price popped on Wednesday. Image source: Getty Images.

"We value our strong relationship with GE Aviation as we join forces to drive innovation for aircraft engines and beyond," Altair CEO James Scapa said in a press release. "Utilizing Altair's simulation and AI-driven approach to innovation, there is great potential to expand Flow Simulator's capabilities and make it available to new industries focused on simulating systems models including automotive, electromobility, battery, defense, and renewable energy."

Now what

Analysts are growing more positive about GE's turnaround strategy. On Monday, Goldman Sachs analyst Joe Ritchie reiterated his buy rating on GE's stock and lifted his price forecast from $14 to $15. Ritchie highlighted GE's efforts to bolster its balance sheet and improve its free cash flow generation. If the industrial conglomerate can continue to make progress in this regard, more gains could lie ahead for investors.