Nvidia, Palantir expand AI partnership for U.S. government

What happened

Nvidia and Palantir announced an expansion of their partnership to build secure AI systems for U.S. government agencies. Palantir launched a new open-source AI engine based on Nvidia's Nemotron models, designed to run in air-gapped environments (ultra-secure computer systems not connected to the internet) so government users can harness AI while keeping sensitive data under their control.

Why it matters

Both companies are at the top of their game in AI infrastructure. Nvidia controls between 85% and 92% of the data center GPU market and has stated it has "visibility" to $1 trillion（約160兆円） in revenue from its Blackwell and Vera Rubin chips over the next couple of years. Palantir just reported its first-quarter revenue surged 85% year over year to $1.63 billion（約2600億円）, with remaining backlog up 134% to $4.45 billion（約7100億円）. Together, they are combining Nvidia's processing power with Palantir's expertise in making AI practical for large organizations.

What to watch

The partnership integrates Nvidia's Blackwell Ultra platform, GPUs, and CUDA software tools with Palantir's Foundry, Apollo, and AIP systems into a turnkey AI datacenter. Both stocks are trading at what the article describes as attractive valuations on a price/earnings-to-growth basis (0.45 for Palantir and 0.27 for Nvidia, both below 1, the standard for undervalued stock).