03:38 PM EDT, 08/08/2024 (MT Newswires) -- Palantir Technologies ( PLTR ) and Microsoft ( MSFT ) said Thursday they are expanding their partnership to offer various cloud, artificial intelligence and analytics services to the US defense and intelligence communities.

Palantir's ( PLTR ) Foundry, Gotham, Apollo, and AI Platform products will be deployed in the Microsoft Azure government, as well as the Azure government secret and top secret clouds. The partnership will see Palantir ( PLTR ) become "an early adopter" of Azure's OpenAI service in Microsoft's ( MSFT ) secret and top secret environments, the companies said. OpenAI, the company behind generative AI chatbot ChatGPT, is backed by Microsoft ( MSFT ).

By combining their respective technologies, Palantir ( PLTR ) and Microsoft ( MSFT ) will help operators build AI-driven operational workloads, including logistics, contracting, prioritization and action planning, according to a joint statement.

"Bringing Palantir ( PLTR ) and Microsoft ( MSFT ) capabilities to our national security apparatus is a step change in how we can support the defense and intelligence communities," Palantir ( PLTR ) Chief Technology Officer Shyam Sankar said.

The company's shares were up nearly 11% in Thursday late-afternoon trade, while Microsoft ( MSFT ) rose 1.7%.

The partnership will help accelerate "the safe, secure, and responsible deployment of advanced AI capabilities" for the government, said Microsoft Americas President Deb Cupp.

Palantir ( PLTR ) and Microsoft ( MSFT ) said they will run boot camps for the defense and intelligence communities. "Availability of the services is subject to completion of authorization and accreditation by appropriate government agencies," the companies said in the statement.

On Monday, Palantir ( PLTR ) raised its full-year revenue outlook after logging stronger-than-expected second-quarter financial results amid growth across the commercial and government markets. The software maker's trailing 12-month revenue in its US government business topped $1 billion for the first time ever, Chief Executive Alex Karp said at the time in a shareholder letter.

Last month, Microsoft ( MSFT ) posted stronger-than-expected fiscal fourth-quarter results, though intelligent cloud revenue missed Wall Street's views.

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