And then, this really understand how much value it can contribute to them, how much can accelerate them, both on the government program side, but also on the company side, where companies are struggling with how to efficiently deliver modern software into these environments. But I think the bigger thing that I’m really excited about is Mission Manager, which is Apollo Rubix, which is our Zero Trust compute and networking infrastructure and the ontology software development kit, the OSDK as a combined offering to the government to really give the government what they’ve been asking for, which is infrastructure that allows them to build and manage multi-vendor big tent ecosystems that drive continuous competition and allow the government to actually control the interfaces and avoid lock-in.
And so, you can think of FedStart as actually the first product that we’ve launched on top of Mission Manager infrastructure. We’ve started doing other projects, including Army C2 work, but that’s going to be a very exciting trend for us.
Alex Karp: Let me just give an addendum here. Shyam launched and built FedStart. But one of the most important things it did is before we launched FedStart, the $100 billion of investment in kind of new defense tech, largely at the impression Palantir was competitive with them. And we weren’t competitive with them. And FedStart aligns all those venture capitalists and all their investments in most of their companies with Palantir because we can allow them to get on to classified networks much quicker so that they can actually show results to their investors much quicker. And that means a lot of the resistance to us is not only disappearing, but it’s going — it’s actually been converted into support for Palantir, support for what we’re doing. And those people are really helping spread the obvious Palantir gospel instead of wondering how they can compete with us, they’re wondering how we can succeed together.
Ana Soro: Thank you, both. Our next question is from Keith. Is your greatest competitor still your potential customers’ own IT department, or has that changed?
Shyam Sankar: Thanks, Keith. We certainly used to feel that way. But when you look at bootcamps, you look at how much charisma AIP has with IT and the fact that we’re winning with IT with Apollo, with the OSDK, with capabilities like Marketplace, that’s certainly not the case anymore. IT has become some of our biggest champions. And I think what that’s revealed for us is that perhaps the issue was never actually IT. It was this software industrial complex. Everything Alex was talking about earlier, these thin products that were really designed to sell and they’re more like a drug than they are like medicine, and the sort of strict adherence to architectural conformity. But what I think is exciting about GenAI is it’s blown up all of that.
It’s been a big reset button here. The whole map, the whole architecture is up for grabs, and we’re working very closely with IT to write that map, to write the architecture that is actually delivering all these operational use cases for these customers.
Alex Karp: Yeah, one of the coolest things about going to these meetings is it used to be three, four years ago, you could predict who was going to like us and who wasn’t, and it’s just not anymore. You go to these meetings and they’ll often be the IT person telling CEO, like, look, we have no choice. We got to — we need to install this quickly. And so, there’s a cultural shift in the US. I don’t think it’s outside the US is the case. But inside the US, people in IT are responsible for business value. This creates business value. And they’re often responsible for global business value. They’re not that interested in putting together a PowerPoint and showing how that could work in theory. They’ve got to show themselves, their company, their workers, the whole — that they’re going to get actual revenue either driving or quality of revenue driving results quickly.
And they are almost exclusively now our friends. Maybe they can talk to some analysts. We can convert you guys, too.
Ana Soro: Thanks. Our next question is from Mariana with Bank of America. Mariana, can you please turn on your camera, and then you’ll receive a prompt to unmute your line.
Mariana Perez: Good afternoon, everyone. So, I have two questions, one in US government and the second one today on financials. So, the first one is this. You mentioned in your prepared remarks, we’re accelerating US government growth and opportunities across the board. But this is contrasting to what we have heard from the primes this quarter. They have agreed that more things are moving towards software, but they argue that the DoD has to figure out how to buy software, and they have to figure out how to sell software. From your point of view, how large is the change that is netted in this award approach, but also how large is the advantage that Palantir has in this environment where you have been selling software for a long time now?
Shyam Sankar: Yeah. Look, we’ve been doing this for two decades as you point out, and I think that gives us a perspective of what was it like two decades ago and what is it like now. And it’s wildly different and so much has changed. Now, I don’t want to underestimate how much has to continue changing. And I think the department recognizes that and is working on that, but to not acknowledge the progress, I think, would be disingenuous here. Unlike the primes, who use to focus on hardware and now responding to software, we’ve always focused on software. And one of the things about software is it evolves incredibly quickly. If you think about the software we were deploying to do the Afghan non-combatant evacuation operations and how much that evolved moving into Ukraine, how much that evolved moving into the current crisis in CENTCOM, it is evolving faster than procurement can procure it.
And I think one of the unique strengths that we have is that we are investing and mutating and managing the software independent of the actual procurement actions. And that means that we always have software that’s so far in the future that it will meet the moment that the DoD actually has.
Alex Karp: As an addendum to that, the core thesis of this — of Palantir was always the reality of a disjointed violent world forces pareto-optimal conditions on institutions. So, I believe that everyone knows we have the best software in the world. It may not matter in a non-dangerous environment. But it did matter in Ukraine and Israel, and who did they buy? It does matter our software is running in — I never know what do I say, but in among the most critical places in the DoD, if you — if we are forced to fight a three-pronged war, you cannot do that even from a perspective of keeping ammunitions ready without accurate software. So the more dangerous, the more real it gets, the more battle-tested and real your software has to be.
I believe it’s about to get very real. Why? Because our GDP growth is significantly better than China’s. Now, I know the always wrong crowd says, We then should get peace. But I’m telling you that the rational result — or the rational consequences of that is our adversaries are like America is going to be stronger tomorrow than today. So, like, they don’t have a GDP story because they cannot — they do not build these systems as well as we do. They do not have the tech community we do and they do not have the US market like we do. Look at our results. And so, as this becomes more and more dangerous every company in the world, whether they’re small, big, whether they’re a start-up, whether they’re one of the largest primes, whether us, is going to have to actually prove their software works on the battlefield.
