Palantir lands $99.6 million deal with U.S. State Department

[March 08, 2023]  By Jeffrey Dastin
 
(Reuters) - Palantir Technologies Inc has won a contract to sell up to $99.6 million worth of software to the U.S. Department of State for monitoring the health of the diplomatic corps, the company told Reuters ahead of a Wednesday announcement. 

The logo of U.S. software company Palantir Technologies is seen in Davos, Switzerland, May 22, 2022. Picture taken May 22, 2022. REUTERS/Arnd Wiegmann/File Photo

The U.S. data analytics firm said the project - Axiom - would help the Bureau of Medical Services respond faster to any health crises faced by the embassy staff and their families.

The bureau has sought software to record health incidents, predict risks, manage medical-evacuation missions and handle other tasks, according to a government document.

The news reflects how Palantir is aiming to secure government deals beyond the military and intelligence work central to its business, even as analysts have said such opportunities are being delayed by the U.S. budget scrutiny.

Last month, Palantir reported its first profitable quarter, during which sales grew faster on government business rather than revenue from the private sector partly due to economic uncertainty.

Palantir told Reuters the State Department has already paid the company $10 million as part of the purchase agreement, and it will book the remaining value over the next five years.

The Denver, Colorado-headquartered company said the deal continues a pilot dating back to 2021 and other State Department work since 2017.

(Reporting By Jeffrey Dastin in Palo Alto, Calif.; Editing by Sherry Jacob-Phillips)

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