Nvidia and Palantir Technologies are the dream team of artificial intelligence, bringing together hardware and software. The two companies said Thursday they were combining their capabilities to create AI to improve supply chains but it wasn't doing much for the shares.

They said Palantir customers would be able to create their own supply chain AI by combining Palantir's software and data with Nvidia's Nemotron open models. And to show how much they trust it, Nvidia will deploy the technology on its own operations first.

"Organizations across complex industries - including agriculture, manufacturing, pharmaceutical, retail, technology and governments - can use the AI stack to optimize their own unique supply chain operations," the companies said in a statement.

AI being applied to supply chains is important but perhaps not exciting for shareholders yet. Nvidia shares were down 0.8% in premarket trading and Palantir was slipping 1%. The move was broadly in line with the wider technology sector which was being weighed on by higher bond yields.

Still, it's worth noting the closeness of Nvidia and Palantir, which announced a partnership on AI for the U.S. government in June.

Both are champions of so-called open AI - meaning models that anyone can download, modify, and run on their own infrastructure. That's because they share an interest in not being cut out of their businesses by closed-model providers such as OpenAI and Anthropic.

If Nvidia and Palantir can successfully sell their vision of open AI to enough big commercial customers, they could provide real competition for the AI model giants.