Palantir Technologies raises its annual revenue forecast for the second time this year, citing sustained demand for its AI-linked services from businesses and governments. The U.S. Army may purchase services worth up to $10 billion over a decade. Shares surge 4% in extended trading, more than doubling in value this year.

Palantir projects revenue between $4.14 billion and $4.15 billion this year, above analysts’ average estimate of $3.90 billion. Sales to the U.S. government jump 53% to $426 million, representing over 42% of total second-quarter revenue. Co-founder Peter Thiel expects revenue from U.S. businesses to exceed $1.30 billion this year.

Expenses are expected to rise significantly in the third quarter due to a hiring frenzy. CEO Alex Karp emphasizes talent acquisition and retention, stating that educational background is not a focus in recruiting. Palantir prides itself on creating a strong team culture where individuals are valued for their contributions.

Read more at Yahoo Finance: Palantir lifts annual revenue forecast again as AI demand accelerates