Palantir sprints on the stock exchange thanks to ChatGpt-style AI
With the quarterly, Palantir communicates rosy profit forecasts for all of 2023. Thanks to the demand for artificial intelligence defined as "unprecedented". The company led by Alex Karp will launch its new AI platform at ChatGpt for select customers this month
Even Palantir, the American big data analysis company specializing in military software, is betting on artificial intelligence at ChatGpt and sprinting on Wall Street.
The data analytics firm co-founded by Peter Thiel reported a surprise first-quarter profit yesterday and expects to remain profitable for the remainder of 2023, marking its first profitable year, Bloomberg reports. Palantir is betting on industries "unlike anything we've seen" in its new AI platform.
Thanks to the pace of earnings and a full-year profitability forecast, shares of Palantir are up as much as 28%, reports CNBC .
The company is known for its work in support of national defense. In particular, both the United States and its allies have relied on Palantir software for contact tracing and health data analysis during the pandemic. Additionally, Palantir's software aggregates and analyzes data for companies like Airbus and Merck & Co, Bloomberg recalls. And after the pandemic, the war in Ukraine presented another profit opportunity for the tech company. The company will also assist the Attorney General of Ukraine in investigating alleged Russian war crimes.
As Forbes recalls, CEO Alex Karp said last February: “Bad times are very good for Palantir” because its products are “built for danger”.
At the same time, Palantir continues to reduce its cloud spending and is investing in focus areas such as artificial intelligence, according to chief financial officer David Glazer. The company cut more than 70 jobs, or about 2% of its staff, last February as it seeks to cut costs.
All the details.
THE NUMBERS OF THE FIRST QUARTER
Palantir's first quarter revenues increased 18% to $525.2 million year over year and adjusted earnings came in at 5 cents a share, both above estimates. Notably, revenue from the United States and other allies reached $289 million, an increase of about 20%, topping analyst estimates of $285.6 million.
PALANTIR'S NEW AI PLATFORM
Two weeks ago Palantir launched a new generative AI platform and it runs on the same technology behind ChatGPT. The company's AI platform enables commercial and government sectors to use large language models based on their own private datasets.
The first iteration of the AI platform will be made available to select customers this month, Karp said, adding that the new offering can help the military target enemies. Clients include "one of the largest insurance companies in the world" as well as supply chain and security clients, Chief Revenue Officer Ryan Taylor told Reuters .
Karp also said the demand for Palantir's new AI platform is "unprecedented." “We've already had hundreds of conversations with potential customers about implementing the software and are currently negotiating terms and pricing for access to platform components,” he wrote.
According to Bloomberg , with Palantir's tools, a military customer could theoretically ask the AI system for information about opposing forces, ask it to analyze information about those forces, and request suggestions on ways to target the adversary. These options could range from jamming communications to launching missiles, according to a video showing the platform.
KARP'S ASSURANCE
Generative AI in recent months has become incredibly popular since OpenAI's ChatGPT, which amassed more than 1 million users within a week of its launch last November. However, this technology is giving rise to a series of doubts of an ethical, regulatory and economic nature, due to the effect of the potential risks associated with the violation of copyright and privacy, potential fraudulent uses or for disinformation purposes, up to the structural repercussions on employment that are already are looming on the horizon in many economic sectors.
And as Bloomberg always reminds us, Palantir also brings AI to the edge, which means it's able to embed autonomous decision-making on drones, planes, ships, satellites, and other endpoints.
However Karp said that because AI presents "real" risks, Palantir's software is designed with human involvement and oversight in mind. In other words, the AI will not be able to autonomously carry out targeting operations in a military context, points out CNBC .
“The machine must remain subordinate to its creator,” Palantir's number one pointed out.
THE OUTLOOK FOR THE NEXT QUARTER
After that, the data analytics firm forecast four profitable quarters in 2023. Specifically, Palantir expects second-quarter revenue between $528 million and $532 million, below estimates of $536.2 million, according to Refinitiv data. Its full-year revenue forecasts, however, were broadly in line with estimates.
THE COMMENT OF THE ANALYST
The strong first quarter was driven by a 26% rise in trading revenues, up more than expected, RBC Capital Markets analyst Rishi Jaluria told Reuters .
“Investors will be pleased with not only better-than-expected results for the quarter, but also profitability guidance and recent AI initiatives,” said DA Gil Luria, an analyst at Davidson & Co.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/palantir-sprinta-in-borsa-grazie-allai-stile-chatgpt/ on Tue, 09 May 2023 09:21:58 +0000.