Microsoft (NASDAQ:MSFT) has entered into a partnership with the US technology company Palantir to jointly market cloud and AI solutions to government agencies and intelligence services. As part of this partnership, technologies such as GPT-4 and other advanced AI products will also be offered.
Integration of OpenAI GPT-4 via Azure Cloud
According to a joint statement from Microsoft and Palantir, Palantir will combine its products with Microsoft's Azure cloud services to market them to government agencies. This cooperation also includes tools that are intended for highly confidential applications.
Palantir plans to integrate OpenAI's AI services, such as GPT-4, into its cloud products, which are designed specifically for intelligence agencies, law enforcement agencies and other government agencies, via Microsoft's Azure cloud. This will enable US defence agency employees to optimise logistics, procurement and planning with the help of the new, powerful tools.
Palantir benefits from Microsoft's investments in AI
Palantir, which is best known for its surveillance and data processing software, will gain access to Azure OpenAI through its partnership with Microsoft, which will enable the company to further develop its own AI software using OpenAI's language models. Palantir will also benefit from Microsoft's previous investments, which have enabled it to offer AI solutions in highly secure environments.
In May of this year, Microsoft had already integrated GPT-4 from OpenAI into its Azure Government Top Secret platform. This offering provides a sealed-off environment in which intelligence agencies can use customised cloud services, including AI models.
It is no surprise that Palantir is seeking such a partnership. But it is more surprising that Microsoft is going in this direction. However, this clearly shows that Microsoft continues to act very cleverly and thus creates further opportunities that the company would not have been able to create on its own. Satya Nadella, the CEO of Microsoft, clearly knows how to set the right course at an early stage. He has already proven this through the acquisition of Activision Blizzard (NASDAQ:ATVI) and most recently through the almost complete takeover of OpenAI. The joint venture with Palantir will certainly pay off for Microsoft, because Microsoft might not get government contracts in the sensitive data business so easily.
Finally, let's take a look at the Palantir share
Is the share now in a sustainable upward trend, or do we have to prepare for a final sell-off before an extremely strong increase? We will answer this question now.
Thanks to the really good quarterly figures that Palantir presented last Monday and the announcement of a collaboration between Microsoft and Palantir, the Palantir share was able to escape the general downward pressure on Monday in after-hours trading and then on Tuesday, almost single-handedly, to pull through to the upside.
The share has therefore used the zone of the purple box at $21.56 to $20.66 to make the leap upwards from there. We assume that the upward movement still has some room to move up to the zone of the red box at $30.49 to $34.15. We expect another significant high there, followed by a correction, the bottom of which will offer another good buying opportunity. If everything goes according to plan, the stock will reach $32.23, then drop to around $26.42 to $23.10, and then start to climb again.
It would be enormously important for the share to break through the $30.52 mark in the current upward movement. Because up to that point, there is plenty of room for a corrective wave. The share failed to break through that point during the last upward movement (please see the red box between $29.22 and $30.52).
And that was also the reason why we initially favoured a sell-off to the zone of the violet circle at $18.48 to $17.33. So if the stock does not manage to break through $30.52, this danger will remain on the chart. That would not be the worst thing, because then we could buy Palantir again at a very low price.
A complete collapse of the share price is unlikely, but the entire upward trend is broken if the share price falls below $15.46. We need to know that at least.
To be successful in the stock market in the long term, you need to make many smart decisions. We can help you with that.
You can find out more about us on our website, which you can access via the link next to my profile picture above this text.
Disclaimer/Risk warning:
The information provided here is for informational purposes only and does not constitute a recommendation to buy or sell. It should not be understood as an explicit or implicit assurance of a particular price development of the financial instruments mentioned or as a call to action. The purchase of securities involves risks that may lead to the total loss of the capital invested. The information provided does not replace expert investment advice tailored to individual needs. No liability or guarantee is assumed, either explicitly or implicitly, for the timeliness, accuracy, appropriateness or completeness of the information provided, nor for any financial losses. These are expressly not financial analyses, but journalistic texts. Readers who make investment decisions or carry out transactions based on the information provided here do so entirely at their own risk. The authors may hold securities of the companies/securities/shares discussed at the time of publication and therefore a conflict of interest may exist.