From the battlefield to the factory, Palantir is going on an AI offensive

Palantir‘s valuation exploded in 2024, fueled by growing investor confidence in its AI strategy and a wave of new client activity. 

Initially known for data processing platforms in the defense and government sectors, Palantir has now embedded AI into its core products — AIP, Foundry, Gotham, and Apollo — to provide analytics and intelligence solutions across industries including automotive, defense, healthcare, manufacturing, and supply chain.

We analyzed Palantir’s investments, partnerships, and product moves since Q1’23 using CB Insights data to identify the 4 key areas driving its next chapter of growth — and the companies it’s aligning with to get there.

Here are 3 key takeaways from our analysis:

1. Palantir is positioning itself as the orchestration layer between models and data. Rather than building its own foundational models, Palantir is embedding itself between model developers and sensitive enterprise data through deep integrations across the AI stack.
2. Palantir is prioritizing domain-specific AI over general-purpose models. The company is focusing on tailored, industry-specific AI agents that can serve secure, high-stakes environments more effectively than generalized models.
3. Palantir is accelerating its defense strategy while expanding its US-centric commercial strategy. Its most significant recent activity has been in defense, where it’s building next-gen military tech and infrastructure — while continuing to prioritize US government and commercial contracts over global expansion.