synopsis

Elon Musk's xAI will contribute its Grok large language models and Colossus supercomputer infrastructure to the partnership.

Palantir Technologies (PLTR) and investment firm TWG Global have entered into a strategic partnership with billionaire Elon Musk’s artificial intelligence startup xAI, aiming to accelerate enterprise adoption of AI in financial services.

The partnership, announced Tuesday, will combine Palantir’s AI software, TWG’s financial sector reach, and xAI’s large language models, including the Grok model family and its Colossus supercomputer infrastructure. 

The companies said the joint effort will work directly with enterprise CEOs to build and deploy a “workforce of hundreds of thousands of AI agents” that can streamline operations and drive real-time decision-making.

Palantir and TWG had previously launched a joint venture in March focused on AI implementation across financial services and insurance. TWG, founded by Guggenheim Partners’ Mark Walter and Legendary Entertainment’s Thomas Tull, will lead deployment efforts in collaboration with executive teams at client firms.

Palantir CEO Alex Karp criticized the complexity of current enterprise systems, stating that the new partnership is a more direct, AI-driven integration to unlock productivity and value.

The companies said xAI’s inclusion signals the beginning of broader collaboration across the AI ecosystem. In March, xAI joined a separate AI consortium that includes Nvidia (NVDA), Microsoft (MSFT), MGX, and BlackRock to support U.S. infrastructure expansion.

Despite the announcement, Palantir stock dropped as much as 13% on Tuesday after analysts welcomed the company’s Q1 earnings and revenue growth but flagged valuation concerns. Some cited the stock’s elevated multiple relative to future growth potential.

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Read also: Palantir Stock Plummets As Analysts Flag Valuation Risks Despite Q1 Revenue Beat