One of the clear and current trends that has been driving the market since the beginning of last year is artificial intelligence (AI). Investors need only scan the list of the world’s most valuable companies to fully see this paradigm shift. Indeed, seven of the top ten are major players in the race to adopt generative AI, while others are climbing the ranks at a breakneck pace.
Apple And Microsoft each of them has a market capitalization of over $3 trillion (at the time of writing). Nvidia The stock has been extremely volatile, but still ranks third at $2.6 trillion. Alphabet, AmazonAnd Meta-platforms The market capitalizations of these two companies are $1.9 trillion, $1.7 trillion, and $1.2 trillion, respectively. What these market leaders have in common is the vast opportunity that AI represents.
Although it currently has a market capitalization of just $60 billion, it may seem extravagant to suggest that Palantir Technologies (NYSE: PLTR) Palantir is doing everything it takes to join the $1 trillion club. Yet while many companies are still developing an AI strategy, Palantir has developed an innovative solution that is already ringing the bells.
Decades of AI experience
Palantir went public in late 2020, but the company has been working on AI in the shadows for more than two decades. After honing its skills building AI solutions for the U.S. government and its allies, Palantir has pivoted to creating actionable intelligence for businesses.
As the godfather of AI solutions, Palantir immediately recognized the implications of generative AI, and its years of experience allowed it to move quickly to capitalize on this opportunity. The fruit of its efforts is Palantir’s Artificial Intelligence Platform (AIP), which uses generative AI to solve specific business problems. However, it’s the company’s “teach a person to fish” approach that has won rave reviews from customers. It runs boot camps to develop AI tools that businesses can actually use. In these workshops, users work side-by-side with Palantir engineers to find solutions to their most pressing business problems.
Palantir revealed this week that more than 1,025 organizations have completed bootcamps since mid-2023, with many resulting in seven-figure deals signed within days or weeks of completing a bootcamp. That generated more than $1 billion in contract value during the quarter. Palantir previously revealed that it is “seeing acceleration of larger deals and faster conversion times” as bootcamp participants see firsthand the value of this approach to AI adoption.
That strategy has accelerated Palantir’s results. In the second quarter, the company’s revenue of $678 million was up 27% from a year earlier and 7% from the previous quarter. The highlight was its U.S. commercial revenue, which jumped 55% to $159 million, and accounted for 23% of total revenue, driven by a strong performance from AIP.
The Path to $1 Trillion
Along Palantir…
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