One company has taken the tech world by storm today—Palantir. It is a data analytics company specializing in helping organizations understand massive amounts of data. Palantir is used by businesses, governments, and other institutions to make data-driven decisions.
Over the years, Palantir has experienced rapid growth. It has expanded its reach globally, partnering with private and public sectors to solve some of the world’s toughest problems. This growth has made it a major player in the tech industry.
Explore surprising and interesting facts about Palantir’s growth and its impact on the world today. Dive in!
16 Surprising Insights into the Growth of Palantir
Palantir Technologies was founded in 2003 by Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp. Its original goal was to help organizations analyze complex data for security and intelligence purposes.
Early on, the company worked closely with the US government. Palantir later expanded its offerings to include commercial sectors like healthcare, energy, and finance.
Today, Palantir is a software company that specializes in big data analytics, and it has consistently shown impressive growth. It is also one of the new members of the S&P 500 along with DELL and Erie Indemnity.
Here are 16 surprising facts that highlight the remarkable growth of Palantir:
1. PLTR stock rose by 107% in 2024.
Ranked 9th on the IBD 50 list of growth stocks, Palantir Technologies is a top AI stock to keep an eye on. It has shown impressive stock growth this year, following its 167% rise in 2023. PLTR stock surged 107% by September 2024.
There have been numerous discussions about Palantir being overvalued, with its forward P/E ratio going as high as 93.99 at the time of writing. However, investors remain excited about Palantir.
The enthusiasm for buying PLTR stocks stems from the success of Palantir’s Artificial Intelligence Platform (AIP). This product allows companies to deploy large language models (LLMs) and other advanced AI tools within secure environments. AIP helped secure 27 deals worth $10 million or more in Q2 alone.
All in all, the outstanding gains from 2023 to 2024 highlight the eagerness of the market towards Palantir’s role in the AI sector. Palantir’s rising stock also suggests the public’s awareness of its AI-driven solutions for government and enterprise clients.
| 💡 What is Palantir AIP? Launched in 2023, Palantir AIP marked the company’s entry into the broader AI space. AIP is a tool that helps businesses use artificial intelligence to work with their data. It’s designed to streamline tasks, boost productivity, and protect sensitive information while using AI-driven insights. |
2. Palantir Technologies is worth almost $84 billion.
As of September 20, 2024, Palantir’s market cap stands at $83.31 billion. This figure is a 154.54% increase from the previous year.
Since its initial public offering (IPO) on September 30, 2020, the company’s market cap has surged from $15.76 billion to $83.31 billion. It is equivalent to a 428.68% increase. This growth represents a compound annual growth rate (CAGR) of 52.03%.
Palantir’s rising market cap reflects strong investor confidence as well as the company’s rapid growth. This also signals the growing demand for data analytics and AI-driven solutions.
3. $1.2 billion of Palantir’s revenue comes from government contracts.
By early 2024, Palantir’s customer base had expanded to 554 clients, with government contracts contributing 54.9% of its revenue or $1.2 billion. Commercial clients account for the remaining 45.1% ($1 billion).
Geographically, 61.9% of Palantir’s revenue comes from the United States. The rest of the world contributes 27.5%, with the United Kingdom adding 10.6%.
Palantir’s customer distribution shows its reliance on government contracts. However, it is also evident how Palantir is diversifying its customer base. This suggests stability from government deals and potential growth as it expands into new markets worldwide.
4. Palantir secures $480 million for Maven Smart System deal.
Palantir has secured significant military contracts. A major example is the $480 million contract awarded in May 2024 by the US Department of Defense for its Maven Smart System.
MSS is part of Project Maven. It uses AI to assist military personnel in identifying potential targets. This system will be expanded to various US military commands over five years—including Central Command and Indo-Pacific Command.
Palantir has also been awarded a $178 million contract for the US Army’s TITAN system. TITAN (Tactical Intelligence Targeting Access Node) is an advanced ground station that uses AI to analyze data from satellites, drones, and other sensors.
This technology helps the military identify targets more quickly and improves decision-making during missions. TITAN’s role is to support long-range precision strikes by providing commanders with real-time intelligence.
5. Palantir had 3,375 employees.
As of December 31, 2023, Palantir Technologies had a total of 3,735 employees. This marked a 2.68% decrease in its workforce compared to the previous year, with the company eliminating 103 positions.
Despite the downsizing, Palantir continues to expand its influence. Notable figures are even joining its ranks. For example, US Congressman Mike Gallagher was recently appointed as the head of defense.
His move to Palantir emphasizes the company’s ongoing efforts to strengthen its ties with government and defense sectors, leveraging his experience in national security to bolster its strategic direction.
6. Public companies and individual investors own 63.21% of PLTR shares.
Palantir Technologies has a diverse shareholder distribution, with 63.21% of its shares owned by public companies and individual investors. The strong interest from a broad range of investors is reflected in the average portfolio allocation, with investors dedicating approximately 7.42% of their portfolios to PLTR.
Institutional investors hold 21.97% of the shares, while mutual funds own 12.53%. In contrast, insiders like company executives and board members own only 2.29% of the shares.
The low level of insider ownership may indicate less direct control by company executives. However, strong institutional investor presence may keep Palantir accountable to experienced investors. This distribution shows a combination of long-term strategic interest and public investment.
7. Vanguard Group and BlackRock are major institutional investors in Palantir.
Palantir’s ownership structure is notable for its mix of large institutional investors and key insiders. Vanguard Group owns 9.4% of the company, and BlackRock holds 4.7%. These large asset management firms play a significant role in Palantir’s governance.
When it comes to executives that hold significant shares of the company, co-founder Peter Thiel holds a 7.2% stake. He is one of the largest individual shareholders. Meanwhile, CEO Alex Karp only holds 2.5%.
8. Palantir’s revenue rose by 27% in Q2 this year.
Palantir has seen significant revenue growth, particularly in Q2 2024 which showed a 27% increase. The data analytics company garnered $533 million in the second quarter of this year.
The company also raised its revenue forecast for the year to between $2.74 billion and $2.75 billion—a slight increase from analysts’ forecast of $2.7 billion. Government revenue rose by 23%, while commercial revenue increased by 33%. US commercial revenue saw the biggest jump, rising to $159 million.
Palantir’s Q2 2024 revenue growth is a sign of strong momentum. Raising its annual revenue forecast above analysts’ expectations also reflects the company’s confidence in its continued growth.
9. Palantir faced internal tensions and business complications due to its co-founder’s support for Trump.
Peter Thiel, Palantir’s co-founder, has been a vocal supporter of Donald Trump, a stance that has at times caused internal friction within the company. Thiel endorsed Trump during his 2016 campaign and played a role in Trump’s transition to the White House.
Thiel’s support for Trump had mixed effects on Palantir. It helped secure lucrative government contracts, but it also created internal tension among employees who opposed Trump’s policies.
While Thiel continues to support Trump’s policies, other Palantir leaders like CEO Alex Karp have distanced themselves from this alignment, with Karp endorsing Joe Biden in 2020.
10. Palantir met heavy backlash for its partnership with the US Immigration and Customs Enforcement (ICE).
Palantir faced significant controversy due to its partnership with ICE. The partnership raised concerns over human rights violations. The company provided ICE with data analytics tools, such as the FALCON and Integrated Case Management systems. The tools were used to track and arrest undocumented immigrants.
Human rights groups, like Amnesty International, criticized Palantir for its role in facilitating these actions. They accused the company of contributing to violations against migrants and asylum seekers.
Palantir defended itself by claiming that its contracts were with ICE’s Homeland Security Investigations (HSI), which focuses on criminal investigations but not deportations.
However, evidence showed that its technology was also used by Enforcement and Removal Operations (ERO), implicating Palantir in deportation efforts. Despite the backlash, Palantir executives maintained that working with ICE was lawful and necessary.
11. Palantir uncovered cyber spies targeting Dalai Lama in a global attack.
In 2008, the Dalai Lama’s office realized it had been targeted by cyber spies to steal sensitive information. A suspicious email containing details of a confidential meeting, not yet made public, alerted officials to a potential security breach.
Palantir Technologies played a crucial role in investigating the espionage. Using its powerful data analysis tools, Palantir helped trace the origins of the cyberattacks—which were linked to a network known as GhostNet.
This network infected computers in over 100 countries letting hackers steal negotiation documents and access private information. Palantir’s software helped investigators analyze large amounts of data and uncover a global network of compromised systems. It revealed the extent of the cyber espionage targeting Tibet and other organizations worldwide.
12. Palantir’s $443M CDC partnership enabled real-time pandemic data insights.
During the COVID-19 pandemic, Palantir partnered with the Centers for Disease Control and Prevention (CDC) to enhance public health efforts through technology. Together, they developed a “Common Operating Picture” to improve data sharing and decision-making.
Palantir’s Foundry platform was used to integrate multiple data sources: hospital capacity, vaccine distribution, infection rates, and more. This gave public health officials a real-time view of the pandemic’s progression.
The partnership aimed to improve decision-making and ensure efficient resource allocation during the health crisis. Palantir was awarded a $443 million contract for this partnership.
13. Palantir partnered with SpaceX in 2024.
Palantir has partnered with SpaceX around June 2024. Using Palantir’s edge AI software, the collaboration focuses on getting real-time data analysis directly in space without relying on Earth-based infrastructure. This partnership helps SpaceX manage its Starlink satellite network more efficiently.
In addition, Palantir is involved in other big space-related projects. For instance, the company secured a $110.3 million contract in 2023 with the US Space Systems Command to support space-related AI applications.
Palantir’s involvement with Space X is expected to bring improvements to space station operations and future commercial space initiatives where they aim to create digital models for enhanced efficiency.
14. In 2010, Palantir faced backlash and apologized for WikiLeaks proposals.
Palantir Technologies faced controversy in 2010 due to its involvement in a proposal aimed at undermining WikiLeaks.
The US Chamber of Commerce was worried about WikiLeaks’ influence after it released classified government documents. This led Palantir and its partners to discuss strategies to discredit the organization.
Their proposed tactics included cyberattacks on WikiLeaks’ infrastructure and discrediting its supporters by spreading misinformation. The details of this plan were exposed when emails from HBGary Federal were leaked.
The revelation caused public outrage. Many people saw it as an attack on free speech. In response, Palantir denied agreeing to any of those plans. CEO Alex Karp apologized and emphasized that the proposals did not reflect the company’s values or intentions.
15. Palantir provided services to more than 32 companies in the Fortune 500.
In Q2 2023, Palantir provides advanced data analytics and AI services to over 32 Fortune 500 companies. Some of its clients are Airbus, Costco, and Pepsi.
For Airbus, Palantir analyzes data from aircraft sensors to make production more efficient and reduce costs. At Costco, Palantir supports supply chain management by analyzing purchasing and inventory data.
For Pepsi, Palantir’s platform helps manage the supply chain by analyzing sales and production data. With such clients, Palantir turns complex data into useful insight.
16. Palantir partners with MAG7 companies.
Palantir has established partnerships with major global companies, including some from the MAG7—specifically Amazon, Google, and Microsoft. With Amazon Web Services (AWS), Palantir’s Foundry platform runs on a flexible and scalable cloud, making it easier for companies to use AI and machine learning.
The company also works with Google Cloud, combining Google’s cloud infrastructure with its data analytics tools to help businesses gain valuable insights. The partnership with Microsoft Azure allows Palantir to provide secure, scalable solutions, especially for industries like healthcare and finance. These collaborations help Palantir offer better data solutions to its clients.
Conclusion
Palantir Technologies has seen remarkable growth—with its stock rising 107% in 2024, a market cap of almost $84 billion, and millions worth of significant contracts. The company’s role in AI and data analytics is just starting to expand.
As Palantir continues to grow, everyone wonders: Will its momentum persist? Or could the challenges it faces slow its trajectory?
FAQs
Who is Palantir’s biggest competitor?
In the Big Data Analytics sector, Palantir’s major competitors are Databricks, Azure Databricks, and Apache Hadoop.
Who is the biggest client of Palantir?
Palantir’s biggest client is the U.S. government, specifically its defense and intelligence sectors. Accounting for over 50% of its revenue, Palantir has partnerships with the Department of Defense, CIA, and the US Army.
Where will Palantir be in 5 years?
In five years, Palantir is poised to grow significantly. With 35% of its 2022 revenue from commercial clients, the company aims to balance government and private contracts. Continued international expansion and strategic acquisitions could push annual revenues above $4 billion.
References
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