Palantir, Nvidia, CenterPoint Energy Partner to Develop ‘Chain Reaction’ Software to Accelerate Power-Intensive AI Data Center Construction

Palantir Technologies Inc. (NASDAQ:PLTR) is one of the most profitable tech stocks to buy. On December 4, Palantir Technologies, Nvidia (NASDAQ:NVDA), and US utility CenterPoint Energy (NYSE:CNP) announced that they are jointly developing a new software platform called Chain Reaction. This system is being created to accelerate the extremely complex process of building new AI data centers, which can consume as much electricity as a small city.

The partners view the current bottleneck to AI innovation as being energy and compute infrastructure, rather than algorithms, and Chain Reaction is designed as an operating system to resolve these issues. The Chain Reaction software is intended to help firms build these gigawatt-scale AI factories by streamlining challenges related to permitting, supply chain, and construction. It will use AI tools to coordinate and optimize the supply chain across various critical actors, including energy producers, power grid operators, data centers, and infrastructure builders.

Palantir, Nvidia, CenterPoint Energy Partner to Develop 'Chain Reaction' Software to Accelerate Power-Intensive AI Data Center Construction

This effort must account for the logistical interdependencies across different types of companies. For instance, the system will need to align the efforts of Nvidia’s chipmaking partners, like Taiwan Semiconductor Manufacturing, with the work of utilities like CenterPoint Energy, which secure permits for and construct electrical grid upgrades. The system will build upon the previous collaboration between Palantir and Nvidia that was unveiled last month, which applied AI to solve logistical challenges for retailers. However, Chain Reaction extends this model by integrating the entire AI infrastructure value chain

Palantir Technologies Inc. (NASDAQ:PLTR) builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the US, the UK, and internationally.

While we acknowledge the potential of PLTR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than PLTR and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.