Alex Karp, CEO of Palantir Technologies Inc. PLTR has cautioned that Europe could face ruin if it does not adopt artificial intelligence (AI) innovation.
What Happened: “As America once again forges ahead, our allies and partners in Europe are being left behind,” Karp stated in a letter to shareholders on Monday.
His warning came as Palantir’s business growth accelerates, surpassing expectations due to the robust demand for advanced AI technologies from U.S. government and commercial customers.
The company’s revenue in the last quarter reached a record $726 million, a 30% increase from the same period last year.
Palantir’s year-over-year revenue growth rate has increased over the past six quarters, rising from 13% in the second quarter of 2023 to 30% in the third quarter of 2024.
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In his letter, Karp attributed this growth to early and decades-long investment in technical infrastructure, which is now making large language models valuable to large enterprises.
Palantir has also joined the S&P 500, a goal many thought was fanciful. The company’s entry into the index was made possible by the strength of its business and expanding demand for its software, he stated.
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Why It Matters: Karp’s warning to Europe comes in the wake of Palantir’s record-breaking Q3 2024 results, which were driven by an “unrelenting AI demand that won’t slow down.”
The U.S. market remains the core of Palantir’s business, where institutions have responded most rapidly to the promise of AI.
The release of Palantir’s newest platform, AIP, has transformed the business, with U.S. revenue reaching $499 million in the third quarter, a 44% increase compared to the same period a year earlier.
Wedbush analyst Dan Ives referred to Palantir as the “Messi of AI” following the company’s robust earnings. The company’s customer count grew 39%, and it raised its full-year outlook across all metrics.
Palantir’s AI gamble has also paid off, with one customer increasing its annual recurring revenue twelvefold in less than eight months after implementing the company's AI platform.
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