1 00:00:52,280 --> 00:00:55,117 Obviously, we are loving these results 2 00:00:55,200 --> 00:00:59,717 and um uh loving what they mean for our 3 00:00:59,800 --> 00:01:02,077 customers and and broadly speaking the 4 00:01:02,160 --> 00:01:05,317 West. Um so 5 00:01:05,400 --> 00:01:08,397 reflections on how we got to 93% 6 00:01:08,480 --> 00:01:09,917 aggregate growth, 7 00:01:10,000 --> 00:01:13,917 just under 150% growth in US commercial 8 00:01:14,000 --> 00:01:17,277 and an aggregate growth of 115% in 9 00:01:17,360 --> 00:01:20,597 America, which is astonishing, uh even 10 00:01:20,680 --> 00:01:23,197 surpassing the already anomalous results 11 00:01:23,280 --> 00:01:25,597 we've posted in the past and at a very 12 00:01:25,680 --> 00:01:28,757 significant scale. Um And and this the 13 00:01:28,840 --> 00:01:31,317 the the story really does begin 14 00:01:31,400 --> 00:01:33,557 uh at the beginning when we dedicated 15 00:01:33,640 --> 00:01:39,037 ourselves to our most important partners in the US government and we we built 16 00:01:39,120 --> 00:01:42,597 products to deliver value for them. 17 00:01:42,680 --> 00:01:45,997 We delivered those uh value for those for them 18 00:01:46,080 --> 00:01:48,637 by looking at the world in its naked 19 00:01:48,720 --> 00:01:52,037 state. We did not have uh soft We did 20 00:01:52,120 --> 00:01:55,837 not have AI available. We had to work with NLP. So, we had to develop forward 21 00:01:55,920 --> 00:02:00,637 to play uh engineer model to extend the technology and deliver value. The The 22 00:02:00,720 --> 00:02:03,317 nascent version of ontology was developed. 23 00:02:03,400 --> 00:02:07,037 Sham, Aki, others strapped 24 00:02:07,120 --> 00:02:08,997 Blackberries around their head and made 25 00:02:09,080 --> 00:02:12,237 the code work in sensitive environments. 26 00:02:12,320 --> 00:02:14,277 And what we learned and what was built 27 00:02:14,360 --> 00:02:16,717 into this company is that there are 28 00:02:16,800 --> 00:02:20,397 there are things, values, structures 29 00:02:20,480 --> 00:02:25,237 that are more important than purely uh 30 00:02:25,320 --> 00:02:30,117 extracting value from a client. And we rejected the the way in which we were 31 00:02:30,200 --> 00:02:33,757 being taught in Silicon Valley to build a 32 00:02:33,840 --> 00:02:37,397 software company at the time. Palantir, of course, is now both infrastructure 33 00:02:37,480 --> 00:02:41,357 software FTEs, orchestration, and business know-how. So, it's a completely 34 00:02:41,440 --> 00:02:45,877 different hybrid. But at the time, we were being told our job was to trick the 35 00:02:45,960 --> 00:02:49,557 clients into giving us money for something that made them attached to us, 36 00:02:49,640 --> 00:02:52,517 but really uh really added no value. So, 37 00:02:52,600 --> 00:02:55,877 essentially a parasitic model. Um and in 38 00:02:55,960 --> 00:02:58,677 the rejection of that, we fully aligned 39 00:02:58,760 --> 00:03:01,557 with our partners. Now, we To do that, 40 00:03:01,640 --> 00:03:03,397 as we went through the years, we built 41 00:03:03,480 --> 00:03:07,477 we built PG, Foundry, Gaia, Maven, 42 00:03:07,560 --> 00:03:11,437 Ontology, AIP. Now, we're taking the AIP 43 00:03:11,520 --> 00:03:15,637 stack and extending it for sovereign AI, which requires us to be able to 44 00:03:15,720 --> 00:03:17,677 orchestrate and fine-tune models to 45 00:03:17,760 --> 00:03:20,317 provide a completely sovereign stack to 46 00:03:20,400 --> 00:03:22,677 our partners. But what What is the 47 00:03:22,760 --> 00:03:25,197 philosophical importance of that? We are 48 00:03:25,280 --> 00:03:28,237 offering a present that 49 00:03:28,320 --> 00:03:30,717 that augurs to a future that we want to 50 00:03:30,800 --> 00:03:32,517 live in. What does that future look 51 00:03:32,600 --> 00:03:35,357 like? We have more rights in the PG 52 00:03:35,440 --> 00:03:37,957 frame, there's it's safer. In the 53 00:03:38,040 --> 00:03:42,957 sovereign AI frame, which is arguably by far the most important because, you 54 00:03:43,040 --> 00:03:46,277 know, all these other things are downstream from GDP growth and GDP 55 00:03:46,360 --> 00:03:50,437 health. And what if we transform America into the only democracy that actually 56 00:03:50,520 --> 00:03:53,957 grows, where the where production is more efficient and manufacturing 57 00:03:54,040 --> 00:03:56,357 actually happens. What is that frame? 58 00:03:56,440 --> 00:03:59,557 That frame is not uh you are going to 59 00:03:59,640 --> 00:04:02,517 buy into a future where you have no job, 60 00:04:02,600 --> 00:04:07,197 where adversaries win, and everybody who does win is a small tiny group of people 61 00:04:07,280 --> 00:04:12,037 living in a tiny place that somehow believes because they eat vegetables and 62 00:04:12,120 --> 00:04:15,437 they don't support war fighters that they deserve to have the total means of 63 00:04:15,520 --> 00:04:17,517 production of this country, uh and the 64 00:04:17,600 --> 00:04:22,517 rest of us should just sit by back and absorb the cost of that revolution, 65 00:04:22,600 --> 00:04:25,197 which we're paying for. How are we paying for it? 66 00:04:25,280 --> 00:04:27,717 In the in the enterprise context, people 67 00:04:27,800 --> 00:04:31,037 sign up for token uh self-pleasurings, 68 00:04:31,120 --> 00:04:33,757 and those that and that at a real cost 69 00:04:33,840 --> 00:04:36,237 like other forms of self-pleasuring. 70 00:04:36,320 --> 00:04:38,317 Where you are paying for the right for 71 00:04:38,400 --> 00:04:43,797 them to migrate your IP, your know-how, your expertise to their model so that 72 00:04:43,880 --> 00:04:47,277 they can build a competitive business that doesn't require your business, your 73 00:04:47,360 --> 00:04:50,717 people. And why are they doing it? It's actually being done for what they 74 00:04:50,800 --> 00:04:54,797 believe are moral reasons. They are superior to you. They deserve to 75 00:04:54,880 --> 00:04:59,717 colonize your enterprise. You deserve to be colonized. And in Palantir, in A, 76 00:04:59,800 --> 00:05:01,237 it's interesting, it doesn't work as 77 00:05:01,320 --> 00:05:04,277 well or as efficient purely on the alpha 78 00:05:04,360 --> 00:05:08,757 side as having an application layer owning your compute witness we built a 79 00:05:08,840 --> 00:05:13,237 partnership with Nvidia. We're expanding our application layer. We are going to 80 00:05:13,320 --> 00:05:14,957 enter the market and already entering in 81 00:05:15,040 --> 00:05:17,277 the classified space as Sham alluded to 82 00:05:17,360 --> 00:05:20,557 of of fine-tuning models. So, the models 83 00:05:20,640 --> 00:05:23,037 actually fine-tuned by us in our 84 00:05:23,120 --> 00:05:27,797 enterprise on Nvidia stack outperform frontier models. And you own the 85 00:05:27,880 --> 00:05:31,677 weights. You own the alpha. You own everything. Every single enterprise in 86 00:05:31,760 --> 00:05:35,397 this country is going to either look at doing this, find ways of doing it, or at 87 00:05:35,480 --> 00:05:37,397 least avoid the alternative of 88 00:05:37,480 --> 00:05:42,637 unprotected interaction with frontier models. This is very dangerous. You're 89 00:05:42,720 --> 00:05:45,717 warned about this in high school. And now you're learning about it in your 90 00:05:45,800 --> 00:05:49,597 enterprise. And in Palantir, we are at the front line we are in the front of 91 00:05:49,680 --> 00:05:54,037 driving this revolution. I am driving the business to grow at a 92 00:05:54,120 --> 00:05:57,117 rate equal or above to what we have in US 93 00:05:57,200 --> 00:05:59,317 commercial for the next 18 months, which 94 00:05:59,400 --> 00:06:04,477 is a very high goal, but it is one we can actually get to because we are fully 95 00:06:04,560 --> 00:06:07,837 aligned with what's right and what's good and what actually works well in an 96 00:06:07,920 --> 00:06:09,837 enterprise. And for the first time, 97 00:06:09,920 --> 00:06:11,637 people believe us. And if you didn't 98 00:06:11,720 --> 00:06:14,877 believe us, you can believe 149% growth 99 00:06:14,960 --> 00:06:17,677 in the US, a rule of of of of 40 that's 100 00:06:17,760 --> 00:06:22,997 155, 93% aggregate growth, and 90% growth 101 00:06:23,080 --> 00:06:27,597 uh in US com with 62-63% 102 00:06:27,680 --> 00:06:31,677 uh free cash flow margins. People thought we wouldn't be profitable. 103 00:06:31,760 --> 00:06:35,917 So, this is one of the more exciting times to be at Palantir. It's one of the 104 00:06:36,000 --> 00:06:39,077 more exciting times to participate in Palantir. And for everyone on the 105 00:06:39,160 --> 00:06:42,477 sidelines, you got to get off the sidelines. This is a revolution that 106 00:06:42,560 --> 00:06:46,637 will affect the sovereign revolution, where you stand in it, will affect your 107 00:06:46,720 --> 00:06:48,717 livelihood, the livelihood of the people 108 00:06:48,800 --> 00:06:50,637 you care, and whether America and the 109 00:06:50,720 --> 00:06:54,197 West win. We cannot regress to a thin 110 00:06:54,280 --> 00:06:58,597 philosophical model where only a small group of people who think very 111 00:06:58,680 --> 00:07:03,357 differently than most of us actually absorb all of the revenue and value in 112 00:07:03,440 --> 00:07:06,677 our business and transfer all of the dangers to us. 113 00:07:06,760 --> 00:07:10,437 And that's what this revolution is about, and it's extre- extremely 114 00:07:10,520 --> 00:07:12,757 motivating for those of us at Palantir. 115 00:07:12,840 --> 00:07:16,117 Thank you. >> Thanks, Alex. Our first question is from 116 00:07:16,200 --> 00:07:19,277 Dan with Yorkville Ives. Dan, please turn on your camera, and then you'll 117 00:07:19,360 --> 00:07:22,840 receive a prompt to unmute your line. 118 00:07:30,040 --> 00:07:33,437 >> Where's the prompt? >> [clears throat] 119 00:07:33,520 --> 00:07:37,197 >> Well, while we're waiting, you can be entertained. 120 00:07:37,280 --> 00:07:40,637 >> Maybe we can circle back to Dan. Um our next question is from Mariana with Bank 121 00:07:40,720 --> 00:07:44,037 of America. Mariana, please turn on your camera and then you'll receive a prompt 122 00:07:44,120 --> 00:07:46,960 to unmute your line. 123 00:07:48,600 --> 00:07:51,357 >> I think I'm good. Um, thank you. Can Can 124 00:07:51,440 --> 00:07:56,117 Can you walk through this at the the sovereignty boot camp? 125 00:07:56,200 --> 00:08:00,917 What did you learn with talking to customers that maybe 126 00:08:01,000 --> 00:08:04,637 you weren't expecting? I mean, obviously just an overwhelming sort of group of 127 00:08:04,720 --> 00:08:07,517 executives. Can you just talk about that, Alex? 128 00:08:07,600 --> 00:08:11,637 >> Well, first of all, yeah, for those of you not in the know, we we we did a 129 00:08:11,720 --> 00:08:16,157 sovereign boot camp after this kind of revolution exploded. Um, and just to 130 00:08:16,240 --> 00:08:20,557 give the backdrop here, you know, 2 years ago, we were said we we spent four 131 00:08:20,640 --> 00:08:25,477 or five months, Sasha who runs this, organizing AIP Con. This was much more 132 00:08:25,560 --> 00:08:29,557 like, "Hey, let's invite our buddies over to lunch." And then all of a sudden 133 00:08:29,640 --> 00:08:33,317 we start getting bombarded by people, people we invited, people we didn't 134 00:08:33,400 --> 00:08:37,277 invite, all levels of the business. So, like when you're working in enterprise, 135 00:08:37,360 --> 00:08:40,517 it's really important that the operational people are interested. So, 136 00:08:40,600 --> 00:08:43,877 it was like CEOs, operational leads. Um, 137 00:08:43,960 --> 00:08:47,677 and there's a a huge educational component and Cham talks about this a 138 00:08:47,760 --> 00:08:52,237 lot. Like we people understand that they need a way of controlling their alpha. 139 00:08:52,320 --> 00:08:55,877 They understand broadly that token maxing is at their own cost and they 140 00:08:55,960 --> 00:08:59,717 certainly understand that token maxing is leading to them transferring their 141 00:08:59,800 --> 00:09:03,077 data, their prompts, the way they run their business, their expertise to a 142 00:09:03,160 --> 00:09:07,717 third party. Um, but they don't they they need education on what they can do 143 00:09:07,800 --> 00:09:11,357 about that with us, preferably, but also without us. How do you do contracts? How 144 00:09:11,440 --> 00:09:14,397 do you How do you work with How do you work with open weight models? How do you 145 00:09:14,480 --> 00:09:18,597 work with closed weight models? How does this work in ontology? Is Is ontology 146 00:09:18,680 --> 00:09:22,277 the protective layer that they that they they've been told? Does it create value 147 00:09:22,360 --> 00:09:25,557 the way they How would this look in their own business? And how would they 148 00:09:25,640 --> 00:09:28,997 would they How would they work with the compute stack? And so, there's a just 149 00:09:29,080 --> 00:09:31,277 this massive demand and we're in the 150 00:09:31,360 --> 00:09:33,597 business of educating people, both our 151 00:09:33,680 --> 00:09:38,437 customers and others. But it was a super heterodox group of people both in terms 152 00:09:38,520 --> 00:09:42,757 of the kind of people showed up, the demand for it, and also people we've not 153 00:09:42,840 --> 00:09:46,997 worked for. By the way, you know, one of the reasons the NDR number is so strong, 154 00:09:47,080 --> 00:09:50,157 it's ridiculously strong. I mean, that people always write these things about 155 00:09:50,240 --> 00:09:54,637 customer adoption and maybe, you know, but the NDR number is anomalously 156 00:09:54,720 --> 00:09:58,477 strong. It it That is also going to shift in a even as 157 00:09:58,560 --> 00:10:02,237 as hard as it is to believe, become even more positive because some of our older 158 00:10:02,320 --> 00:10:05,757 partners we haven't really interacted with, they also showed up. 159 00:10:05,840 --> 00:10:09,637 They're like, "Okay, now we now we get why we would need you." And not just 160 00:10:09,720 --> 00:10:12,997 Foundry, they're migrating across our stack. So, customers that were only 161 00:10:13,080 --> 00:10:16,197 using Foundry now want Ontology, now want to be part of the Sovereign AI 162 00:10:16,280 --> 00:10:20,357 stack. I would say last not least, you're asking the internal version, 163 00:10:20,440 --> 00:10:26,117 external version, internally, recruiting, retention, excitement at Palantir. 164 00:10:26,200 --> 00:10:30,237 It's it's I mean, I'm very excited. I think the people 165 00:10:30,320 --> 00:10:32,397 around this table are very excited. Uh 166 00:10:32,480 --> 00:10:35,237 the the legal department is excited. 167 00:10:35,320 --> 00:10:39,397 This I mean, that hasn't happened since like that doesn't happen. Like, they're 168 00:10:39,480 --> 00:10:42,597 out like "Rock on." >> [laughter] >> Uh 169 00:10:42,680 --> 00:10:47,517 so, it's just it's more fun. You know? Uh so, yeah, there's just it 170 00:10:47,600 --> 00:10:51,757 that that's the way this went down. And I think this is going to this is the way 171 00:10:51,840 --> 00:10:55,597 beginning. So, you the way the way at least we think about this internally is 172 00:10:55,680 --> 00:10:59,357 what portion of the market is available to people who want to create value, mean 173 00:10:59,440 --> 00:11:02,957 create value and keep it. That portion of the market has gone from a small 174 00:11:03,040 --> 00:11:05,117 portion of the market where we are we 175 00:11:05,200 --> 00:11:09,997 we're doing where till like a large large part of the US GDP. And that's why 176 00:11:10,080 --> 00:11:12,757 we need partners. Behind the scenes now we're trying to 177 00:11:12,840 --> 00:11:17,357 find partners. Now, partners we need technically exceedingly competent 178 00:11:17,440 --> 00:11:20,197 partners. Partners doesn't mean have We don't have to agree on every 179 00:11:20,280 --> 00:11:23,677 issue. We don't even have to agree on every client. They can occasionally 180 00:11:23,760 --> 00:11:28,317 compete against us. We've seen this in the defense tech stuff. Stack and Sham, 181 00:11:28,400 --> 00:11:32,397 you know, like the approach to defense tech where we partner with people. 182 00:11:32,480 --> 00:11:35,957 Partner doesn't mean we agree, sometimes we compete, but it means we're marching 183 00:11:36,040 --> 00:11:39,197 in a similar direction that allows us to scale. So, those things are going to be 184 00:11:39,280 --> 00:11:41,877 a very big important part of like 185 00:11:41,960 --> 00:11:46,717 essentially the guide. Why am I pushing the company to to grow not to the just 186 00:11:46,800 --> 00:11:48,637 to the end of the year, but next year? 187 00:11:48,720 --> 00:11:51,317 It's because that also forces us to to 188 00:11:51,400 --> 00:11:56,240 find ways to scale to meet the demand that's out there. 189 00:11:57,120 --> 00:12:00,877 >> Thanks, Alex. Our next question is from Mariana with Bank of America. Mariana, 190 00:12:00,960 --> 00:12:03,317 please turn on your camera and then you'll receive a prompt to unmute your 191 00:12:03,400 --> 00:12:08,037 line. >> Good afternoon, everyone. 192 00:12:08,120 --> 00:12:09,277 >> Hello. 193 00:12:09,360 --> 00:12:13,277 >> So, a follow-up to to Dan's question. 194 00:12:13,360 --> 00:12:16,997 When all this AI revolution started, right? It was really clear for 195 00:12:17,080 --> 00:12:21,357 enterprises that data and proprietary data and how you train your models was 196 00:12:21,440 --> 00:12:23,837 going to be the key. But then, we're 197 00:12:23,920 --> 00:12:28,637 like 3 years into that revolution and now everyone started to realize, oh, 198 00:12:28,720 --> 00:12:32,877 owning my data and what I really learn from my data is important. What happened 199 00:12:32,960 --> 00:12:37,197 there? Why you think that you positioned yourselves 200 00:12:37,280 --> 00:12:40,597 back then in a different approach to AI that 201 00:12:40,680 --> 00:12:43,197 enterprises weren't able to see? And why 202 00:12:43,280 --> 00:12:48,117 these numbers that reflect that you're the winner of AI today, 203 00:12:48,200 --> 00:12:53,160 it wasn't that clear for any other software application back then. 204 00:12:53,400 --> 00:12:56,917 >> Well, you can kind of divide it up into two parts. There's the first part is 205 00:12:57,000 --> 00:13:00,517 efficacy, you know, and then the second part is efficiency. That's not the quite 206 00:13:00,600 --> 00:13:04,117 the right word, but it's like how do you scale it? In the zero to one phase, it's 207 00:13:04,200 --> 00:13:06,957 much more important to focus on the application layer. Like, okay, this new 208 00:13:07,040 --> 00:13:12,277 thing has happened. How do we turn that into economic value? And then as people 209 00:13:12,360 --> 00:13:15,277 started to experience the economic value and as time started happening, you 210 00:13:15,360 --> 00:13:18,637 started to see that some of the people who were partners out there were 211 00:13:18,720 --> 00:13:21,797 building things that were competitive to you. And I think that took some time to 212 00:13:21,880 --> 00:13:26,677 kind of seep into the psyche and mindset of, wait a second, this is maybe not 213 00:13:26,760 --> 00:13:29,957 you know, now I know this thing is valuable in the right hands on the right 214 00:13:30,040 --> 00:13:34,357 platform, but I also am going to need to control the weights. That the alpha that 215 00:13:34,440 --> 00:13:36,877 is being generated isn't simply the data 216 00:13:36,960 --> 00:13:41,437 that's resident in my enterprise. It's also the metadata, the reasoning traces, 217 00:13:41,520 --> 00:13:46,117 the exhaust, the usage of this, which I don't yet have mechanisms to control. 218 00:13:46,200 --> 00:13:48,877 And now I understand that's actually probably more valuable than just the 219 00:13:48,960 --> 00:13:52,997 data in my enterprise. And that's been a clarion call, I think, for for 220 00:13:53,080 --> 00:13:56,557 the market over the last quarter, two quarters. 221 00:13:56,640 --> 00:13:59,677 >> There's the there's also the clash 222 00:13:59,760 --> 00:14:01,757 question implicit in your question is, 223 00:14:01,840 --> 00:14:04,477 you know, why did we get this right? 224 00:14:04,560 --> 00:14:06,877 And, you know, again, I think it's we 225 00:14:06,960 --> 00:14:11,877 are actually fully aligned with our partners. Sometimes we make decisions 226 00:14:11,960 --> 00:14:15,157 like, you know, that are against our economic interests. Like, we're 227 00:14:15,240 --> 00:14:19,477 supporting lots of institutions in Europe. The growth sucks. 228 00:14:19,560 --> 00:14:23,557 I mean, clandestine institutions. But, without our products, they would have 229 00:14:23,640 --> 00:14:27,237 rampant terrorism and their problems, their migration problems, and the 230 00:14:27,320 --> 00:14:30,957 results would be 10 times worse. It's not actually in our economic interest 231 00:14:31,040 --> 00:14:32,997 anymore to do this, but we still do it. 232 00:14:33,080 --> 00:14:36,877 And this is because we actually are believers, for better or worse. 233 00:14:36,960 --> 00:14:39,557 I would say also, um, this is a company 234 00:14:39,640 --> 00:14:42,157 that from beginning, from inception, has 235 00:14:42,240 --> 00:14:45,397 valued artistic insights. Meaning, you 236 00:14:45,480 --> 00:14:49,517 can't model something purely on science. You have to have an 237 00:14:49,600 --> 00:14:53,997 aesthetic or artistic appreciation for it. And we've made huge bets, everyone 238 00:14:54,080 --> 00:14:58,437 at this sitting at this table, and many, many hundreds of people at Palantir have 239 00:14:58,520 --> 00:15:02,477 essentially artistic insights. We've always viewed ourselves, we've always 240 00:15:02,560 --> 00:15:05,797 said we're a colony of artists, and people assume that means we're just 241 00:15:05,880 --> 00:15:08,157 difficult. And that's also true. But, 242 00:15:08,240 --> 00:15:10,517 you know, it's it's also we value 243 00:15:10,600 --> 00:15:13,037 insights that are way before anyone else 244 00:15:13,120 --> 00:15:17,997 would see them. And we build major parts of our business. That's very hard for 245 00:15:18,080 --> 00:15:21,517 normal business to do because, I mean, one of the jokes running around Palantir 246 00:15:21,600 --> 00:15:25,437 is we can we can definitely meet our guide next year if we get paid for all 247 00:15:25,520 --> 00:15:29,717 the people copying us. You know, so even we got a small portion of people copy 248 00:15:29,800 --> 00:15:33,757 you know of the of the of the of the funds for the copyers, we do very well. 249 00:15:33,840 --> 00:15:37,717 Normal businesses, again, no critique here, are built around there was a 250 00:15:37,800 --> 00:15:40,317 playbook, we execute on that playbook, 251 00:15:40,400 --> 00:15:42,837 and we're in a non-playbook 252 00:15:42,920 --> 00:15:46,117 world. So, executing on a playbook that 253 00:15:46,200 --> 00:15:51,397 worked 5 10 years ago essentially build parasitic software and monetize it, that 254 00:15:51,480 --> 00:15:54,397 doesn't work now. And there's hundreds of variants of that, but that is a 255 00:15:54,480 --> 00:15:56,477 central advantage we have. We are a 256 00:15:56,560 --> 00:15:59,517 colony of believers and artists that are 257 00:15:59,600 --> 00:16:04,437 very motivated to drive value. And that sets us aside much more than I would 258 00:16:04,520 --> 00:16:08,277 have imagined 10 years ago if you'd asked the same question. And it and then 259 00:16:08,360 --> 00:16:12,517 luckily for us, this is capitalism. I mean, DSA wants to get rid of it, but 260 00:16:12,600 --> 00:16:16,677 until they do, you got to look at the results. Because if our results and and 261 00:16:16,760 --> 00:16:20,557 the other thing I'll tell you that's very special for us, we are outsiders. 262 00:16:20,640 --> 00:16:24,597 Outsiders, like you're an outsider. You come to this country, you better have 263 00:16:24,680 --> 00:16:28,117 really good results. You know, and like the same thing with 264 00:16:28,200 --> 00:16:31,517 Palantir, we know we need the best results cuz people aren't buying our 265 00:16:31,600 --> 00:16:34,957 product because we're swinging the golf club correctly or paying for the steak 266 00:16:35,040 --> 00:16:38,077 dinner. They don't even invite us to steak dinners. 267 00:16:38,160 --> 00:16:41,077 So, that's and that outsider status has 268 00:16:41,160 --> 00:16:43,277 caused huge problems 269 00:16:43,360 --> 00:16:46,597 but in the first 18 years, but a lot of 270 00:16:46,680 --> 00:16:49,997 benefits in the next 18 years. 271 00:16:50,080 --> 00:16:52,877 And other people don't like being outsiders. I'm I'm You know, in fact, 272 00:16:52,960 --> 00:16:56,880 I'm struggling with our current popularity. 273 00:16:58,200 --> 00:17:01,877 >> Thank you. Our next question is from Gil with DA Davidson. Gil, please turn on 274 00:17:01,960 --> 00:17:06,240 your camera and then you'll receive a prompt to unmute your line. 275 00:17:06,640 --> 00:17:10,957 >> Thank you, Ryan. The topic of sovereignty, you focused a lot on how 276 00:17:11,040 --> 00:17:15,197 dangerous it is to give the keys to the labs because they could choose to 277 00:17:15,280 --> 00:17:20,037 compete with you. Is there another aspect of this as well though that if 278 00:17:20,120 --> 00:17:24,277 you choose a lab and you buy the orchestration and the consulting and the 279 00:17:24,360 --> 00:17:28,317 harnesses from them, you're beholden to their models and if 280 00:17:28,400 --> 00:17:30,677 something happens, if it's not the best 281 00:17:30,760 --> 00:17:33,237 model anymore, if the model gets pulled, 282 00:17:33,320 --> 00:17:36,237 then you as a customer are stuck and you 283 00:17:36,320 --> 00:17:40,757 may have a mission critical system fail and this isn't hypothetical. This 284 00:17:40,840 --> 00:17:44,517 happened a couple of times this year where one of the frontier models got 285 00:17:44,600 --> 00:17:48,037 pulled by either the government or or the company. Well, if you work with 286 00:17:48,120 --> 00:17:52,397 Palantir, it I would assume that when that happens, you can go to your 287 00:17:52,480 --> 00:17:56,277 customer and say, "Hey, if that model doesn't work, I can plug in another 288 00:17:56,360 --> 00:17:59,277 model for you." >> Now, I mean, I'll let Ryan and Shyam 289 00:17:59,360 --> 00:18:03,277 comment here, but we're already doing that across the USG, US government. We 290 00:18:03,360 --> 00:18:07,517 have a product that allows you to about switch out models. I've Look, at the end 291 00:18:07,600 --> 00:18:11,277 of the day, if if you are locked into a product, you're going to I mean, that's 292 00:18:11,360 --> 00:18:15,197 the nature of monopoly capitalism. That that's why people want the lock-in cuz 293 00:18:15,280 --> 00:18:18,397 then they can raise the prices and reduce the quality. We're against that 294 00:18:18,480 --> 00:18:21,277 because we're on the side of the American worker, the American people and 295 00:18:21,360 --> 00:18:24,957 its great institutions and other institutions across the West. Um but 296 00:18:25,040 --> 00:18:28,997 yes, there you know, and enterpr- people are running big enterprises in this 297 00:18:29,080 --> 00:18:30,717 country are very sophisticated. They're 298 00:18:30,800 --> 00:18:32,997 aware of these risks and they don't like 299 00:18:33,080 --> 00:18:37,037 people who are kind of flaunting like 300 00:18:37,120 --> 00:18:40,197 setting this up so that they feel they're being made fun of or they're 301 00:18:40,280 --> 00:18:44,277 being they're sucker, basically. So, there's a lot Honestly, there's a lot of 302 00:18:44,360 --> 00:18:48,757 anger here. I spend interestingly a fair bit of my time trying to explain to 303 00:18:48,840 --> 00:18:51,557 people that, you know, some of the people involved in these things are not 304 00:18:51,640 --> 00:18:54,317 the caricatures they think they are, but 305 00:18:54,400 --> 00:18:58,997 because the business setup looks like heads I win, tails I win and American 306 00:18:59,080 --> 00:19:00,997 business people don't like that. 307 00:19:01,080 --> 00:19:03,637 But then, I don't know, there's a lot of things on the contractual front that 308 00:19:03,720 --> 00:19:05,357 would that would support that. 309 00:19:05,440 --> 00:19:07,437 >> Yeah, I would say like that's, you know, 310 00:19:07,520 --> 00:19:11,637 our whole focus is converting tokens to value. The example Shyam gave, 311 00:19:11,720 --> 00:19:14,157 uh that's happening across the board in the conversations with customers. That's 312 00:19:14,240 --> 00:19:18,197 why they're looking to expand to convert how they position themselves in the 313 00:19:18,280 --> 00:19:22,797 industry with us in their industry. And so, we're seeing like extreme alignment. 314 00:19:22,880 --> 00:19:25,597 It's not about being beholden to one model, it's about being bringing the 315 00:19:25,680 --> 00:19:27,917 right models to bear for the right purposes. And our contracts, our 316 00:19:28,000 --> 00:19:31,797 structures are set up to do that to support and compound their alpha in the 317 00:19:31,880 --> 00:19:34,077 organization. >> I think you know, I mentioned it 318 00:19:34,160 --> 00:19:37,517 earlier, but you're going to see this like we've been beholden to a small 319 00:19:37,600 --> 00:19:41,437 number of benchmarks that people have been designing models to and then 320 00:19:41,520 --> 00:19:44,517 releasing models saying like look how well it does on this benchmark. But the 321 00:19:44,600 --> 00:19:48,477 benchmark has actually almost nothing to do with your business. Well, so how do 322 00:19:48,560 --> 00:19:51,317 you figure out how to make the benchmark that represents your reality, what 323 00:19:51,400 --> 00:19:54,197 you're trying to succeed at, what you're trying to get better at, and then see 324 00:19:54,280 --> 00:19:58,077 what model makes sense. And the natural consequence of doing that, even even 325 00:19:58,160 --> 00:20:00,797 leaving aside all of your other arguments for sovereignty, it's like oh, 326 00:20:00,880 --> 00:20:04,917 how do I how do I climb that hill? How do I figure out what it is that I do as 327 00:20:05,000 --> 00:20:08,557 a business that I feed back into weights that I can control, which presupposes an 328 00:20:08,640 --> 00:20:11,957 open model and sovereignty. And then you're not just going to do that where 329 00:20:12,040 --> 00:20:15,437 you're waiting, hey, maybe I'll switch it out when this model gets pulled, when 330 00:20:15,520 --> 00:20:18,117 the rug gets pulled out from underneath me. You're actually going to be 331 00:20:18,200 --> 00:20:21,557 leveraging the automation to do that constantly to figure out when you have a 332 00:20:21,640 --> 00:20:24,957 next checkpoint that you can pivot maybe there's a new model. I I mentioned the 333 00:20:25,040 --> 00:20:30,277 example I I literally almost felt gaslit when within 24 hours of getting Nemotron 334 00:20:30,360 --> 00:20:34,557 up with no post training. This is vanilla Nemotron Ultra. It did better 335 00:20:34,640 --> 00:20:37,557 than Frontier. You know, if you just looked at the numbers, you would say, 336 00:20:37,640 --> 00:20:38,677 well, it's nowhere near the Frontier. 337 00:20:38,760 --> 00:20:41,957 That shouldn't even be possible. But of course, the benchmarks are wrong. I 338 00:20:42,040 --> 00:20:44,557 mean, the benchmarks are right for what the benchmark's measuring, but that's 339 00:20:44,640 --> 00:20:47,597 not my business. Those are not the tasks my customers had that they were trying 340 00:20:47,680 --> 00:20:51,637 to solve. And so then moving this to an empirical basis is I think is is how 341 00:20:51,720 --> 00:20:57,480 we're going to accelerate the realization of tokens to real economic value. 342 00:20:57,800 --> 00:21:01,237 >> Thank you. Alex, as always, we have a lot of individual investors on the line. 343 00:21:01,320 --> 00:21:03,557 Is there anything you'd like to say before we end the call? 344 00:21:03,640 --> 00:21:06,677 >> Well, you know, uh Uh, your support has 345 00:21:06,760 --> 00:21:10,437 was crucial to getting us this far and 346 00:21:10,520 --> 00:21:14,157 uh, you know, crucial to getting us to where we're going to go, which is a much 347 00:21:14,240 --> 00:21:16,757 much much much larger company. 348 00:21:16,840 --> 00:21:19,317 Um, this is one of the most exciting times 349 00:21:19,400 --> 00:21:21,477 to be involved in the Palantir mission. 350 00:21:21,560 --> 00:21:25,797 Um, we are going to help transform especially this country but allied 351 00:21:25,880 --> 00:21:29,197 countries both in commercial and government and 352 00:21:29,280 --> 00:21:34,877 uh, this sovereign frame that is we're using as our organizational principle is 353 00:21:34,960 --> 00:21:36,197 the one that is 354 00:21:36,280 --> 00:21:38,877 inclusive of everybody who wants to have 355 00:21:38,960 --> 00:21:44,117 a better world today and tomorrow and we invite everyone to engage with it in 356 00:21:44,200 --> 00:21:48,240 some form and thank you.