Palantir Technologies and Cleveland‑Cliffs Inc. have entered into a three‑year agreement to embed Palantir’s AI platform across the steelmaker’s U.S. manufacturing footprint. The deal will integrate Palantir’s Foundry and Artificial Intelligence Platform (AIP) into Cleveland‑Cliffs’ production planning, order entry and operational workflows, enabling real‑time data integration and predictive analytics across the company’s plants.
The partnership marks a key milestone in Palantir’s strategy to become the “indispensable operating system for the modern enterprise.” In Q4 2025, Palantir’s U.S. commercial revenue grew 137% year‑over‑year to $507 million, and its overall U.S. commercial revenue surged 109% to $1.5 billion. The new deal with a major U.S. steel producer is expected to accelerate the adoption of Palantir’s AI platform in a complex, high‑volume industrial environment, reinforcing the company’s commercial expansion and its ability to monetize its platform at scale.
Cleveland‑Cliffs’ Q1 2026 results provide context for the partnership. The company reported an EPS of –$0.40 and revenue of $4.9 billion, slightly better than the consensus estimate of –$0.41 and $4.81 billion, respectively. Compared with Q1 2025, the company’s GAAP net loss narrowed from $486 million to $229 million, and its adjusted net loss improved from $0.93 to $0.40 per diluted share. CEO Lourenco Goncalves said, “After completing our pilot work with Palantir, it became clear they were the platform of choice to take our business into the future. What we have seen so far has been nothing short of a gamechanger. Integrated steelmaking is extraordinarily complex and Palantir’s platform allows us to solve problems in ways humans simply cannot. In addition, our cultural and policy alignment with Palantir make this partnership a very natural and durable fit for Cliffs.” The company also noted that the initiative will move it from human‑experience‑driven planning toward an AI‑assisted decision‑making system that scales with operational complexity.
Palantir’s own financial performance underscores the significance of the deal. In Q4 2025, the company posted an EPS of $0.25 and revenue of $1.41 billion, beating estimates of $0.23 and $1.34 billion. Management guided for Q1 2026 EPS of $0.29 and revenue of $1.54 billion, and the FY 2026 revenue guidance of $7.182‑$7.198 billion represents a 61% year‑over‑year increase. The partnership is expected to contribute to this growth trajectory by expanding Palantir’s commercial customer base and demonstrating the platform’s value in a high‑volume industrial setting.
Market reaction to the announcement reflects broader investor concerns. Cleveland‑Cliffs’ stock fell in pre‑market trading after its Q1 2026 earnings, despite beating estimates, due to investor worries about operational challenges and market conditions. Palantir’s stock had experienced a pullback driven by valuation concerns and competition in the AI space, although the company’s strong earnings track record and commercial momentum mitigate short‑term pressure. The partnership signals long‑term value for both firms, reinforcing Palantir’s commercial expansion and Cleveland‑Cliffs’ modernization strategy.
The three‑year AI partnership positions Palantir to capture a growing share of the industrial AI market, while giving Cleveland‑Cliffs a technology advantage that could improve production efficiency, reduce cycle times and enhance decision‑making across its U.S. plants. Together, the deal exemplifies how advanced analytics can transform traditional manufacturing and supports Palantir’s goal of becoming the core operating system for large enterprises.
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