Nvidia and Palantir Technologies, often seen as a natural pairing of AI hardware and software, announced Thursday that they are expanding their collaboration to develop AI tools to improve supply chain operations, though the news had little immediate impact on either stock.
With this expanded partnership, Palantir customers can build custom supply chain AI applications by using Palantir’s software and data tools together with Nvidia’s open Nemotron AI models. Nvidia plans to use the technology in its own operations first, showing its confidence in the new approach.
The companies said that organizations in many complex industries, such as agriculture, manufacturing, pharmaceuticals, retail, technology, and government, could use their combined AI tools to improve their supply chain operations.
Using AI for supply chain management is an important application, but the announcement did not mention any financial goals. This limited its effect on investors. Shares of both Nvidia and Palantir fell slightly in early trading, but this was in line with a general drop in the technology sector due to rising bond yields, not because of the announcement itself.
This partnership continues the growing relationship between the two companies. Earlier this year, they also announced a separate AI project for U.S. government use. Both companies support open AI models, which can be freely downloaded, changed, and used on independent systems. They share an interest in avoiding reliance on closed-model providers like OpenAI and Anthropic.
If Nvidia and Palantir can get many large commercial customers to use their open AI approach, the partnership could help both companies become strong competitors to the leading AI model developers in the future.
