Key insights
- Cleveland-Cliffs partners with Palantir to integrate AI into its manufacturing operations. The goal is to improve production planning and operational workflows. While the financial terms are undisclosed, this move signals a potential efficiency gain for Cleveland-Cliffs. However, the company's existing debt and lack of profitability temper the bullish signal.
CLEVELAND - Cleveland-Cliffs Inc. (NYSE:CLF) announced Tuesday it has entered a three-year partnership with Palantir Technologies to deploy artificial intelligence solutions across its manufacturing operations.
The agreement will integrate Palantir’s AI platform into Cleveland-Cliffs’ production planning, order entry, and operational workflows across its facilities, according to a press release statement. The technology is intended to integrate data and coordinate activities in real time.
The partnership follows a pilot program between the two companies. Lourenco Goncalves, Cleveland-Cliffs’ Chairman, President, and CEO, said the platform "allows us to solve problems in ways humans simply cannot."
Cleveland-Cliffs operates as a vertically integrated steel producer in North America, with operations spanning from iron ore mining through finished steel products. The company employs approximately 25,000 people across facilities in the United States and Canada. With a market capitalization of $6.05 billion and revenue of $18.9 billion over the last twelve months, the company faces financial headwinds. InvestingPro analysis indicates the stock is currently overvalued, and the company operates with a significant debt burden of $7.78 billion while analysts don’t anticipate profitability this year.
The steel producer focuses on value-added sheet products, particularly for the automotive industry. Its operations include mining iron ore, producing pellets and direct reduced iron, processing ferrous scrap, and downstream finishing processes.
Financial terms of the agreement were not disclosed in the announcement.
In other recent news, Cleveland-Cliffs Inc. reported its first-quarter 2026 earnings, revealing a narrower-than-expected loss. The company posted an earnings per share (EPS) of -$0.40, slightly better than the anticipated -$0.41. Additionally, Cleveland-Cliffs surpassed revenue expectations, generating $4.9 billion compared to the forecasted $4.81 billion. Despite these results, the stock experienced a pre-market decline, attributed to investor concerns about operational challenges and market conditions. In another development, Cleveland-Cliffs shares surged 10% during a recent trading session, with trading volume reaching four times the average. The reason behind this significant movement remains unclear. The stock has gained 32% over the past month, although it remains down 20% year to date. Analysts have noted that the stock faces considerable short interest, with 15% of the float held short.
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