"The product brought them back" | Palantir Bullets #25

This week's Palantir developments and the crowned “Tweet of the Week”

Arny Trezzi

and

Emanuele Marabella

May 08, 2023

Editor: Emanuele Marabella

Hi, I’m Arny. Thank you for joining 1.799 investors who receive the deepest Palantir research. Please hit the ❤️ button if you enjoy today’s article.

Palantir is dropping its Q1 results today after market closes. I discussed the key factors that I expect will influence the results in the latest article (Palantir Q1 preview - Narrative craft?) and at the Palantir Weekly Podcast. Will Palantir’s management surf the AI wave like the Big Techs have done in their recent earnings call? Stay tuned.

Palantir CEO Alex Karp, in an interview at the Sedona Forum, reiterated the importance of increasing the software defense budgets to 5/10% of the defense spending. Here is Karp’s proposal:

“One percent of all spending goes to software proven on the battlefield and every six months it goes up by a percent until you get to ten percent.” - Alex Karp, Palantir CEO

Palantir launched FedStart, a product set to become the key enabler for commercial companies to work with the government by leveraging Palantir’s compliance infrastructure and accreditations. FedStart, priced based on consuption, could be considered an “Accreditation as a Service.”

“Companies that are part of the FedStart program benefit from FedRAMP and IL5 compliance managed by Palantir, with Palantir responsible for government ATO conversations, compliance artifacts, continuous monitoring, and control assessments.” - Palantir Website

Palantir launched Foundry for Cloud Cost Management aimed at helping clients reduce their cloud bills in the same way Palantir has been able to optimize the spending for itself.

"In 6 months we reduced our annual cloud spend by 30%.” - Palantir whitepaper

BP, the British Energy leader and one of the biggest Palantir clients, endorsed Palantir in its earnings call.

“The number was $14/barrel lifting cost back in 2012 or 2013, and we are all the way sub $6 per barrel now […] thanks to help from Palantir, a great partner we have.” - BP Q1

Either Square, the author of
Palantir's Missing Link
, discovered that the GM Foundry link has returned to active after it went down a couple of years ago. This seems a similar dynamic to that of Coca-Cola, which was an early client and returned after a couple of years. Probably their attempt to build an “internal Palantir” failed.

“The product brought them back.” - Alex Karp, 22Q2 Earnings Call

Either Square also discovered that Telefonica, the biggest Spanish telco, has a Palantir Foundry active link. The expansion in Spain seems to continue. Hala Palantir!

“The fact that they now have a direct link inside of the Foundry system is a testament to what I’m saying here; that Spain is discovering Foundry for the commercial world.”-Palantir’s Missing Link

Palantir ranks among the best products at Gartner, a leading IT research provider. From the reviews, it seems Palantir Foundry is an exceptional product, yet it seems there is room to improve in the pricing strategy, which was the main driver of the less positive reviews.

“It’s hard to compare Palantir Foundry with any other product on the market.” - client review at Gartner

Samsung banned generative AI usage after ChatGPT data leak. Palantir’s newly launched Artificial Intelligence Platform (AIP) tackles exactly this problem.

“The company is concerned that data transmitted to such artificial intelligence platforms including Google Bard and Bing is stored on external servers, making it difficult to retrieve and delete, and could end up being disclosed to other users, according to the document.” - Bloomberg

Akshay Krishnaswamy, Palantir's Chief Architect, dropped a cryptic tweet which seems a poster from the very early Palantir days.

"Whatever the name of the package, the software in the package hasn't changed. It is still the highest quality business software you can buy from your microcomputer."

Codestrap released an article on how Palantir Foundry and AIP can redefine the landscape of AI applications and decision-making.

“These capabilities are unmatched and light years ahead of products like ChatGPT, where basic visualizations from Excel data are considered cutting-edge.” - CodeStrap