Palantir Technologies NASDAQ:PLTR shares rose about 1% on Friday after the U.S. Defense Intelligence Agency withdrew a solicitation tied to a military intelligence platform following the company's bid protest.
The Defense Intelligence Agency said it withdrew the procurement at its own request. The project involves an artificial intelligence-enabled intelligence system that supports military operations, including targeting functions.
Palantir challenged the solicitation in May, arguing that the government was seeking to build a new system despite commercially available technology already existing, according to people familiar with the matter cited by Bloomberg. The withdrawal pauses the procurement process and may require the agency to reassess its acquisition approach.
The decision represents a procedural win for Palantir, which has expanded its defense business and strengthened ties with the U.S. government in recent years. However, it may also delay the agency's efforts to modernize an AI-powered intelligence platform used across military operations.