The partnership between Palantir Technologies Inc. and Microsoft is a game-changer in the world of artificial intelligence. Palantir will integrate Microsoft’s large language models into its own AI platform for government and classified cloud environments.
This collaboration will enhance capabilities across various defense and intelligence operations. The AI industry is poised for explosive growth in 2024. Generative AI, which saw exponential growth in 2023, is expected to continue its upward trajectory.
Businesses are moving from pilot projects to extensive implementations to leverage AI for increased efficiency and cost reduction. The market for generative AI is forecasted to grow at a compound annual growth rate of nearly 60%, reaching about $37 billion by 2028. The healthcare sector alone is predicted to see significant advancements due to AI, with market expansion reaching around $188 billion by 2030.
Edge computing is another area set for substantial development.
Palantir’s integration with Microsoft’s AI
It is becoming critical for real-time data processing required by AI applications.
This evolution underscores the importance of a robust semiconductor supply chain amid global trade tensions and geopolitical challenges. The rapid integration of AI technologies into various aspects of society heightens the need for ethical considerations and responsible AI deployment. There are calls for clearer regulatory frameworks and guidelines to ensure responsible AI development and implementation.
Wall Street analysts have described the deal between Palantir and Microsoft as potentially transformative. Dan Ives of Wedbush has an “Outperform” rating with a $38 price target on Palantir’s shares. He noted that this marquee deal would likely accelerate the adoption of Palantir’s AI platform within the federal sector.
While Palantir Technologies Inc. shows tremendous promise as an investment, some analysts believe there are other AI stocks with potential for higher and quicker returns. Nevertheless, Palantir’s strategic partnership with Microsoft places it firmly on the map as a key player in the AI industry.
