# Palantir CEO Alex Karp rages against short sellers 

*Chaotic Good* · https://www.youtube.com/watch?v=4qILL12y6qg

## Summary

Palantir CEO Alex Karp responds angrily to short sellers targeting his company, arguing they are attacking the most important software company in America and the AI revolution itself. He defends Palantir's valuation by citing exceptional metrics like a rule of 114, 121% US commercial growth, and 77% aggregate US growth. He suggests the short positions, including Michael Burry's reported $912 million bet, may amount to market manipulation. Karp concludes that Palantir will keep delivering strong numbers and he will be 'dancing' when the shorts are proven wrong.

## Key points

- Karp calls Palantir the most important software company in America and the world in terms of impact.
- He cites a rule of 40 score of 114, US commercial growth of 121%, and aggregate US growth of 77% off a $4.5 billion base.
- Karp says short sellers have been wrong about Palantir being overvalued at 10 and at 20.
- He references Michael Burry's roughly $912 million short position against Palantir and Nvidia, framing it as a bet against AI.
- Karp alleges the short sellers' behavior may be market manipulation and questions whether Burry is trying to exit his position.
- He compares a rule of 114 to an Olympic-grade score, saying 50 to 70 is already elite like Michael Phelps or Michael Jordan.
- Karp argues most GDP growth in the country is because of AI and the real question is growing worker-available GDP.
- He says shorting is fine in theory, but critics should pick a target not doing a 'noble task.'
- Karp claims Palantir has been right on all major decisions for almost 20 years, focused on creating unfair advantages for America and its allies.

## Notes

### Karp's reaction to short sellers
- Karp says short sellers attacking Palantir, "clearly the most important software company in America and therefore in the world," are simply trying to make money and calling the AI revolution into question.
- He finds it "super triggering" that they picked the company that supports war fighters and has "made money for the average person."
- He says the attacks are motivating: every time shorts target Palantir, the company triples down on producing better numbers, "part honestly to make them poorer."

### Persuasive versus right
- Karp says the key question, also raised in his biography, is whether a person is persuasive or actually right.
- He argues Palantir is about pragmatic decisions creating unfair advantages for America and its allies, and has been right on all major decisions for almost 20 years.

### Valuation defense
- Critics thought Palantir was overvalued at 10 and at 20.
- Karp challenges anyone to find a company with a rule of 114, US commercial growing at 121%, aggregate US growth of 77%, anomalous free cash flow, and full customer alignment.
- He compares a rule of 114 to an Olympic-grade score, noting 50 to 70 is already elite, like Michael Phelps or Michael Jordan.
- He cites 121% growth off almost a $1.5 billion US commercial run rate and 77% US growth off an aggregate base of $4.5 billion, and says he predicted the company would get here.

### Michael Burry's short position
- Michael Burry put on a nearly billion-dollar short — $912 million — which Karp reads as a short on AI, targeting Palantir and Nvidia, with Palantir the biggest position.
- Karp suspects market manipulation and suggests Burry may be trying to get out of his position without looking like a fool.

### Broader societal critique
- Karp describes a "tale of two cities" between experts and retail, criticizing newspapers and sympathy for experts who don't need it.
- He argues most GDP growth in the country is because of AI, and the real question is how to grow worker-available GDP.
- He calls the shorts' behavior egregious and says he will be "dancing around" when it is proven wrong.

## Transcript

[00:00] I'm trying to understand just if you look at sort of the growth trajectory, the sales, how much of the sales frankly I think actually even coming there's a huge part coming from even existing customers and just what the scale of this thing ultimately looks like in your mind. Okay, there are two parts. You know, of course, when I hear short sellers attacking uh what I believe is clearly the most important software company in America and therefore in the world in terms of our impact simply to make money and calling trying to call the AI revolution into question where we have these this anomalous numbers 114, rule of 40, etc. It just is super triggering because these people they could pick on any company in the world.

[00:38] They have to pick on the one that actually helps people that actually has made money for the average person. that that is actually supporting our war fighters. Why do they have to go after us? And I'll tell you what though, it's crazy motivating because I'll tell you why the short sellers are constantly getting screwed by Palanteer because every time they short us, we just are like tripling down on getting the better numbers and part honestly to make them poorer. But okay, so um the the the the the question of like uh the actual power of the business and what is it worth? I mean at the end of the day one of the things that is actually in the book the the biography and that I actually think that you always have to ask to to the is

[01:18] the person persuasive or are they right and across all sorts of movements political I mean you see this on the regressive part of the Democratic party we're about to probably have a complete disaster I was born in New York like but if you actually said do these things actually work everyone's like of course I'm not going to vote for that but instead they asked does it work in theory the theoret politicians, you have to ask how often have you been right? And Palanteer is about pragmatic decisions that create unfair advantages for America and its allies. And on that, we've been right for almost 20 years on all major decisions. And I believe we'll be right going forward. Now, you could argue, I don't know, like they're

[01:58] constantly like, but they they thought Palanteer was overvalued at 10. They thought it was overvalued at 20. I'm not even here saying what the valuation is. I'm just saying find a company in the world that has a rule of 114 that has US commercial growing at 121% that aggregate growth in the US is 77% that has throwing off free cash flow in a way that's anonymous and that is fully aligned with our customers and you figure out the value but they're in the business of being skeptical and being wrong and we're in the business of giving an unfair advantage to American workers, American war fighters and our investors. Being short is is a very difficult place to be because you can lose everything, right? You can drive

[02:37] these people into the ground. Michael Bur put a really big bet on. It's almost a billion dollars. It's 912 million dollars. That's a big step for him to put into that. What when you say you redouble your efforts, what do you do? What do you go back in? >> Um, well, first of all, he's it's like he's actually putting a short on AI. So, the way I read it was us and Nvidia and it's like >> the biggest position is you though. I just threw all the shorts. >> Okay. So, and and then by the way with the shorts is very complex. It's not even clear that I honestly I think what is going on here is market manipulation. We delivered the best results everyone anyone's ever seen. It's not even clear he's not doing this to get out of his

[03:12] position. I mean these people they claim to be ethical, but you know like they're they're actually shorting one of the great businesses of the world. And I'm not against shorting as a matter of theory, but I'm just saying pick something that is not doing a noble task. And you know, it's us against them. And that's a good position for us. I I mean, look, when you're printing a rule of 114, again, people who aren't technical, I think roughly a an incredible score, like an Olympic grade score on rule of 14 is like 50. I mean, that's roughly like if you're between 50 and seven, you're an Olympic athlete, a unique influential athlete. This is like Michael Phelps like score like Michael Jordan. Like there are no scores like

[03:48] this there. and and 121 growth off of almost a 1.5 run rate in US commercial and a 77 77% growth in the US and an aggregate off of an aggregate base of of $4.5 billion. By the way, I predicted we'd get here. So, you know, it's like I if you want to short that, be my guest. You go ahead. We're just going to go do our things. I mean, look, I'll tell you there's a tale of two cities in our society. We need experts versus retail. And you see it like, you know, I don't know why these newspapers are running helping Mandani win. I don't know why we can't have honest discussions about our future. I don't know why we have to allow fentanyl attack. But it's almost always sympathy for the expert that doesn't need it. The short seller that

[04:35] has some ridiculous reason for doing something against I mean most of GDP growth in this country is because of AI. The real question is how do we grow that and expose workers? What is the worker available GDP? That's the question for our society. Instead of aligning on that, we've got these completely. And again, if the numbers weren't there, great. Be my guest. But then the numbers are there. So then you you're not it's not even clear he's actually shorting us. It's it's probably just how do I get my position out and not look like a fool. I don't know. But I do think this behavior is egregious and I'm going to be dancing around when it when it when it proves it's proven wrong.