Feb 3 (Reuters) - Palantir Technologies ( PLTR )

forecast first-quarter and annual revenue above Wall Street

estimates on Monday, betting on robust demand for its software

and data analytics services from companies doubling down on

generative AI adoption.

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.