Palantir advises clients against using DeepSeek's AI tech; forecasts upbeat 2025 revenue

The logo of US software company Palantir Technologies is seen in Davos, Switzerland, on May 22, 2022. (File photo: Reuters/Arnd Wiegmann)
Palantir recommends its clients steer clear of Chinese startup DeepSeek's artificial intelligence (AI) models, a senior executive of the data analytics company said on Monday (Feb 3), days after doubts were raised about the United States' lead in AI technology.
"We would strongly discourage it (DeepSeek) and don't think any customer in the US government will be able to use it," Palantir's Chief Revenue Officer Ryan Taylor said.
Co-founded by tech billionaire Peter Thiel, Palantir provides services to governments like supplying software that visualises army positions.
US officials are looking at the national security implications of the app DeepSeek, White House press secretary Karoline Leavitt said last week.
Federal agencies such as NASA have also banned employees from using the tech, according to media reports.
Palantir also forecast first-quarter and annual revenue above Wall Street estimates on Monday. More than 40 per cent of its fourth-quarter sales were from the US government.
The company's shares surged 22 per cent in extended trading on Monday after Palantir forecast fiscal 2025 revenue between US$3.74 billion and US$3.76 billion, above the average analyst estimate of US$3.52 billion, according to data compiled by LSEG.
"On the government side, Palantir's vision is very well aligned with the current administration," said DA Davidson analyst Gil Luria.
Palantir would also discourage commercial clients from using the Chinese startup's AI models, Taylor said, adding that if customers still choose to employ DeepSeek models the company would continue to work with them.
Palantir is working to reduce its dependence on government spending. The data analytics firm expects revenue derived from companies in the US to grow at least 54 per cent in 2025 to more than US$1.80 billion.
Businesses pushing to deploy generative AI tech have helped drive sales for Palantir's AI platform, AIP, which is used to test, debug code and evaluate AI-related scenarios.
Palantir forecast March-quarter revenue between US$858 million and US$862 million, compared with estimates of US$799.4 million.
Expanded tariffs ordered by Trump on Saturday could also help drive demand for the company's analytics services centred around supply-chain and logistics management, Taylor added.
On an adjusted basis, Palantir earned 14 cents per share in the fourth quarter, beating estimates of 11 cents.