Palantir CEO Warns of Europe's AI Lag as Company Reports Strong Q3 Growth

Palantir CEO Alex Karp Warns Europe Risks Doom Without AI - Palantir Technologies (NYSE:PLTR)

Alex Karp, CEO of Palantir Technologies Inc. PLTR has cautioned that Europe could face ruin if it does not adopt artificial intelligence (AI) innovation. What Happened: "As America once again forges ahead, our allies and partners in Europe are being left behind," Karp stated in a letter to shareholders on Monday. His warning came as Palantir's business growth accelerates, surpassing expectations due to the robust demand for advanced AI technologies from U.S. government and commercial customers. The company's revenue in the last quarter reached a record $726 million, a 30% increase from the same period last year. Palantir's year-over-year revenue growth rate has increased over the past six quarters, rising from 13% in the second quarter of 2023 to 30% in the third quarter of 2024. See Also: OpenAI Rolls Out ChatGPT Search, Google Shares Slide In his letter, Karp attributed this growth to early and decades-long investment in technical infrastructure, which is now making large language models valuable to large enterprises. Palantir has also joined the S&P 500, a goal many thought was fanciful. The company's entry into the index was made possible by the strength of its business and expanding demand for its software, he stated. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: Karp's warning to Europe comes in the wake of Palantir's record-breaking Q3 2024 results, which were driven by an "unrelenting AI demand that won't slow down." The U.S. market remains the core of Palantir's business, where institutions have responded most rapidly to the promise of AI. The release of Palantir's newest platform, AIP, has transformed the business, with U.S. revenue reaching $499 million in the third quarter, a 44% increase compared to the same period a year earlier. Wedbush analyst Dan Ives referred to Palantir as the "Messi of AI" following the company's robust earnings. The company's customer count grew 39%, and it raised its full-year outlook across all metrics. Palantir's AI gamble has also paid off, with one customer increasing its annual recurring revenue twelvefold in less than eight months after implementing the company's AI platform. Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Apple Begins Shifting iPhone 17 Production In India, Cook's China Optimism, And More: This Week In Appleverse Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Shutterstock Market News and Data brought to you by Benzinga APIs

Palantir 'Eviscerates' Q3 Targets as CEO Warns Europe Risks 'Ruin' Without AI Adoption

Big Tech has raised concerns that the EU AI Act could stifle regional AI development. Alexander Karp, CEO of Palantir Technologies, delivered a stark warning to Europe after the company's major success in the U.S. Following its yearly results on Monday, Karp claimed that a "U.S.-driven AI revolution had taken hold" and that the EU risked falling behind if it failed to adapt. The company reported closing 104 deals over $1 million with an influx of 35% new customers year-over-year. However, most of its year's success came from its U.S. operations. Palantir's U.S. revenue grew 44% year over year to $499 million, and its commercial revenue increased 54% year over year to $179 million. "We absolutely eviscerated this quarter, driven by unrelenting AI demand that won't slow down. This is a U.S. driven AI revolution that has taken full hold," said Karp in a statement. Palantir's AI Warning Following the financial reports, Karp told shareholders that the company's partners in Europe were "being left behind" while "America once again forges ahead." "Europe must adapt to the opportunities and challenges of AI, or risk ruin," he wrote in a letter. In the EU, Palantir's involvement is widespread but more restricted than in the U.S. due to stricter data privacy regulations. Like other AI companies operating in the region, Palantir has to take additional steps to ensure that personal data is anonymized or minimized to comply with GDPR, which can limit some of its capabilities. Karp claimed that private and state institutions across the EU are standing "on the sidelines" while "U.S. companies disrupt and reshape global industries." Palantir's data security and AI learning applications are used widely throughout the U.S. and generally operate with fewer restrictions than they face in the EU. The company's software has been adopted by agencies like the Department of Defense and the Department of Homeland Security to track threats and manage logistics. An absence of an overarching data privacy framework in the U.S., like GDPR, means that agencies working with Palantir have more flexibility in how they use its tools. The company reported that Palantir's U.S. government revenue grew 40% year-over-year to $320 million. Big Tech Sees EU Falling Behind Palantir is not the only Big Tech giant to warn of the EU trailing behind the States in AI. The region's landmark EU AI Act has raised concerns among industry leaders and technology advocates who fear it could stifle AI innovation and development. In July, Rob Sherman, Meta's vice-president of policy, claimed that the region risked falling behind on innovation in the AI sector in favor of strict regulation. "If jurisdictions can't regulate in a way that enables us to have clarity on what's expected, then it's going to be harder for us to offer the most advanced technologies in those places," Sherman told The Financial Times. In May, an audit report published by the European Court of Auditors found that the EU was lagging behind the U.S. and China in AI investments. "Sizeable and focused AI investment is a game-changer in setting the speed of EU economic growth in the years to come," said Mihails Kozlovs, an ECA Member who led the audit. "In the AI race, there is a risk that the winner takes it all," he added. "If the EU wishes to succeed in its ambition, the European Commission and the member states must join forces more effectively, pick up the pace, and unlock the EU's potential to succeed in this ongoing major technological revolution."