$900mn Air Force, Cloudflare, NHS update | Bullets #9
$900mn Air Force, Cloudflare, NHS update | Bullets #9
This week's Palantir developments and the crowned “Tweet of the Week”
Editor:
Hi, I’m Arny. If you are new, you can join here to spot Palantir asymmetries along with 1.089 investors. Please hit the ❤️ button if you like today’s article.
Paid subscribers also receive weekly in-depth research on Palantir's financials and strategy, and instant access to the full Palantir Bullets archive and models.
Do you have questions arising from my research? You can book a 1-on-1 meeting with me.
Book a meeting with Arny Trezzi
PLTR 0.00%↑ this week:
Palantir introduces Quality Management System for Life science to meet GxP requirements. The goal is to accelerate the timeline of the therapeutic launches while ensuring compliance. Palantir already counts some of the biggest Pharmaceutical companies like Sanofi and Pfizer among its clients. Therefore, Palantir is just scratching the surface of the opportunity to launch purpose-built products in healthcare.
Palantir announces a Strategic Partnership with Cloudflare NET 0.00%↑ . The goal of the collaboration is to provide clients with: i) Foundry to cut multi-cloud costs; ii) Apollo to reduce DevOps burden and improve gross efficiency; and finally, iii) Cloudflare solutions to provide a modern cloud architecture that doesn't restrict customer choice and delivers meaningful cost savings. This partnership reminds me of a comment from @ssankar: “Cloud deflation has to come,” hinting that the costs of running the cloud are too high due to the emerging cloud oligopoly. Should AWS, Azure, and GCP start to worry?
Palantir and Posit partner to integrate RStudio into Foundry. RStudio is one of the most trusted and widely accessed development environments for data science, particularly in the healthcare and life sciences industries. Therefore, Foundry’s data, governance, and security primitives will ensure customers maintain a secure environment for working with data and models.
NHS England has started the much-delayed Federated Data Platform procurement. The £360mn deal is for five years from September, with an additional option to extend for a further two years with a potential value of £480mn. Palantir's technology is state-of-the-art, but NHSE officials appear to be looking to meet demand at lower prices. Bids for the contract must be submitted by February 9th. Palantir is considered to secure this contract, however, there are concerns over the pricing. When it comes to healthcare, there should be no compromises. The actual cost should be judged on a value/cost basis.
Either Square and I launched Foundry__Gap. This new collaboration aims at answering a question many of us have: "If we have an enormous amount of active links, where are the results?" Our goal is to estimate Palantir’s Revenues by combining the power of the @Either_Square Database of active links and our understanding of Palantir's business model. The first results are encouraging! The article is available for subscribers of
and Palantir Bullets.
Federal Aviation Administration (“FAA”) Outage caused by its NOTAM system creates an opportunity for Palantir. NOTAM is a system that sends real-time safety alerts to pilots. The platform malfunctioning halted all US flights briefly but made it clear the transportation network desperately needs significant upgrades. Palantir already empowers FAA by supporting the FAA’s aircraft certification and continued operational safety activities. When the disruption comes, Palantir’s opportunity increases. I previously discussed Palantir’s crucial role in sky safety (Palantir's Skywise: the Runway to Monopolize the Sky).
Big Bear AI secures a $900mn 10-Year IDIQ deal with the US Air Force. Similar to Palantir, Big Bear has ~20 years of dealing with the DoD and is specialized in AI software for decision intelligence. Palantir partnered with Big Bear on November 21’ to integrate Big Bear AI solutions and Foundry to develop new joint products. Despite the fact that I would have loved to see that deal directly awarded to Palantir, I see it as a sign that the partnership worked. The more established Big Bear becomes ($146mn Revenues as of ‘21), the more Palantir can expand its Foundry usage. Collaborate to monopolise.
Wejo, a SPAC in which Palantir invested, raises cash by merging with another SPAC. From a Palantir perspective that is good news; for as long as SPACs survive, they keep generating Revenues. Wejo is one of the most strategical Palantir SPACs, as they are developing a platform to be the EV Operating System (Palantir SPACs' Crucial Role in the Network). For details on the transaction please refer to the tweet from @GlogauGordon.
Related Tech trends/Macro:
CPI comes in at 6.5% vs. an estimated 6.5%. This is -0.1% MoM, clearly not groundbreaking, but hints that inflation is set to decrease further, which, in turn, should help the valuations of “growth stocks” like Palantir.
Tweet of the week
Yours,
Arny
Awesome recap, Arny! 💪🏻
Love the thorough research! So much worth the read.