Palantir dives as the Pentagon eyes rivals’ AI to reduce its dependence on the company

A new report from The Information on Monday found that federal agencies like the Department of Defense are testing AI to reduce reliance on contractors like Palantir and Lockheed Martin.

Shares of Palantir took a nosedive following the report, but began to tick back up.

According to The Information, the government is counting on AI models from Microsoft and OpenAI that can extract vast amounts of data to give it a leg up in negotiations with companies like Palantir.

Microsoft’s Rivals Lean on AI to Pry Away Longtime Customers

According to The Information, the government is counting on AI models from Microsoft and OpenAI that can extract vast amounts of data to give it a leg up in negotiations with companies like Palantir.

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Luke Kawa

Marvell spikes after Nvidia invests $2 billion in the custom chip maker

And YOU get $2 billion and YOU get $2 billion

Luke Kawa

Virgin Galactic soars after boosting space tourism ticket prices to $750,000

Virgin had paused its space tourism program after a June 2024 flight in order to focus on building a better spacecraft.

Claire Yubin Oh1h

Vertiv falls after Jefferies downgrade, company announces $50 million to expand Ohio manufacturing capacity

Vertiv Holdings is sliding 2% in premarket trading on Tuesday after the data center digital infrastructure provider was downgraded to "Hold" from "Buy" by analysts at Jefferies.

Citing risks in slowing hyperscaler capex growth in 2027 and beyond, as well as the view that out-year margin expectations are elevated, Jefferies cut its price target for Vertiv to $260 from $280. Estimates from Jefferies analysts assume that the firm successfully expands its capacity to meet its "outsized" current order book.

Separately, the company announced an investment worth up to $50 million to expand its manufacturing facilities in Ironton, Ohio and headquarters in Westerville, Ohio.

The Ironton expansion will “increase Vertiv liquid cooling and chilled water systems used in advanced thermal management applications,” often used in high performance AI workloads, by ~45%, per the company’s press release, and is expected to be operational in the second quarter of 2027.

The company also recently announced its acquisition of heat-exchange technology provider Thermokey, as Vertiv continues to focus on investing in advanced cooling solutions used in AI data centers.

Hyunsoo Rim3h

US average gas prices hit $4.018 a gallon on Tuesday, crossing the $4 threshold for the first time since August 2022, according to the American Automobile Association. That’s roughly a 35% jump, or $1.04 more per gallon, since the Iran war began in late February. Diesel has surged even more sharply, rising about 45% to $5.45, raising concerns about higher shipping, grocery, and consumer goods prices.

With the Strait of Hormuz — through which roughly a fifth of global oil supply previously flowed — effectively closed, crude prices are up more than 50% since the war began, feeding quickly into pump prices across the US.

Still, regional differences remain, with drivers in California now facing nearly $5.90 a gallon for regular gasoline, followed by Hawaii ($5.50) and Washington ($5.30), while those in Oklahoma, Iowa, and Kansas pay under $3.30 a gallon.

Prices could even approach $5 nationwide if the strait remains blocked, Patrick De Haan, head of petroleum analysis at GasBuddy, told CNBC.

Tasha Matsumoto

17h

Stocks continue slide as US oil settles above $100

Stocks fell, weighed down by tech, as the US-Iran war entered its fifth week.

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