Alex Karp: And then — and I’m sure Ryan will talk about this, the scale function of this. It’s like one of the logical question is, is if you’re doing well, why are you so happy that you have $40 million in operating income. Well, it’s because the unit economics are so good moving from boot camp from pilots it took six months to boot camps to take officially two days, I was in one that took 6 hours, are so efficient, we don’t — it’s like we’re just — we’re like — there’s a limit to how much resources we can pour into this. So we’re like doing all these things, and we’re educating people and we’re doing it at scale that is equivalent to already one month as much as we did all year last year.
Ryan Taylor: Yeah. And with our relentless execution, we’re seeing the ability and how much easier it is lowering the barrier for customers to see our product applied against their data in real workflows. And so we’re seeing the network effects of that. We’re seeing customers who have used AIP in one context, going to new companies, adopting it at new companies and converting quickly. We’re seeing customers that were with us years ago who are coming back to us because we have the product now that works for what they need. And we’re seeing that in a way where they may be tried to build themselves and failed, and they’re now able to implement it effectively and quickly in that environment and the vast kind of expansion and advancements of our products are showing that…
Alex Karp: And one of the things that — I mean, I’m very bullish on the U.S. and, quite frankly, a little bit less bullish on every place else. But one of the things that’s amazing about the U.S. is, people change jobs and people know how good our product is. In the minute they change their job, they call us. And some of the results if you disambiguate and normalize the results to take out packs, U.S. grew — is growing 52% — 52% off of a large base, which is why I think we can accelerate it to a $1 billion run rate by ’25. But it’s because the how dynamic America is and people moving around, taking the product, combined with our ability to execute in a new commercial motion that is just literally a game changer for how we go to market.
And by the way, we always kind of neglect to mention this. It’s also a game changer internally. Like culturally right now, partly because we’re on the frontline fighting what amounts to Evil, partly because a lot of people don’t agree with us and those that do realize that they need to stand up and stand with us, and partly because we were right about what you should supply to U.S. commercial, it’s just a really good value internally. It is just — it’s like we’re really — it’s really fun to crush it. And quite frankly, it’s occasionally fun to watch you’re apparently perfect fake competitors deliver things that don’t work and to watch us walk in with our crazy show and deliver things that do.
Ana Soro: Thank you. Our next question is from Samit, who asks, does Palantir view the USG hardware primes as allies or competitors?
Shyam Sankar: We view the PRIMEs as allies and government — Palantir government web services, it really enables it. So two of the primes are customers of Apollo. Two of the primes are using foundry to improve internal production and systems integration. Another prime Northrop has joined our Titan team. And I think from our perspective, America needs a prime. So like our national security depends on them. There’s a lot of talk in defense tech circles about disrupting the primes. And I think there’s incredible opportunity to transform what’s possible with software, which, in my opinion, we’re leading. But fundamentally, they’re crucial to our national security, and that’s because production does matter. You have to bend metal at the end of the day.
And using 10 years of munitions in 10 weeks in Ukraine really underscores that point. But increasingly, production is itself software-defined and optimized. In fact, that’s most of our commercial business, helping Airbus with the A350 and single-aisle ramp-up, helping BP produce more hydrocarbons, helping Panasonic build more batteries for Tesla cars, like that sort of transformation efficiency is what we want to bring to the primes as well as they’ve been metal.
Alex Karp: Maybe what Shyam has done a really magnificent job of is, it’s fair to say the primes thought we were competitive with them until recently, and not just primes, but others. But because really to get access to the kinds of data that the Pentagon has you’re going to be able to — you’re going to need either Palantir or be able to build something like Palantir. And I think in all modesty, people have realized it’s pretty damn hard to do what we’ve done. And so there was this kind of perceived misalignment. And what Shyam has been building out with FedRAMP is giving people a way to partner with us where they can extend what they’re doing without having to try, which everybody still does, but it’s commonly known will not work.
The ability to have access to the underlying data for reasons that are highly technical, it’s crazy hard to do. And so getting that full alignment is both much better for Palantir and much better for the nation. And then we’re, of course, interested in it because we’re pretty mission-focused and we want the nation to function better. And we’re also realistic. It’s not good for us to be fighting battles. We know we’re much better at software. We have no interest in going into hardware. I think increasingly, they know they should not fight us on software, although some still do, which is largely stupid.
Ana Soro: Thank you both. Our next question is from Mariana with Bank of America. Mariana, please turn on your camera and then you’ll receive a prompt to unmute your line.
Mariana Perez Mora: Morning, everyone. So I have two questions for you. Number one is on the government side, all these geopolitical events, we have seen all these countries moving really fast to actually enhanced readiness and modernization is a key asset. What is your expectation for the U.S. actually moving at this need of speed or that speed of need under a more bureaucratic — usually more bureaucratic environment? And the other one is AIP. You have discussed already how it changed or was a catalyst for customers to be able to adopt data analytics and data infrastructure. But I’m interesting to understand, beyond boot camps, what else is changing internally? How you face customers? How you build things with AIP, and how that is impacting your margins because they look like 30% operating margins now versus 25% that you were printing before?
Shyam Sankar: Maybe to start with the second one here with AIP. I think you should really think that the boot camp is more than just what’s happening in the boot camp. Because you’re exiting the boot camp with a series of use cases that are production ready or near production ready that you can go forward with. You’re exiting the boot camp with as the customer and usually IT with enough hands-on experience with the product that you can actually keep going and compounding it going forward. So there is this exit velocity that’s fundamental to it, where it’s not just the go-to-market motion, it actually now becomes the implementation motion. It becomes the way in which you engage with partners because now partners can run their boot camps.
Partners can drive use case growth for themselves around what came out of the boot camp and the exit velocity around that. So I think it’s quite profound and why you’re seeing both our emphasis of it and the impact that it’s having on both the financials and the operating reality of the business.
