Palantir executives welcomed the advent of low-cost artificial intelligence. Other software stocks could also see benefits from cheaper AI.

Shares of Palantir Technologies ( PLTR 26.31%) charged out of the gate on Tuesday, spiking as much as 27.7%. As of 10:59 a.m. ET, the stock was still up 25.4%.

Palantir Technologies reported strong revenue growth last quarter as the company that made its name providing software to the U.S. government said demand for its artificial intelligence products continues to expand.

The AI-focused Palantir joins a group of less than 50 public American companies worth at least $200 billion, quite the turn of events for the government contractor worth less than $20 billion two years ago.