Palantir Technologies Inc. (NYSE: PLTR) rallied as much as 21% in premarket trading Tuesday after The company is forecasting high profitability and claims that demand for its new artificial intelligence product, which will be available this month, is “unprecedented.”
The firm reported a surprising profit in the first quarter and intends to be profitable for the rest of 2023, its first successful year. However, AI was a major emphasis for Palantir on Monday. During a video call with analysts, Chief Executive Officer Alex Karp stated that the data analytics firm is “running hard” at AI technology and that its objective “is to just take the whole market.”
Palantir works with governments and organizations that have sensitive networks, providing services such as analyzing information such as criminal databases, DMV records, or phone data to improve decision making. “Every one of those clients’ needs an AI strategy,” Karp says. “We have unique software for that.”
The business said on Monday that it expects adjusted income from operations to range between $506 million and $556 million in 2023. Analysts forecasted $496.5 million.
Revenue for the first quarter was $525 million, up 18% over the previous year, according to the business. Analysts had predicted a loss of $506 million.
Karp emphasized the importance of the company’s AI advances in a letter to shareholders. “We have already had hundreds of conversations with potential partners about deploying the software and are currently negotiating terms and pricing for access to the platform,” stated Karp.
However, the plan’s specifics are still being worked out. During a conference call with investors on Monday, he stated, “We have no pricing strategy.” We’re going to make a lot of money. “We’re going to get hundreds of customers and price it as we go.”
The CEO also stated that the threats posed by the most powerful types of generative AI are “real,” and that Palantir’s algorithms were created with privacy and human safety in mind.
“The machine must remain subordinate to its creator,” said Karp in the shareholder letter.
The company’s AI effort builds on much of its earlier work and comes somewhat late in comparison to certain industry behemoths. Over the last year, the industry has exploded in popularity, with large internet companies marketing new products alongside startups backed by billions of dollars in venture capital.
A military user might hypothetically use Palantir’s capabilities to query the AI system about opposing forces, ask it to assess information about those forces, and prod it for ideas on how to strike the opponent. According to a video displaying the device, these possibilities might include everything from disrupting communications to firing missiles. Palantir also provides edge AI computing, which means it can integrate autonomous decision making on drones, airplanes, ships, satellites, and other endpoints.
