Palantir ( PLTR ) shares rose 4.6% on Monday after NATO announced it had completed its acquisition of an AI-powered military system from the Denver-based defense tech company.
Details of the deal were not disclosed, but NATO said it would begin using Palantir’s technology, Maven Intelligence System NATO (MSS NATO), within the next 30 days. MSS uses artificial intelligence to compile and analyze data for “battlefield awareness and planning,” including identifying military targets.
Palantir shares rose as much as 9% but gave up some of those gains in early trading as the broader market fell.
The U.S. military (specifically the Army, Air Force, and Space Force) already uses a version of MSS, and Palantir won a $100 million contract with the U.S. military in September to extend its use of the software.
The company has seen an increase in U.S. government spending on its AI warfare technology, with revenue from U.S. government contracts reaching $1.57 billion in 2024.
Palantir has faced some criticism for its role in AI warfare, and last fall the tech company was dumped by a large Nordic investor over human rights issues arising from its work with the Israel Defense Forces.
Palantir’s stock price has also been on a roller-coaster ride in 2025, rising nearly 50% at the start of the year before plunging in late February on reports that the Trump administration would cut the U.S. defense budget.
Massive insider selling has also weighed on the stock price. Still, Palantir’s stock price is up 22% since the start of 2025, while the S&P 500 has fallen more than 8% over the same period.
Palantir’s contract with NATO should allay investor concerns that rising geopolitical tensions will hurt U.S. defense contractors, William Blair analyst Louie DiPalma wrote in a client note Monday.
“Against the backdrop of investor concerns that Europe is looking to reduce its reliance on U.S. defense contractors, this deal has broader geopolitical implications beyond just another win for Palantir,” Di Palma wrote in a client note Monday.
“We believe this contract has positive implications for the U.S. defense sector; Europe will likely remain the largest buyer of U.S. systems as defense budgets increase.”
Dan Ives of Wedbush Securities wrote in a note to investors Monday morning that the deal “provides additional tailwind for PLTR,” adding that in his view the company remains “well-positioned to benefit from the strong federal government investments in AI in North America and Europe.”
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