Lookout Amazon and Google, because Microsoft’s Azure just got the Captain America treatment from our friendly neighborhood Palantir Technologies. According to Reuters, Palantir is partnering up with Microsoft to inject its cutting edge AI technology (think, ChatGPT on steroids) into Microsoft’s flagship Azure cloud computing services.

(Source: Bloomberg) 

Now, while that sounds like AI will be leveling up dramatically in the coming days, this new service is only reserved for government intelligence agencies to leverage during their top-secret-tasks. Meaning if you’ve pissed off Hilary Clinton recently, well… good luck. 

(Source: Giphy)

With that said, this comes right about the time Microsoft Azure has needed some kind of savior after its previous earnings results. If you recall, despite a 19% revenue boost to $28.5 billion in Q4, it still missed analyst estimates, leading to a -7.7% free fall in the stock. Fast forward today, Wall Street logic clearly sees this partnership as good news with Microsoft nudging +0.97% on the day. (+8.47% YTD).

(Source: IBD)

On the other hand, Palantir is adding to its shrine of green days as the stock has skyrocketed +8.43%, as Peter Theil’s brainchild continues to soar 72.17% YTD. So as we can all see, investors are loving this AI duo. 

(Source: Market Watch)

But in addition to only being reserved for the VIP table of America’s elite hierarchy, why is this groundbreaking for military operations? Well for starters, Palantir’s products, like Gotham and Foundry (which are basically AI generated crisis and decision acceleration systems for operators), will be integrated on Azure’s secure government clouds.

(Source: Fed Scoop)

Meaning this will allow defense and intelligence agencies to use AI tools not meant for us small folk, to run military operations smoother than a baby’s bottom. For instance, with highly advanced operating systems in their toolbelt, defense agencies will literally be able to visualize enemy positions and initiate strategic strikes far more efficiently than before. Think, “Minority Report” + Tony Stark’s JARVIS. Ok, maybe not that high tech, but you get the point… 

(Source: Giphy)

Plus, with Azure now deploying tools like GTP-4 in these secure environments, Microsoft and Palantir are equipping the military with abilities that are both futuristic and practical to gain an edge over foreign entities. Translation: War movies are about to be even more bada$$ to watch. See: Land of Bad for context.

(Source: Giphy)

So given all of this, it’s evident that this partnership is set to regain investor confidence on behalf of Microsoft. Because not only does teaming up with Palantir boost its street cred in the AI world (especially with those juicy government contracts), but it will position Azure as the go-to platform for secure government operations.

For Palantir, on the other hand, this just gives them another opportunity to showcase its AI and data analytics chops as the company already rakes in over 54% of its 678.13 million revenue from government clients. 

(Source: Reuters)

So, in the end, it’s clear why this partnership is appealing to Wall Street - not only is this a win-win for company clout, but it’s also an apparent game-changer for national security. And who the hell doesn’t like a beefed up national security? (“Build the Wall, amirite?”) 

At the time of this writing Palantir is up +11.16% with Microsoft up +1.48% on the day. 

Stocks.News holds positions in Amazon, Google, and Microsoft as mentioned in the article.