Alex Karp: Welcome. I don’t think the camera is working. Welcome to our earnings. Obviously, current events and the performance of our business are absolute validation of our strategy of building the world’s most aligned and powerful enterprise products years, sometimes decades before they’re needed before you could imagine their power. AIP and U.S. commercial, not only is disrupting the market, it’s setting a standard that I don’t believe any other software company will be able to reach partly because they misunderstood the value of LLMs and their relative importance and lack of importance, partly because they don’t have decades of experience on the frontline as we do in the military with managing the core ways in which you make these things precise, the way in which you provide governance.
Also because the playbook backed by venture capitalists and supported by analysts has always been make the thinnest technology possible that is misaligned with your enterprise and hire the most and best salespeople so the enterprise gets moderate value while having its high revenue exported in a parasitic manner to the cheers of insiders and the pain of retail investors and we obviously rejected that. And then on the mission side, we have been saying and building products for a world that is violent, disjointed, irrational, a world in which you have to show strength, a world in which, if you do not show strength, people who are biased, xenophobic, dare I say any somatic will rear their head. A world in which you really have to pick sides. Palantir is the first major company to in my view to have said from the beginning, I think that is obviously true.
There is no such thing anymore of being on all sides. Palantir only supplies its products to Western allies. We’ve never supplied our products to enemies. We proudly support the U.S. government. I am proud that we are supporting Israel in every way we can. And we also support plain English speaking. So when people are massacre to the equivalent of almost 50,000 people in Israel, we view it as a terror act. We call it terrorism. We supply our product to people who’re fighting terrorism, and we have no problem with describing as it is or sticking up for our allies and we don’t provide false context. All of a sudden, you need a lot of context for describing what it means to kill Jews or persecute jews across the world. I believe, in context and we — in places where you need to actually provide it.
But at Palantir, we have seen that our view of the world which is that there really are people that are violent and not in conformant with morality need to be fought. And we are supplying these products that we’ve built over the last 20 years to our allies, and we are proud of the results. And I would say — also, even commercially, you are going to see that our alignment with our client, our alignment with our society pays major dividends. And for those of you who are along for the ride, we really celebrate you. And we are going to bring our warrior culture to our products, to our market fit and the results of which we are going to bring to our allies.
A – Ana Soro: With that, we’ll begin with a few questions from our shareholders before we open up the call. Our first question is from Christopher. The current situation in Israel has opened the eyes of other allied countries around the globe, specifically, are there current or future plans supporting our allied partners in Asia with Palantir products?
Shyam Sankar: Absolutely. The short answer is yes. I think not only can we look at Israel, but we can look even before that at Ukraine and the lessons that we’ve learned there. And I would distill that down simply to that you must preposition data, software and hardware well ahead of the fight there and create a partner mesh network of command and control nodes to really provide a difference here. So that’s one major thing. And so we’re spending a lot of our time on our energy thinking about how do we get as much mass west of the international dateline as possible to be prepared to meet those moments. And make no mistake, there’s a lot to be done there. The other lesson specific from Israel is how much faster you can move when you create a big tent tech ecosystem that allows you to bring a lot of other defense tech start-ups along with you.
The capabilities that we were able to give the Israeli government by bringing in other Israeli startups as well as international start-ups was incredible. And that’s a key lesson that we’re taking forward with us as well. And it’s embodied and enabled by Palantir government web services.
Ana Soro: Thanks, Shyam. Our next question is from Sony. Congrats on well executed AI bots delivering tangible value very quickly. Could you kindly attempt to synthesize the top three observations from those boot camps for enterprises to launch AI-enabled decision management systems to power forward their critical objectives?
Shyam Sankar: Sure. I’ll take a first stab at this. I would say, one, it’s about the magic moments. So the first bit of this that I think people get out of is, what does this really mean to understand that you can’t really use these LLM without tools? So how do you bring that tool bench forward? Two, it’s a realization that the semantics of your business ought to be the prompt. And we are uniquely positioned there because the best way to do that is to serialize those semantics into your oncology to use the object model that we have to do that. And so getting…
Alex Karp: We’ve already built and deployed. One of the most interesting things about the commercial market is there are all these tools we built that basically not only allow you to manage LLMs, but they are — they basically pen test your enterprise. So always de facto what in the past where you were selling was misaligned with your enterprise. AI forces an alignment with your enterprise. And so you begin to ask really business relevant questions. And then because of essentially our ability to take the knowledge of your business and put it into the LLM and then extract from the LLM something relevant and then manage it, you get both the power of the LLM and you get the shock movement of the enterprise actually saying, wait a minute, you’re providing me something that actually is good for my enterprise.
Quite frankly, it’s almost like taking an alcoholic off alcohol and saying here’s your health drink. And it’s like — and the reason why it just is very, very hard to compete against that is because the other players in this space are actually built to take you away from what is good for your enterprise. How do you make better margins? How do you make your products more safer? How do you take the task at knowledge of a Japanese manufacturing company and build in America with all the advantages of America and the tasset knowledge of Japanese manufacturing. That’s what we’re actually doing with these things. And then there’s all these things we’ve built that would take decades, years and years and years to build, even if you understood them, that we’d already built.
Shyam Sankar: And to add on to that, the Japanese example shows it. I think the third major magic moment that’s impactful there is this incorporation of real-time expert feedback and thinking about feedback as data type unto itself. Not having to retrain or upgrade the parametric knowledge of the model, but actually being able to use feedback dynamically live to create an adaptive model.
