Palantibes stock is up more than 1% to $3.90, its highest price since June 8.
The stock is on track to trade as high as $4.00.
Amazon, which is building its own private cloud computing platform and has been a top customer of Palantab, is expanding its partnership with Palantin.
The two companies are set to start using Palantim for security systems and data storage in the second half of this year, Palanti chief executive and cofounder Rakesh Agarwal said on the sidelines of a conference.
The partnership will be part of the new Palantis cloud platform, which will have an integrated cloud infrastructure and will provide customers with a single platform that supports more than 100,000 services, Agarwals said.
Amazon is building a new cloud platform that will be used by its customers to store their data.
Amazon already has a deal with Palanip, an online data storage service provider, for security, he said.
Palantabs security software is now being used by other technology companies, including Facebook, IBM, IBM Watson, and Microsoft.
Palanto, which has a focus on security, has more than 3 million customers.