It has been a great week for Palantir (NYSE:PLTR). PLTR stock is up by over 45% during the past five trading days due to the company reporting its fourth-quarter earnings. The big data analytics firm seeks to keep up the hot streak, as it announced a multi-year strategic partnership with Bapco Energies wholly-owned subsidiary Bapco Upstream this morning. The financial terms of the partnership were not immediately disclosed.
The partnership will span three years and will provide Bapco with access to Palantir’s Foundry and Artificial Intelligence Platform (). Bapco will use the platforms to become more efficient by maximizing its energy production return on investment in the Kingdom of Bahrain.
“Bapco Energies is positioning itself at the forefront of the AI revolution in energy production,” said co-founder and CEO Alex Karp. “We are proud of this partnership, which will enable Bapco Upstream to boost output, improve efficiency, and meet Bahrain’s energy goals.”
PLTR Stock: Palantir Announces Partnership With Bapco Upstream
Palantir has been involved with the energy sector for over a decade. Its AIP utilizes large-language models (LLM) under a data centralization process in order to increase efficiency across the entire value chain.
The partnership is also a win for the company’s strong commercial growth. During the fourth quarter, commercial revenue tallied in at $284 million, up by 32% year-over-year, while U.S. commercial revenue grew by 70% to $131 million. Total revenue was $608 million, up by 20% YOY.
For the entire year of 2023, commercial revenue increased by 20% to $1 billion. U.S. commercial revenue reached $457 million, up by 36% YOY. Finally, total revenue tallied in at $2.23 billion, an increase of 17%.
Shareholders were able to breathe a sigh of relief after earnings, as a major concern for Palantir was that it was not getting enough commercial demand. Following earnings, it’s evident that the company is taking full advantage of the AI revolution.
At the same time, the commercial growth wasn’t enough to satisfy research firm William Blair’s Louie DiPalma. The analyst believes Palantir’s commercial growth is unsustainable, while he was also unimpressed with the company’s government revenue growth rate.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.