This Artificial Intelligence (AI) Company Just Got Some Unwelcome News Regarding the Pentagon Budget Cuts (Hint: It's Not Palantir)

When Republican presidential nominee Donald Trump was campaigning, one of his more consistent talking points was a concern over areas of wasteful federal spending. This rhetoric inspired the creation of a new program called the Department of Government Efficiency (DOGE) after Trump's election victory on Nov. 5.

For the most part, DOGE has focused on cutting ties with expensive contractors and organizations employed by various government agencies. Back in February, Trump essentially extended the idea of DOGE to the military. Specifically, he ordered Defense Secretary Pete Hegseth to identify cost savings around the defense budget.

Shortly after this news became public knowledge, shares of artificial intelligence (AI) analytics software darling Palantir Technologies (NASDAQ: PLTR) took quite a beating. Given the company derives roughly half of its revenue from federal contracts (much of it with the Department of Defense), it's not entirely surprising that investors reacted emotionally to the news of budget cuts at the Pentagon and assumed it was bad news for Palantir.

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