Nvidia and Palantir Unveil Joint AI Stack for Supply Chain Optimization

Nvidia and Palantir have launched a new AI stack aimed at optimizing supply chains. The stack combines Nvidia's open Nemotron models and cuOpt optimization software with Palantir Foundry, AIP, and the Palantir Ontology to coordinate materials allocation from wafer to first token.

The system was tested on Nvidia's own Vera Rubin production line, which has a complex logistics problem due to its massive scale. The Vera Rubin ramp contains 1.3 million parts sourced from thousands of suppliers.

Nvidia CEO Jensen Huang described the supply chain as 'challenged' and said that the company expects supply constraints to extend through at least the end of fiscal year 2028. Nvidia is deploying the AI stack against its own bill of materials, which has a revenue opportunity per gigawatt of AI capacity valued at $40 billion.

The partnership validates Palantir's sovereign AI pitch and commercial engine, but raises questions about valuation and concentration for Palantir stock. The company trades at a P/E near 240 on a market cap of roughly $390.0B.