Shares of Palantir Technologies (New York: PLTR) rose 1% during premarket on Friday after Bloomberg reported that a U.S. government agency had withdrawn a tender to modernize a military intelligence system—following a protest by the company.
The intelligence agency withdrew the tender on its own initiative, a representative for the agency said. The system in question is used to support military operations around the world, including for targeting guidance.
In May, Palantir filed a protest stating that the US intends to build an intelligence system from scratch, while the company already has ready-made commercial products—according to informed sources cited by Bloomberg.
The approved decision complicates the efforts of the Military Intelligence Agency—combat support structures—to improve the AI-based system used during military operations.
This decision marked an interim win for Palantir, whose market capitalization and volume of contracts with the US military grew significantly during the second Trump administration.