Palantir expands partnership with BP. What investors should know.
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Shares of Palantir (PLTR) have risen to a 52-week high after the company expanded its partnership with BP (BP). Matt Babin, head of energy and natural resources at Palantir, joins Market Domination to discuss the five-year partnership and what Palantir brings to the energy sector.
Babin explains that BP will use Palantir's AI software to improve the decision-making process across the company:
"You can think of their business as a complete connected value chain, from reservoirs underground, up through their facilities, onshore or offshore, all the way to a refining or processing facility, all the way to an end customer. And so what they use our software for is all of the decisions along that chain. That's a complicated chain, and you can think of each decision you make along the way actually changes the decisions you can make downstream... What's new with this extension is layering AI on top of that underlying digital twin model of the entire business."
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He adds that Palantir's technology will be able to connect decision-makers from all different disciplines and run simulations based on questions asked. "if you're a reservoir engineer and you're paying attention to what that subsurface reservoir is like, that's much different than sort of an operations or a base management engineer thinking of, 'How could I change the performance of this facility?' But this gives you one pane of glass to look at and collaborate over that."
Going into the expanded partnership with BP, Babin notes that there is significant competition in energy. "There was largely a choice between two ways of working. You could you could go to a hyperscaler and sort of have a horizontal infrastructure system... Or you could buy bespoke software that did one particular thing. And what we do is say you shouldn't have to make that choice. You should be able to scale while also being able to solve specific problems," he explains.
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This post was written by Melanie Riehl