Palantir Technologies has emerged as the top pick for a large contract overhauling the United Kingdom's National Health Service, Bloomberg reported. PLTR stock jumped in trading Wednesday following the report.
The five-year contract, which could be extended by two years, is worth as much as $579 million, according to Bloomberg. Further, Palantir would help the agency analyze medical data and ultimately overhaul its entire system.
The U.K. government is on track to announce Palantir as the winning bidder as soon as this month, Bloomberg's report said, citing people familiar with the discussions. However, the report notes the deal is subject to final approvals and legal agreements.
On the stock market today, PLTR stock closed up 5.6% at 15.73.
PLTR Stock: Also Boosted By Army Deal
Palantir began working with the NHS during the Covid-19 pandemic, including managing the country's vaccine rollout. But its pursuit of the new contract has been controversial, as consumer and civil rights have have raised concerns about one company handling the vast amount of personal data.
PLTR stock got a boost last week after winning a $250 million U.S. Army research and development contract involving artificial intelligence.
The Denver-based software company's platforms include Palantir Gotham, which is used primarily by government agencies. It also runs Palantir Foundry, which is used by corporate clients.
Palantir announced a new offering, the "Artificial Intelligence Platform," in April. As of mid-September, Palantir says AIP has 150 users, up 50% within the last month.
PLTR stock hit a 52-week intraday high of 20.24 on Aug. 1 as AI stocks continued to rally. But as of Oct. 4, PLTR stock has pulled back from that 52-week high. But the stock has advanced more than 130% this year.
