Microsoft, Palantir Aim to Sell AI to US Defense, Spy Agencies

Microsoft Corp. and Palantir Technologies Inc. are combining their government cloud-computing and artificial intelligence tools in a bid to sell software, including OpenAI’s GPT-4, to US defense and intelligence agencies for top-secret tasks.

As part of the agreement, Palantir will integrate its products with Microsoft’s Azure cloud services for government customers, including tools meant for confidential use, and will adopt Microsoft’s Azure OpenAI service inside these secretive clouds. The combination of products will let US defense workers handle tasks like logistics, contracting and action planning, the two companies said Thursday in a statement.

Microsoft has bolstered demand for its Azure cloud service by selling clients the ...