WASHINGTON, Oct 28 (Reuters) - Nvidia ( NVDA ) and

Palantir Tech ( PLTR ) on Tuesday announced a deal in which

Palantir ( PLTR ) will tap Nvidia's ( NVDA ) chips and software to help its

customers speed up decision making in complex fields such as

logistics.

Well-known as a defense contractor, Palantir's ( PLTR ) shares have risen

this year, driven by increased defense spending on its

military-grade AI tools. But the Denver-based company is also

pursuing corporate customers, where its platform can ingest data

from many different corporate systems, such as staffing and

inventory software, to give executives a real-time view of

business performance.

Under the deal struck Tuesday and announced at a conference in

Washington, Nvidia's ( NVDA ) software will be available on Palantir's ( PLTR )

platforms. The two said they would help companies with logistics

problems, such as when shipments of products from Asia to the

U.S. are delayed by storms.

Nvidia ( NVDA ) technology can generate potential new shipping routes

around the storms and its AI agents can then compare multiple

options based on product costs and customer demand in different

regions to help select the best one.

"Because of the speed that you do these optimizations, you

can then run them hourly to re-optimize your supply chain and

rethink changes," Justin Boitano, vice president of enterprise

AI at Nvidia ( NVDA ), told Reuters in an interview.

The companies did not disclose the financial terms of the

deal.

Kevin Kawasaki, global head of business development at

Palantir ( PLTR ), said that AI systems on their own can struggle to

understand vast streams of corporate data. Palantir's ( PLTR ) systems

organize the data streams to reflect business conditions in a

way that both humans and AI systems powered by Nvidia ( NVDA ) can use.

"It's got to be tethered in reality," Kawasaki told Reuters,

referring to how AI systems can help in decision making. "It's

not overly predictive, so much as it's just it's very good at

recognizing the present. And that's when you can start making

better next-second decisions."