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For over a year, AI company Anthropic has been providing services to the U.S. government through enterprise software company Palantir. Palantir is known for its collaborations with the Pentagon and other federal agencies, where its clients utilize Anthropic's models to identify patterns within vast amounts of classified data to aid in decision-making. However, last Friday, the U.S. Department of Defense decided to restrict the use of Anthropic's technology by military contractors, which may force Palantir to sever its ties with Anthropic. Approximately 42% of Palantir's nearly $4.5 billion in revenue comes from government contracts, and discontinuing the use of Anthropic in federal operations would cut off one of Anthropic's revenue streams. Nevertheless, Palantir can switch to other AI model suppliers, and its revenue would likely remain largely unaffected.
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