Palantir Technologies shares rose Monday despite a U.S. government order for federal agencies to stop using AI tools from its partner, Anthropic. The directive issued late last week designated the startup a supply chain risk. This move cancels more than $200 million in government contracts with Anthropic.
Analysts suggest Palantir’s foundational role in the U.S. military remains secure. The stock is currently positioned as a stable defense-related AI investment amid rising geopolitical tensions.
The removal of Anthropic’s models may create opportunities for other AI partners to integrate with Palantir’s defense platforms. Analysts identify OpenAI as a potential candidate to fill the opening for government AI applications.