Palantir Launches ‘Chain Reaction’ In Partnership With Nvidia, CenterPoint Energy To Tackle AI’s Biggest Bottleneck – The Energy Grid

• Tristan Gruska, Palantir’s head of energy and infrastructure, called the energy buildout “the industrial challenge of our generation.”
• U.S. data-center power demand could reach 106 GW by 2035, BloombergNEF reported earlier this year, a 36% increase over previous forecasts.
• The move marks an expansion of Palantir’s partnerships with both Nvidia and CenterPoint Energy. 

Palantir (PLTR) announced on Thursday a new product called Chain Reaction, a software platform meant to help build and manage U.S. artificial intelligence infrastructure.

The company is betting it can solve one of the biggest choke points in the AI boom, the energy grid. It’s bringing in two founding partners, CenterPoint Energy (CNP), one of the country’s largest utilities, and Nvidia (NVDA).

Palantir’s stock edged 0.04% higher in pre-market trade, with retail sentiment on Stocktwits improving to ‘bearish’ from ‘extremely bearish’ over the past day. Meanwhile, Nvidia’s stock rose 0.5%, with retail sentiment trending in ‘bearish’ territory over the past day. CNP’s stock also had retail sentiment trending in ‘bearish’ territory, but with ‘high’ levels of chatter, as it moved 0.08% higher in pre-market trade.

AI Build-Out Choke Points

Palantir said the biggest constraint on AI innovation is no longer model development but access to power and high-performance computing hardware, both of which are increasingly strained by rising data-center demand.

Chain Reaction is meant to coordinate all the players involved — energy utilities, power grid operators, data-center builders, and infrastructure companies — so they can expand faster.

The energy infrastructure buildout is the industrial challenge of our generation,” said Tristan Gruska, Palantir’s head of energy and infrastructure. “But the software that the sector relies on was not built for this moment.”

U.S. data center power demand could reach 106 GW in 2035, BloombergNEF said Monday. The latest forecast is 36% higher than its previous April prediction. According to a McKinsey report,  by 2030, data centers are projected to require $6.7 trillion worldwide to keep pace with the demand for compute power. 

Expanding Partnerships With CenterPoint, Nvidia

CenterPoint, headquartered in Houston, serves roughly 7 million electric and gas customers across Texas, Indiana, Minnesota, and Ohio. The utility’s initial partnership with Palantir followed Hurricane Beryl in 2024, when it committed to building the most resilient coastal grid in the country and selected Palantir as its software backbone. 

Nvidia is also extending its collaboration with Palantir, after teaming up with the company in October to integrate Palantir’s AIP and Ontology systems with Nvidia’s Nemotron models, CUDA-X libraries, and accelerated computing hardware.

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