Palantir’s 2024 revenue forecast just got a big AI boost
Palantir Technologies, a closely followed US software firm involved in ‘big data’, saw its shares soaring at the start of this week after it reported “strong traction” for its artificial intelligence platform (AIP).
Alex Karp, Palantir’s chief executive, said a growing portion of America’s corporate sector “is now coming to us” because they see “how significant artificial intelligence and large-language models will be in reshaping the industries within which they operate.”
The CEO’s comments came as Palantir reported better than expected financial results for its first quarter and gave new upgraded guidance for its full-year forecasts.
Palantir said it expects to bring in between $2.677 billion and $2.689 billion of revenue for 2024, allowing for $868 million to $880 million of (adjusted) income from operations this year – these predictions were lifted from prior estimates for $2.65-2.66 billion and $834-850 million respectively.
Second quarter revenue is meanwhile estimated at $649 million to $653 million.
In New York, Palantir stock was up 8% on Monday, and on Tuesday it traded around 10% lower changing hands at around $22.70.
For 2024 to date, the price is up around 50% from $16.58 at the start of the year.
Alex Karp also featured in his accompanying comments gave investors the view that AI and software will play a ‘key role’ in military applications.
In Palantir’s letter to shareholders, he said: “Warfare in this century will continue to be transformed by software.
“Many fear the application of artificial intelligence in the military context, including its potential to make possible more autonomous and indeed self-directed weapons systems.
“It has been less fashionable, however, to note that software, including the systems that currently enable target selection and mission planning, has become as vital to the elimination of an adversary as it is to protecting the innocent from harm.
“The platforms in use by our defense and intelligence partners present a very real threat to the survival of our enemies.
“But those same software systems may also make possible and indeed hasten the beginning of the end of an era of total and indiscriminate war.”
