Palantir signed an agreement to use Nvidia's Nemotron to develop models for government clients.
The partnership arrived as Palantir, the AI software company, saw its shares rally roughly 18% in a week and put renewed pressure on short sellers after Dr. Michael Burry covered half of his short position, Joey Frenette at Yahoo Finance reported.
CEO Alex Karp warned that "something has gone completely wrong" in how AI is being sold today, a critique the article said helps explain Palantir's positioning against hype-driven tokenization trends.
Investors and bulls point to Palantir's 145 times trailing price-to-earnings multiple and an 85% revenue-growth quarter as the financial backdrop for optimism as it pairs its data and ontology tools with Nvidia's compute platform.
The piece noted the collaboration frames Palantir and Nvidia as complementary players in sovereign AI, but cautioned the deal may not be enough by itself to trigger a sustained run to the Street-high $230 price target that is about 78% above current levels.
The article concluded that the agreement could become a template for secure, layered AI stacks as customers and vendors wrestle with rising AI cyberthreats.
