Palantir, one of the holdings in the EasyETFs AI World Actively Managed ETF by EasyAssetManagement, is a software powerhouse at the forefront of artificial intelligence and data analytics, redefining how organizations turn complex data into actionable insights. Its suite of powerful platforms - Gotham, Foundry, Apollo, and the groundbreaking Artificial Intelligence Platform (AIP) - transforms data from an abstract resource into a strategic asset. In this blog Shaun Krom, Chief Investment Officer (CIO) at EasyAssetManagement, explains Palantir's story and its potential, and how this cements it as a leader in the AI landscape
Gotham and Foundry: The Dynamic Duo Behind Data Mastery
At the heart of Palantir’s success are two primary platforms: Gotham and Foundry, each designed with a distinct purpose. Gotham, which initially garnered traction within the U.S. government, functions as a highly customizable, secure toolset that agencies use to handle complex data integration and analysis. By enabling the intelligence community to identify threats and anomalies through powerful algorithms, Gotham is the go-to solution for public-sector clients in need of sophisticated, tailored insights.
Meanwhile, Foundry, Palantir’s solution for commercial clients, embodies scalability and flexibility. Unlike Gotham, Foundry was engineered to be adaptable right out of the box, with app integrations and developer kits that allow commercial clients to plug in and start using it quickly. Foundry lets companies across industries - from finance to healthcare - optimize processes, reduce costs, and scale effortlessly. Yet, it remains deeply customizable, allowing clients to fine-tune its capabilities as needed, a differentiator from most business software offerings.
Apollo: The Engine Powering Seamless Integration
While Gotham and Foundry drive insight, Apollo serves as the underlying engine that keeps everything running smoothly. Apollo is Palantir’s continuous integration and delivery (CI/CD) platform, essential for automating software deployment, updates, and maintenance. With Apollo, Palantir’s clients can focus on interpreting data insights instead of wrestling with backend infrastructure. Through Apollo, Gotham and Foundry are continuously updated with the latest capabilities, giving Palantir an edge by ensuring clients operate on a future-proof foundation. By managing software intricacies across vast data sources, Apollo frees organizations to focus on their strategic goals rather than technological obstacles.
AIP: An AI Revolution with Real-World Impact
The crown jewel in Palantir’s offerings is its Artificial Intelligence Platform (AIP), a GenAI-powered suite of tools that promises to usher in a new era of intelligent decision-making for enterprises. AIP is positioned as the “cloud of AI” for its ability to manage end-to-end deployment of generative AI applications, eliminating the complexity of AI implementation for clients. Just as Amazon Web Services revolutionized data hosting by handling all infrastructure needs, AIP does the same for enterprise AI. With AIP, companies can harness generative AI models without the hassle of building, training, or maintaining them.
The platform’s early adopters have achieved remarkable results. For instance, Lowe’s cut its overdue task rate by 75% using AIP, while General Mills saved $14 million annually through automation and optimization. The versatility of AIP spans industries and clients, from automating healthcare documentation to optimizing government intelligence. This transformational technology is the result of Palantir’s deep commitment to “data in action” - a philosophy that moves beyond theoretical applications and into real-world impact.
The Business of Demand: Palantir’s Financial Surge
Palantir’s recent financial results reflect its robust demand across both government and commercial sectors, especially within the U.S. government where revenue surged by 40% year-over-year. Meanwhile, U.S. commercial revenue rose 54%, driven by a mix of returning clients and a growing new customer base. In recent months, Palantir has inked several high-value contracts, including multiple seven-figure deals that closed within just three months, showcasing the increasing urgency with which clients are adopting its solutions. However, growth in international markets has been slower, particularly in Europe, where regulatory pressures have created headwinds.
The strong demand for AIP is evident in Palantir’s unique approach to selling: the company launched its “bootcamps,” intensive hands-on events designed to fast-track clients from initial onboarding to operational use within five days. These bootcamps have ignited U.S. interest in AIP, marking it as a standout revenue driver and reflecting a high level of client engagement.
Strategic Strength in AI: More Growth, Less Cost
Palantir’s business model stands apart from other AI firms by its focus on the application layer, where it extracts value from generative AI without requiring extensive capital expenditure. Unlike companies like Nvidia or Broadcom that invest heavily in infrastructure, Palantir partners with cloud providers to access computing power, allowing it to capture growth without substantial CapEx. This model not only sustains growth but does so with an enviable margin profile. Palantir’s expertise in creating bespoke, client-specific applications using industry-specific language models further strengthens its position. Rather than relying on one-size-fits-all models, Palantir creates tailored solutions, ensuring each client can fully realize the value of their data.
The Art of AI Partnership: Palantir’s Shift Toward Collaboration
Historically, Palantir has operated independently, but recent efforts reveal a shift toward collaboration with clients and partners. From offering FedRamp certifications to partnering with hyperscalers, Palantir’s approach now emphasizes cooperation, making it a team player in the broader tech ecosystem. This strategy is already yielding returns: many of Palantir’s largest clients are now openly promoting their partnerships, a rarity for a company previously known for its secrecy. As Palantir builds trust and visibility through these relationships, it’s poised to capture even larger deals and expand its influence.
The American Edge and International Outlook
Palantir’s CEO, Alex Karp, has been vocal about the rapid AI adoption taking place within the U.S., where he credits an openness to innovation among industry leaders and regulators alike. The company’s impressive 15% quarter-over-quarter growth in U.S. government revenue is a testament to this momentum. Conversely, Palantir’s slower growth in Europe highlights the challenges of operating in markets with stricter regulations and a more cautious approach to AI. Karp has urged European policymakers to take a more flexible approach to AI regulation, hoping that looser policies will allow European companies to remain competitive in the global AI race.
An Expanding Frontier
As Palantir accelerates its journey to becoming a GenAI powerhouse, it is one of the few software companies demonstrating real financial gains from AI. Clients are experiencing substantial ROI, whether it’s through cutting costs, enhancing productivity, or capturing new revenue opportunities. For investors, Palantir’s premium valuation - trading at over 40x sales - may give pause, it is the main reason we have only a small allocation to the company while we continue to evaluate it verses other alternatives. But the company’s blend of technological prowess, unique positioning, and real-world impact makes it a compelling long-term play. Palantir is not merely a software provider; it is a strategic partner guiding industries through the data-driven future. For those with a long view, Palantir’s trajectory suggests a lasting role in the AI economy, driven by unmatched execution and transformative solutions.
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