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Palantir Technologies (PLTR) shares gained Thursday after the analytics software provider said it extended a contract with the U.S. Army that could be worth more than half a billion dollars.

The company said the agreement has a value of $400.7 million for up to four years, with a potential to reach $618.9 million.

Palantir and the Army have partnered since 2018 in a program known as Army Vantage, with Palantir providing the Army with “data and artificial intelligence (AI) to more effectively perform essential missions and enable faster decision-making across the force.”

The company added that with its software, “the Army is able to create AI-enabled data solutions that integrate, analyze, and visualize information from multiple disparate data sources to better enable operational efficiencies and optimize business processes across the Army enterprise.”

Palantir said so far Vantage has supported more than 100,000 users, with a record number set this year.

Shares of Palantir climbed close to 4% Thursday following the news and have more than quadrupled in value since the start of the year. The stock is set to join the Nasdaq 100 Index next Monday.

CORRECTION—Dec. 19, 2024: This article has been corrected to reflect Palantir's contract with the U.S. Army could be worth up to $618.9 million.

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