Palantir's Nvidia Partnership Raises Valuation Concerns
Palantir Technologies, an enterprise and government AI-software provider, deepened its partnership with Nvidia to develop AI-powered supply-chain systems.
The collaboration will pair Nvidia's Nemotron models with Palantir's data and software platforms, while Nvidia plans to deploy the technology inside its own operations.
The expansion comes as Palantir's growth accelerates, with second-quarter revenue surging 93% to $1.94 billion, including $764 million from its fast-growing U.S. commercial business.
However, the valuation leaves little room for ordinary execution, with Palantir's market value near 55 times its annualized run rate of roughly $7.76 billion in revenue.
The partnership still needs meaningful deployments and paying customers to justify the premium.