One of the hottest stocks in the technology arena is data analytics and artificial intelligence (AI) specialist Palantir (PLTR 3.73%). While the company is experiencing unprecedented demand for its generative AI applications, Palantir quietly just announced another potential catalyst.
Earlier this month, Palantir gave investors a preview of its foray into virtual reality (VR) through such products as Palantir Mixed Reality. Although not a lot is known yet about Palantir's VR aspirations, the company has dropped some clues as to how its new products could be used.
Let's dig into how VR could play an important role for Palantir as it relates to AI and big data.
Image source: Getty Images.
What is Palantir Mixed Reality?
The first application launched on Palantir Mixed Reality is called Immersive Command & Control (IC2), which is aimed at "increasing situational awareness." But what does this mean?
The company posted a video to X (formerly Twitter) to show off how exactly mixed reality works. One of the more important things to point out is that Palantir Mixed Reality is not a headset. While developing a VR or augmented reality (AR) hardware device could be in Palantir's product pipeline, the mixed reality suite appears to be rooted in software. With that said, Palantir Mixed Reality has the capability to integrate with existing VR and AR headsets developed by Microsoft and Apple.
The demo for Palantir Mixed Reality shows how a military operator can use a VR headset and existing datapoints to build a three-dimensional graph of a particular operation. For example, operators who may not be on the battlefield directly can still have a detailed view and understanding of a specific situation and how to best address the end goal. Given the sensitivity around rescue missions, Palantir Mixed Reality could be a game-changer for both live and simulated military operations.
One can see that the end-user is able to visualize different parameters of a battlefield operation and see where vehicles such as drones or tanks may be located relative to a military base or group of soldiers. This view can help shift how a military commander may proceed with orders during a high-stress, intensive mission.
@PalantirTech announces, today, the Mixed Realty Service and the first Mixed Reality application built on the Ontology SDK. https://t.co/s7qTQjg5te
-- David Marra (@david_marra) October 9, 2023
How can mixed reality fit with AI?
To get a sense of how large this opportunity could be, multiple media outlets including The Washington Post have reported that the Department of Defense plans to spend up to $22 billion on augmented reality projects with Microsoft over the next decade.
To add even more color around the military's budget for AR and VR technology, the Department of Defense's website included the following note as it pertains to future budget requests:
With the investments we are making, the Army will train soldiers in simulated environments, where they can interact with and prevail against limitless threats and scenarios, enhancing preparedness from the smallest unit to the largest formation. The Army of 2030 will harness advances in virtual reality and simulation technology to train in more realistic environments at lower cost and with reduced risk to our forces.
Given Palantir's unique approach to creating software that can be used across multiple operating systems, the company could be a huge beneficiary of the military's exploration of AR and VR technology and simulated operations. Earlier this year, the company released a new product called Artificial Intelligence Platform (AIP). During the formal unveiling, Palantir demonstrated how AIP leverages the power of large language models.
For example, a military dispatcher notifies its chain of command about an unidentified vehicle that has been located near its base. Given this anomaly, it is thought that the vehicle could be potentially carrying harmful equipment. The dispatcher then asks a series of questions in AIP to get a sense of which adversaries may be present in the general vicinity. Subsequently, AIP is prompted to deploy a drone to capture imagery of the vehicle in question. After it is confirmed that the vehicle is a threat, AIP provides the dispatcher with several scenarios to mitigate risk.
I view the mixed reality service as yet another layer in Palantir's artificial intelligence (AI) foundation. And the combination of mixed reality and AIP could provide U.S. intelligence agencies and military operatives with a massive edge.
Should you invest in Palantir?
On the surface, I would say that mixed reality alone is not a reason to buy Palantir stock. However, when you take the broader picture into account, there is a lot to digest. While big tech counterparts such as Microsoft, Amazon, and Alphabet are pouring billions into applications created by OpenAI and Anthropic, Palantir is paving its own path.
The intersection of mixed reality and AI uniquely positions Palantir in the long and growing fabric of digital transformation. Palantir appears to be undeterred by big tech and is on a mission to demonstrate how robust its integrated suite of products and services is.
The release of AIP has been met with unprecedented demand and its new bootcamps could serve as a meaningful source of lead generation. I think that mixed reality provides Palantir with even greater differentiators over other competitors such as C3.ai that work closely with the defense sector.
A position in Palantir stock provides investors with exposure to the secular growth trends in areas such as VR, AR, AI, and big data. For all of these reasons combined, investing in the stock looks like a great opportunity.
