The boss of one of America’s biggest data analytics firms has claimed that Europe is at risk of “ruin” as companies and governments “stand on the sidelines” in the race to adopt artificial intelligence technologies.
Alex Karp, chief executive of Palantir Technologies, said the United States was driving the “AI revolution that is reshaping industries and economies” as the company reported a record quarterly revenue and profit driven by a boom in American businesses adopting generative AI technologies.
Palantir increased its revenue guidance for the third time this year, sending the shares up $5.37, or 13 per cent, to $46.78 in after-hours trading in New York on Monday.
In a letter to shareholders, Karp, 57, said: “As America once again forges ahead, our allies and partners in Europe are being left behind. Their private and state institutions stand on the sidelines during this pivotal moment in economic history, while the relentless innovation of US companies disrupts and reshapes global industries. Europe must adapt to the opportunities and challenges of AI, or risk ruin.”
Palantir builds platforms for managing and securing data and creates applications for machine-assisted learning that are used by companies and the US government. Its AI platform is used to test, debug code and evaluate AI-related scenarios. The CIA was an early investor in the business, which was founded in 2003 by Peter Thiel, the Silicon Valley billionaire.
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Overall revenue in the last quarter reached a record $726 million, representing a 30 per cent increase from the same period last year. Profit also hit a record, up 100 per cent on the previous year to $144 million.
Revenue from the US government has surged as demand from departments including defence and intelligence agencies drove a 40 per cent increase in revenue from the division to $320 million.
Last year Palantir was awarded a £330 million five-year contract to manage the data of millions of NHS patients. Its technology promises to improve medical records by allowing information on patients to be shared between different parts of the health service.
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Palantir said it now expects 2024 revenue of around $2.81 billion, up from its prior expectation of $2.74 billion to $2.75 billion.
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Palantir’s shares have benefited from investor interest in AI-related stocks. The stock has risen more than 140 per cent so far this year. It was added to the S&P 500 in September and has outperformed the index’s 20 per cent year-to-date gain.
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