(Reuters) -Data analytics firm Palantir ( PLTR ) forecast first-quarter and annual revenue above Wall Street estimates on Monday, betting on robust demand for its software from companies adopting generative AI, sending its shares up about 12% after the bell.

Businesses pushing to deploy the most sophisticated generative artificial intelligence tech have helped drive sales for Palantir's ( PLTR ) AI platform, AIP, which is used to test, debug code and evaluate AI-related scenarios.

The Denver-based company expects fiscal 2025 revenue between $3.74 billion and $3.76 billion, above the average analyst estimate of $3.52 billion, according to data compiled by LSEG.

Revenue is being driven by both new customers and the expansion of those customers with AIP, Palantir's ( PLTR ) Chief Revenue Officer Ryan Taylor told Reuters. The company's customer count grew 43% in the fourth quarter.

Chinese startup DeepSeek's AI models that it claimed can match or even outperform Western rivals at a fraction of the cost had stirred doubts about the United States' lead in the technology and the high costs of GenAI development.

Palantir ( PLTR ) would discourage its clients from using DeepSeek, Taylor said, adding that U.S. government customers would be unable to use the Chinese company's models.

Co-founded by billionaire Peter Thiel, Palantir ( PLTR ) derived more than 40% its fourth-quarter sales from the U.S. government but has been working to reduce its dependence on government spending.

Palantir ( PLTR ) expects revenue derived from companies in the U.S. to grow at least 54% in 2025 to more than $1.80 billion.

The company forecast March-quarter revenue between $858 million and $862 million, compared with estimates of $799.4 million.

Expanded tariffs ordered by U.S. President Donald Trump on Saturday could also help drive demand for Palantir's ( PLTR ) analytics services centered around supply-chain and logistics management, Taylor said.

On an adjusted basis, Palantir ( PLTR ) earned 14 cents per share in the fourth quarter, beating estimates of 11 cents.