Big data analytics specialist Palantir (NYSE:PLTR) saw its shares swing higher on Thursday following a major announcement. Early this morning, the company disclosed a strategic partnership with Voyager Space, a global leader in space exploration. The agreement will focus on developing artificial intelligence (AI) systems for the modern enterprise. PLTR stock also jumped on the broader implications of AI boosting the space economy.
Per the official press release, Palantir and Voyager “will rapidly advance the space and defense technology sectors by integrating Palantir’s cutting-edge AI tools across the Voyager enterprise.” Notably, this latest deal expands on the two entities’ previous memorandum of understanding (MOU) announced earlier this year.
In February, the companies linked up to explore the capabilities of AI and machine learning (ML) under the framework of advancing national security capabilities in commercial space. Eventually, the partnership aims to facilitate technology demonstration missions on the International Space Station (ISS), as well as the future Starlab commercial space station.
As for the latest terms, Voyager plans to fully integrate Palantir’s AI capacities into its defense solutions, per Seeking Alpha. Specifically, Voyager will incorporate Palantir’s open architecture and AI platform to “drive value in its in-house payload management system” for ISS customers.
PLTR Stock Skyrockets on Burgeoning Relevance
In addition to supporting the collaborative research at the ISS, the partnership will help bring economic value to the upcoming Starlab space station. According to the press release, “Voyager and Palantir will explore the integration of Palantir’s AI / ML and edge processing capabilities to support Starlab station development, manufacture, and future operations.”
Further, the release notes that “[s]ample use cases include space domain awareness (SDA), data fusion, and processing at the edge to enable autonomous decisions and secure collaboration with Allies.” Notably, the underlying collaboration extends to government agencies, along with partner nations within NATO. Subsequently, the broad scope of the agreement helped send PLTR stock flying.
BCC Research states that the global AI in space exploration market reached a valuation of $2.5 billion in 2022. Experts project that the sector may reach $11.7 billion by 2028. If so, that would imply a compound annual growth rate (CAGR) of 29.1% from 2023.
That’s just one estimate. Another source, Market.US, claims that by 2033, the sector could be valued at approximately $35 billion. If so, that would imply a CAGR of 32.4% from last year’s estimated sector value of $2 billion.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
