Palantir Technologies PLTR shares diverged from the market’s upward trend after a short report questioned the company’s AI capabilities. CEO Alex Karp, undeterred by the criticism, focused on the technology’s potential during Palantir’s AIPCon customer conference on Thursday.
What Happened: Karp, in an interview with Bloomberg ahead of the conference, said he was confident about Palantir’s superior product, highlighting customers’ willingness to pay a fair price for it.
Addressing concerns about the risks of AI in military hands, Karp suggested the U.S. should take the lead in developing these systems rather than ceding ground to rivals.
“Are these dangerous? Yes, but either we will wield them or our adversaries will,” Karp said. "I'm not sure we should even sell this to some of our clients."
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Palantir’s software is utilized by defense forces in the U.S. and Ukraine for satellite image interpretation. Karp revealed that the number of customer inquiries received in a month surpassed the usual yearly volume, underscoring the growing interest in Palantir’s offerings.
In a thinly veiled critique of tech innovators advocating for a pause in AI development, Karp commented, “We have lots of people who don’t want to roll this out because they have nothing to roll out.”
Why It’s Important: Palantir, as a provider of business intelligence software, has leveraged AI to aggregate and analyze data over the years. The company now boasts an AI platform known as AIP.
Following the release of its quarterly results in early May, Palantir’s shares have surged nearly 100%, bolstering the belief in the company’s AI prospects.
However, RBC Capital Markets analyst Rishi Jaluria believes that Palantir falls significantly short as an AI company, suggesting that the technology poses more challenges than benefits for the company.
Price Action: Palantir’s stock closed Thursday’s session at $14.54, marking a 1.16% decline, according to data from Benzinga Pro.
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