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Palanteer reporting third quarter
results above expectations in a big way.

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The company issued better than expected
fourth quarter guidance. Uh shares down

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in the pre-market this morning. We'll
talk about that as well. But joining us

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right now is somebody we've been talking
about frankly all morning. Alex Karp is

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with us. Uh Palunteer CEO Alex, it is so

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good to see you uh this morning. Uh we

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had your biographer on the broadcast uh

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before and and and we're speaking about
you now in third person, but now we're

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now we're doing it in first person.
Uh the earnings were a blowout I think

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across the board. We can talk about
maybe why the why the stock market's

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reacting the way it is. But you know I
was listening to the call yesterday and

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I wanted to just for those who didn't
get an opportunity to hear it. I think

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you made some fascinating points about

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why you think this company and maybe
even yourself are so misunderstood.

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>> Um well there are lots of easy ways to
misunderstand me. I misunderstand myself

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and you know it's not like the super
conventional playbook thing. Look, we're

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an anti-playbook company. Uh if you
want to do the personal version, I'm like

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this uh dyslexic formerly and I believe
currently still left of center who

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actually sticks up for progressive
values which triggers you know TDS uh

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loving people because I think the
Democrats aren't no longer progressive.

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And then the company is built in a truly
suagenerous unique way which would only

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be possible in America and actually
explodes every assump assumption of how

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an expert would build a software business.
The more you actually know

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about building software the more odd,
unique and inexplicable our rise in

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success and I would say domination on

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the enterprise software battlefield

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looks and is. Um and then I would say

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one of my main issues is Palanteer
because we were anti we called uh we

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called a lot of things that are kind
of establishment views that often are uh

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viewed as kind of being super woke into
question in every single assumption of

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Palanteer. The people who piled in uh
to Palunteer were people investing their

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own money often people who are not
in the investor class non-experts and even

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till today the experts sit on the
sideline and say hey this can't be true

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while the average American who invested

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in Palanteer and for the first time

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maybe arguably in since World War II uh

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average Americans got venture returns
investing in Palunteer. So you have this

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massive divide uh between the average

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person who evaluated themselves and the
expert class that still was working on

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assumptions that have historically not
been true that obviously if you look at

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the earnings if you actually look
at we grew the company uh I mean I'll go

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through if you want to go through
the numbers but extraordinary results and

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then the expert classes weak need and
the retail people are all in. So, but in

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fairness, >> but that's
what I want to ask you about

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in terms of the mis there because there
is a misunderstanding. Clearly, you

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know, you look at the analysts,
most analysts, you know, think that this

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stock is overpriced. You have people
like Michael Bur out there shorting it.

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Everybody who's shorted this stock thus
far has been on the losing end of it.

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And I'm trying to understand just if you
look at sort of the growth trajectory,

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the sales, how much of the sales frankly
I think actually even coming there was a

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huge part coming from even existing
customers and just what the scale of

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this thing ultimately looks like in
your mind. Okay, there are two parts. You

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know, of course, when I hear short
sellers attacking uh what I believe is

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clearly the most important software
company in America and therefore in the

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world in terms of our impact simply to

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make money and calling trying to call

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the AI revolution into question where we

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have these this anomalous numbers 114,
rule of 40, etc. It just is super

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triggering because these people they
could pick on any company in the world.

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They have to pick on the one that
actually helps people that actually has

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made money for the average person.
that that is actually supporting our war

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fighters. Why do they have to go after us?
And I'll tell you what though, it's

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crazy motivating because I'll tell you
why the short sellers are constantly

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getting screwed by Palanteer because
every time they short us, we just are

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like tripling down on getting the better

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numbers and part honestly to make them

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poorer. But okay, so um the the the the

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question of like uh the actual power of

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the business and what is it worth?
I mean, at the end of the day, one of the

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things that is actually in the book,
the biography, and that I actually think

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that you always have to ask to to the is

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the person persuasive or are they right?

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And across all sorts of movements,
political, I mean, you see this on the

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regressive part of the Democratic party.

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We're about to probably have a complete
disaster. I was born in New York. Like,

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but if you actually said, "Do these
things actually work?" Everyone's like,

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"Of course, I'm not going to vote for
that." But instead, they asked, "Does it

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work in theory?" the theoreticians,

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you have to ask how often have you been

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right and Palanteer is about pragmatic

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decisions that create unfair advantages

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for America and its allies and on that
we've been right for almost 20 years on

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all major decisions and I believe we'll
be right going forward. Now, you could

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argue I don't know like they're
constantly like but they they thought

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Panaltier was overvalued at 10. They
thought it was overvalued at 20. I'm not

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even here saying what the valuation is.

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I'm just saying find a company in the

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world that has a rule of 114 that has US

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commercial growing at 121% that

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aggregate growth in the US is 77% that

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has throwing off free cash flow in a way
that's anonymous and that is fully

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aligned with our customers and you
figure out the value but they're in the

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business of being skeptical and being
wrong and we're in the business of

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giving an unfair advantage to American

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workers, American war fighters and
our investors. Being short is is a very

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difficult place to be because you can
lose everything, right? You can drive

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these people into the ground. Michael

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Bur put a really big bet on. It's almost

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a billion dollars. It's $912 million.

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That's a big step for him to put into
that. What when you say you redouble

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your efforts, what do you do?
What do you go back in?

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>> Um, well, first of all, he's it's like
he's actually putting a short on AI. So,

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the way I read it was us
and Nvidia and it's like

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>> the biggest position is you though.
I'm just through all his shorts.

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>> Okay. So, and and then by the way
with the shorts is very complex. It's not

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even clear that I honestly I think what
is going on here is market manipulation.

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We delivered the best results everyone
anyone's ever seen. It's not even clear

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he's not doing this to get out of his
position. I mean these people they claim

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to be ethical, but you know like they're
they're actually shorting one of the

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great businesses of the world. And I'm
not against shorting as a matter of

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theory, but I'm just saying pick
something that is not doing a noble

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task. And you know, it's us against them
and that's a good position for us. I I

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mean look when you're printing a rule of

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114 again people who aren't technical I

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think roughly a an incredible score like
an Olympic grade score on rule of 14 is

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like 50 I mean that's roughly like if
you're between 50 and seven you're an

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Olympic athlete of unique influent
athlete this is like Michael Phelps like

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score like Michael Jordan like there are

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no scores like this there and and 121

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growth off of almost a 1.5 run rate in

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US commercial and a 77 77% growth in the

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US and an aggregate off of an aggregate

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base of of $4.5 billion. By the way, I

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predicted we'd get here. So, you know,

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it's like I if you want to short that,

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be my guest. You go ahead. We're just
going to go do our things. I mean, look,

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I'll tell you, there's a tale of two

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cities in our society. We need experts

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versus retail. And you see it like, you
know, I don't know why these newspapers

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are running, helping Mandani win.
I don't know why we can't have honest

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discussions about our future.
I don't know why we have to allow fentanyl

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attack, but it's almost always sympathy
for the expert that doesn't need it. The

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short seller that has some ridiculous
reason for doing something against I

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mean most of GDP growth in this country
is because of AI. The real question is

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how do we grow that and expose workers?

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What is the worker available GDP? That's
the question for our society. Instead of

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aligning on that, we've got these
completely and again if the numbers

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weren't there, great. be my guest. But
then the numbers are there. So then you

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you're not it's not even clear he's
actually shorting us. It's it's probably

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just how do I get my position out and not
look like a fool. I don't know. But

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I do think this behavior is egregious
and I'm going to be dancing around when

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it when it when it proves it's proven

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wrong. Right. Alex, we've heard a lot of

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talk from the likes of a Michael Bur,
but more broadly about whether we're in

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an AI bubble, whether the economics
make sense. Clearly in the context of

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Palunteer uh they do make sense in so

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far as you you're you're printing money

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over there. Um not everybody in the AI

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space is printing money in the same way

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and they're spending an enormous amount
um on chips, data centers and the like.

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How do you see the broader space right
now in terms of just how things are are

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are developing? The there there are
two subtle issues in AI. what is the

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addressable market and what is the
addressable market for things that work

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meaning you make more money and your
the quality of the money is higher so top

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line and bottom line grower we're
in the business of the a part of the

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addressable market where it works and it
can be quantifiable either commercially

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or on the battlefield so you that
clearly and and over time you're going

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to have trader optimality meaning that
every part of the stack is going to have

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to create more value than they charge
that's just obvious and if that doesn't

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happen it will be a bubble and you I
mean, I'm sorry. Short sellers can't

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tell a difference between products that
work and products that don't, but these

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numbers should show you that there's
a part of the market that to you quote you

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is printing cash. And it looks like that
part of the market is the park we own.

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There's a separate question, by the way,
which I think is equally relevant. What

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part of the GDP growth is available for

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workers? What we call worker available
GDP? And that's like one of the unique

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things about Palunteer is whether
it's on the battlefield like the people

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writing the scripts for these very
complicated operations or building

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batteries or doing things on the factory
floor are being enhanced by our product.

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And those two it's really those two
questions are going to define arguably

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the future of what happens in this
country. Does GDP grow because of AI

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which only can happen if if there's prao

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optimality or and and what the way we

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see it the c the customer pays less than

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the value they create which is abnormal

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uh not exactly equal prao optimality and

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that it's unknown honestly you have this
massive growth but you know currently as

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far as I can tell the two companies
he's shorting are the ones making all the

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money which is super weird like the idea

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that chips and what you want to short is

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batshit Crazy.