Software company Palantir (NYSE:PLTR) has had its ups and downs lately. However, today, it established a new partnership and sought to prove that it was part of the solution instead of the problem on artificial intelligence. That was enough for investors to put some fractional gains into Palantir’s stock.
Palantir established an agreement with Babcock International Group that would allow Babcock to put Palantir’s AIP to work, which is an “AI-enabled instance” of Palantir’s software. With Palantir AIP in place, Babcock will be able to better build solutions to targeted problems using available data as a foundation. Since Babcock is a defense firm, that allows Palantir AIP to connect to submarines, warships, and other military hardware as well, even up to and including supply chains for the care and feeding of these systems.
Beyond that, Palantir then stepped into a process that some question the need for. Palantir was one of the first firms to sign on to the White House’s non-binding agreement and commit voluntarily to the ethical use of artificial intelligence. Naturally, some would wonder why these “non-binding agreements” even exist; there are no real consequences for violating them aside from a potentially public loss of face. With Palantir already on the hook for having what’s been described as “racist” predictive policing software, could it do any less than sign on with this toothless agreement to protect itself and its brand image?
At any rate, analysts question the impact here as well. With three Buy ratings, five Holds, and six Sells in the mix, Palantir stock is considered a Hold by analyst consensus. Further, Palantir stock offers investors 15.16% downside risk thanks to its average price target of $13.32.