TO TALK WITH CUSTOMERS ABOUT
SOME OF WHAT YOU TOLD US THREE WEEKS AGO.
THREE WEEKS AGO YOU SAID PELLETIER'S PLAN FOR AI WAS TO
TAKE THE WHOLE MARKET. HOW IS THAT GOING? ALEX: UNLIKE MOST PEOPLE, WE HAVE
BEEN INVOLVED IN AI FOR THE LAST 5, 6, 7 YEARS, BUILDING
SYSTEMS THAT WILL ALLOW YOU TO IDENTIFY ADD MATERIAL POSITIONS.
YOU CAN WORK WITH LARGE LANGUAGE MODELS, SECURELY
ENHANCE THEM, ROLL THEM ACROSS YOUR ENTERPRISE.
I HAVE BEEN AT THIS FOR ABOUT 20 YEARS AND I KNOW IT WILL
TAKE EVERYONE ELSE ABOUT FOR FIVE YEARS TO BUILD THIS.
OUR CUSTOMER BASE IS LARGE. USUALLY WE HAVE TO GO OUT AND
FIND PEOPLE. NOW WE HAVE CUSTOMERS IN THE
U.S. CALLING US EVERY DAY. ED: YOU SAID DEMAND IS HUGE.
CAN YOU QUANTIFY IT? ALEX: WE HAVE HAD A NUMBER OF INBOUND
CALLS IN A YEAR AND A MONTH. WE ARE AT A CONFERENCE.
IF YOU GO NEXT-DOOR, THERE ARE CUSTOMERS SHOWING POTENTIAL
CUSTOMERS HOW TO USE OUR PRODUCT. ED: IN THE DEMO SENSE? ALEX: IT IS ALL REAL DATA.
THINGS THEY HAVE DONE. THE WORLD IS HUNGRY FOR
SOMETHING IT UNDERSTANDS AS AI. WE HAVE CUSTOMERS USING OUR
PRODUCTS, SHOWING OTHER CUSTOMERS HOW TO DO IT.
IT IS LIKE YOU RELEASE A SONG AND EVERYONE IS PLAYING IT.
GREAT. WE ARE VERY HAPPY. THE U.S. MARKET IS HUNGRY FOR
INNOVATION. IT IS HUNGRY FOR THINGS THAT IS
BEGINNING TO UNDERSTAND IT NEEDS.
ABILITY TO ENHANCE THE OUTPUT OF A LARGE LANGUAGE MODEL.
WHAT IS THE OUTPUT? BETTER MARGINS, BETTER SAFETY.
YOU CAN CHANGE YOUR ENTERPRISE. ED: I WANT TO JUMP IN AND ASK A
VERY BASIC QUESTION. AIP, IS IT BUILT ON GPT4?
WHERE IS THE UNDERLYING TECH? ALEX:
WE ARE AGNOSTIC TO WHATEVER LARGE LANGUAGE MODEL YOU WANT
TO USE. THEY HAVE CERTAIN ATTRIBUTES.
THEY CAN GIVE YOUR REASONING. YOU CANNOT IMPORT THAT INTO
YOUR ENTERPRISE. YOU COULD HAVE THE BENEFITS OF
A LARGE LANGUAGE MODEL AND ENHANCE THEM WITH ALGORITHMS.
YOU GET ALL THE EFFORTS OF A LARGE ANGUISH MODEL IN YOUR
ENTERPRISE TODAY. NOT IN FIVE YEARS.
NOT SOMETHING THAT WRITES POETRY.
WE ARE NOT OFFERING PEOPLE POETRY WRITING IN THEIR
ENTERPRISE. WE ARE OFFERING THINGS THAT ARE
SO POWERFUL THAT IN REALITY WE SHOULD NOT SELL THIS TO SOME OF
OUR CLIENTS. ED: WHO ARE THOSE CLIENTS?
PROPORTIONATELY WE THINK ABOUT A MAN, HOW MUCH IS COMING FROM
THE DEFENSE USE CASE? ALEX: WHAT IS DRIVING DEMAND FOR OUR
PRODUCT IS SIMPLY WHAT PEOPLE HAVE SEEN ON THE BATTLEFIELD.
THAT IS VERY SENSITIVE AND VERY CLASSIFIED.
THE DEMAND FOR THAT IS VERY LARGE AND IT WILL GET LARGER.
AMERICA IS THE BEST AT SOFTWARE. SOFTWARE IS IN HIGH DEMAND IN
DEFENSE. UNTIL TWO YEARS AGO, EVERYONE.
THIS WAS A JOKE. DEADLY SYSTEMS HAVE CHANGE THE
COURSE OF HISTORY. IT IS NO LONGER A MADMAN SAYING
THIS. YOU SEE IT ON THE BATTLEFIELD.
U.S. COMMERCIAL INDUSTRY IS THE MOST
ADAPTIVE IN THE WORLD AND OUR CLIENTS ARE HUNGRY FOR THINGS
THAT WILL GIVE THEM AN ADVANTAGE ON MARGINS, SAFETY,
SECURITY USE, MAKING SURE THIS IS NOT SOME POETRY RE-CREATING
WHAT SOMEBODY SAID. IT CAN CREATE ACTUAL TANGIBLE
DIFFERENCE. WE ARE ROLLING IT OUT AND WE
ARE HAPPY. ED: FOR OUR GLOBAL BLOOMBERG
AUDIENCES, WE ARE JOINED BY THE CEO OF PALANTIR, ALEX KARP.
DURING THE EARNINGS CALL YOU SAID WE HAVE NO PRICING
STRATEGY. WE WILL CREATE A LOT OF VALUE.
WE WILL GET HUNDREDS OF CUSTOMERS AND WE WILL PRICE IT
AS WE GO. HAVE YOU MADE ANY PROGRESS ON
PRICING STRATEGY? ALEX: NO. ED: YOU ARE SO RELAXED ABOUT IT.
ALEX: WHEN YOU GO TO A BAR, DO YOU
HAVE A PRICING STRATEGY? NO. YOU ARE COOL.
I KNOW WE HAVE THE BEST ON THE MARKET.
I KNOW CUSTOMERS WILL PAY US FAIRLY.
THIS IS MUCH MORE VALUABLE THAN ANYONE WILL UNDERSTAND UNTIL
THEY INSTALL IT. I BELIEVE IN OPTIMIZATION.
WE WILL CREATE A LOT OF VALUE AND GET SOME PORTION OF THAT
VALUE AND CUSTOMERS ARE SMART. THEY WILL PAY YOU SOME PORTION
OF THE VALUE. IF YOU HAVE A SOFTWARE PRODUCT
YOU ALWAYS WANT TO GET PAID AFTER YOU DELIVER VALUE.
IF YOU HAVE A POWERPOINT OR SOMETHING NOT VALUABLE, YOU
WANT TO GET PAID BEFORE YOU CREATE VALUE.
WE KNOW IT IS MUCH MORE VALUABLE THAN PEOPLE UNDERSTAND.
WE WILL CONTINUE TO AUGMENT THE VALUE AND GET PAID ALONG THE
WAY. ED: DOES IT CONSIDER HOW MUCH YOU
HAVE INVESTED? ALEX: WE HAVE ALREADY INVESTED
BILLIONS OVER THE LAST 20 YEARS. WE ARE BASICALLY SO WE GET
TOGETHER AND ADDING THINGS ON TOP OF IT.
WE KNOW WE HAVE THE IP, WE ARE CERTAIN OF THE VALUE. IF I COME TO YOU AND SAY I AM
CERTAIN THIS IS VALUABLE, PAY ME $10 MILLION.
WHAT WOULD YOU SAY? ED: I DON'T HAVE $10 MILLION. ALEX:
GIVE ME YOUR BRITISH CHARM. ED: BY BRITISH CHARM IF I WAS A
CUSTOMER WOULD SAY THIS IS A REALLY HARD ENVIRONMENT.
CUSTOMERS ARE LOOKING FOR VALUE OF THE LOWEST PRICE. ALEX:
IF I BELIEVE IT IS THE BEST PRODUCT IN THE WORLD YOU SAY
GREAT. TELL ME HOW MUCH VALUE TO CREATE.
IF YOU DON'T WANT TO PAY ME, I WILL GO TO SOMEONE ELSE WHO
WILL. YOU CAN HAVE DIFFERENT MARGINS.
YOU CAN HAVE A DIFFERENT SAFETY PROFILE.
YOU CAN HAVE A DIFFERENT ABILITY TO CONTROL YOUR WHOLE
BUSINESS FROM YOUR LAPTOP BECAUSE THE PERSON WHO VALUED
IT PAID ME. ED: ALEX KARP, CEO OF PALANTIR
TECHNOLOGIES. THE BEAR CAVE GOT A NEGATIVE
REPORT. LET ME JUST READ ONE OF THE
CLAIMS. THE BEAR CAVE BELIEVES PALANTIR IS AN AI IMPOSTER
ENGAGING IN GAMES TO INFLATE ITS BOOKS AND OBFUSCATE ITS
LESS SEXY ROLE. ALEX: THE BEAR CAVE IS THE BEAR CAVE.
THEY CAN STAY IN THEIR BEAR CAVE.
WE ARE PROFITABLE COMPANY AND HAVE THE BEST PRODUCTS ON THE
MARKET. THAT IS WHERE THEY ARE PROFITABLE AND WE WILL WIN. ED:
I WANTED TO GIVE YOU THE CHANCE TO RESPOND. THAT IS ALL. YOU HAVE EXPERIENCE IN MANAGING
SENSITIVE, CLASSIFIED, OFTEN, DATA NETWORKS OR CLOSE NETWORKS.
HOW DOES THAT WORK IN THE TRAINING OF THE LLMS GOING INTO
AIP. IS IT DIFFICULT WHEN YOU HAVE
THAT KIND OF RESTRICTION? ALEX: IT IS A VERY IMPORTANT
TECHNICAL QUESTION. TO USE LLMS AT SCALE, YOU HAVE
TO HAVE SOMETHING LIKE A DATA MODEL THAT TRAINS THE DATA
MODEL AND ACCESS CONTROL. THOSE PRODUCTS TAKE DECADES TO
BUILD, WE HAVE THEM. IF YOU HAVE THOSE PRODUCTS, YOU
CAN SEGMENT IN REAL-TIME -- THEY ARE ALREADY PART OF OUR
CORE FIVE. THEY ARE PART OF PG. WE ROLL THEM OUT TO OUR CURRENT
CUSTOMERS. MANY OF OUR CUSTOMERS HAVE NOT
NEEDED TO USE THEM, NOW THEY DO. WHY?
IN ANY ENVIRONMENT, YOU WILL HAVE DATA AND INSIGHTS YOU WILL
NOT SHARE WITH A LARGE LANGUAGE MODEL.
YOU WILL HAVE SOME YOU WANT TO SHARE AND NEED A HYBRID.
ONE OF THE THINGS WE BUILT OVER THE LAST 10 YEARS RANDOMLY
BECAUSE WE THOUGHT IT WOULD BE VALUABLE SOMEDAY IS THAT. ED:
FOR OUR BLOOMBERG RADIO AND TELEVISION AUDIENCES WORLDWIDE,
WE ARE WITH DR. ALEX KARP, THE CEO OF PALANTIR.
YOU HAVE DEEPENED YOUR ACTIVITY IN UKRAINE.
USING AI IN ONE CASE TO HELP WITH RECONSTRUCTION.
JUST EXPLAINED THE WORK. ALEX: MY REAL ANSWER IS ASK THE
RUSSIANS. ED: WHAT DO YOU MEAN BY THAT?
ALEX: ASK UKRAINIANS, ASKED PEOPLE ON
THE BATTLEFIELD. THE EFFECTIVENESS OF OUR
PRODUCT. THERE IS VERY LITTLE WE CAN SAY.
YOU CAN READ WHAT THE UKRAINIANS SAY THEY USE.
TARGETING ACCORDING TO REPORTS HAS GONE UP, GIVEN THE USE OF
AI PRODUCTS, POTENTIALLY OURS, BY 20X TO 50X.
THESE HAVE CHANGED THE COURSE OF HISTORY AND WILL CONTINUE TO
CHANGE THE COURSE OF HISTORY. ED: DO WE ALREADY HAVE IN THE
MILITARY USE CASE AN ARMS RACE BETWEEN POWERS LIKE U.S.,
RUSSIA AND CHINA. ALEX: YES AND WE HAVE AN ADVANTAGE.
IF WE DO NOT GET ON HER OWN WAY -- ED:
WHEN YOU SAY WE, WHAT DO YOU MEAN? ALEX:
AMERICA HAS THE BEST SOFTWARE COMPANIES IN THE WORLD.
THEY COME FROM. A SLIVER OF AMERICA.
WE NEED TO GET TO A POINT WHERE 1% OF OUR SPENDING ON DEFENSE
GO TO PRODUCTS THAT HAVE BEEN PROVEN ON THE BATTLEFIELD, NOT
POWERPOINTS. IN THE LARGE LANGUAGE MODEL, IN
AI, WE ARE FAR AHEAD. COLLET A YEAR OR TWO.
PART OF THE DEBATE IS THESE THINGS ARE VERY DANGEROUS.
IF WE DID NOT HAVE VICIOUS ADVERSARIES, WE SHOULD SLOW IT
DOWN BUT WE DO. WE HAVE A LOT OF PEOPLE WHO DO
NOT WANT TO ROLL THIS OUT BECAUSE THEY HAVE NOTHING TO
ROLL OUT. THE DEBATE MACHINE IS PARTLY
FOR LEGITIMATE REASONS BECAUSE THIS COULD BE DANGEROUS.
PARTLY FOR SECURITY REASONS, AS YOU BROUGHT UP.
HOPEFULLY SOMEDAY THERE WILL BE OTHERS. THERE IS ALSO THE DEBATE
MACHINE BECAUSE THERE ARE ONLY THREE OR FOUR COMPANIES IN THE
WORLD WITH ANYTHING TO SELL. EVERYONE ELSE WANTS TO DEBATE
AND TALK ABOUT THIS IN FIVE YEARS.
THAT PLAYS INTO OUR ADVERSARY'S HANDS. ED:
A LONG TIME CONCERNED THAT CAME UP 24 OR 48 HOURS AGO WAS AN
EXISTENTIAL THREAT. YOU TALK ABOUT ENDING AI TO
COLLECTIVE WILL. DO YOU SHARE THE CONCERN ABOUT
AN EXTINCTION EVENT? ALEX: THERE IS A LOT GOING ON.
ARE THESE THINGS DANGEROUS? COULD THEY BECOME POTENTIALLY
DANGEROUS? YES. WHAT THESE DEBATES IGNORE IS
EITHER WE WILL WILL THEM OR OUR ADVERSARIES WILL WIELD THEM.
IT IS MUCH BETTER THAT WE WIELD THEM THAT OUR ADVERSARIES DO
NOT RESPECT THE RULE OF LAW AND HOW WE WANT TO LIVE IN FREEDOM.
THAT IS POINT 1. POINT 2, IN THE NEAR TERM WHAT
PALANTIR WILL ALLOW YOU TO DO IS MAKE THESE REALLY, REALLY
VALUABLE IN COMMERCIAL AND MILITARY CONTEXT.
IF YOU DO NOT BUY OUR PRODUCT, THE COMPETITION WILL.
IN THE MILITARY CONTEXT WE HAVE TO DO IT BECAUSE OUR
ADVERSARIES WILL BUILD THOSE PRODUCTS. ED:
I WANT TO TALK TO YOU ABOUT C3 AI AS AN EXAMPLE. ALEX:
THIS IS A MASSIVE MARKET. WE DO NOT COME UP WITH BIDDING
PROCESSES. ED: YOU DO NOT HAVE ANY COMPETITION?
ALEX: LET ME TELL YOU ABOUT THIS COMPETITION THING THAT WALL
STREET ANALYSTS LOVE. IT IS COMPLETE BS.
TRY WHAT WE ARE DOING AND WHAT EVERYONE ELSE IS DOING AND BUY
THE THING THAT CREATES THE MOST VALUE. ED:
ON AN INCIDENT MARKET THERE WAS A RESEARCH REPORT THAT SAYS
JANITOR AI IS A MARKET WILL BE $1.3 TRILLION IN 2032 INVOLVING
COMPOUND ANNUAL GROWTH OF 40% PER YEAR. DO YOU SEE THAT?
BASED ON THE MARKETS YOU OPERATE IN. ALEX:
THESE EXPERTS JUST MAKE STUFF UP. THIS IS A LARGE, BASICALLY
IMPOSSIBLE TO MEASURE MARKET. WHAT WE ALSO KNOW IS EVERYONE
IN THE U.S. WILL FIND WAYS TO BECOME MORE
EFFICIENT AND BETTER AT USING SOFTWARE AND A LOT OF THAT
SOFTWARE WILL BE AI-DRIVEN. THE MARKET, OVER TIME WILL END
UP PICKING THE BEST PRODUCTS. THAT IS WHAT WE KNOW. ED:
IN THE UNITED KINGDOM, MY HOME COUNTRY, THE FT IS REPORTING
THAT WITHIN THE NHS THERE IS CONCERN ABOUT DEEPENING THE
DATA RELATIONSHIP WITH PALANTIR. WHAT WOULD BE YOUR ANSWER TO
THOSE CONCERNS? ALEX: OUTSIDE OF AMERICA AND IN THE
U.K. THERE ARE LEGITIMATE QUESTIONS
THAT GET ASKED. WHERE WILL THE DATA GO?
WHO TOUCHES IT? DOES IT GET EXPORTED TO THE
U.S.? CAN WE VERIFY HOW IT WAS USED?
CAN WE MAKE SURE THE UNDERPRIVILEGED PEOPLE OF THE
U.K. GET THE SAME TREATMENT AS THE
PRIVILEGED PEOPLE, INCLUDING FUTURE TREATMENT, WHICH IS A
HUGE ISSUE IN THE U.K.? HOW DO YOU DEAL WITH THE
BACKLOG EFFECTIVELY? PALANTIR PROVIDES THE MOST
ROBUST, TRANSPARENT SOFTWARE IN THE WORLD WHICH IS WHY WE ARE
HAVING AN AI BONANZA. TO MAKE AI WORK, YOU HAVE TO
SHOW HOW IT WORKS. HOW DOES IT MAP OUT.
THIS IS WHAT YOU HAVE TO SHOW IN A HOSPITAL CONTEXT.
WHO HAS WORKED WITH THE PATIENT AND UNDER WHAT CONDITION?
WHAT DOCTOR? WAS THE PERSON FAIRLY TREATED?
WE HAVE PROVEN WE CAN DO THIS AS A PRODUCT SAFELY,
EFFICIENTLY AND UNDER THE HARDEST CONDITIONS IN THE U.K.
AND I REALLY HOPE WE WIN THAT FOR OUR SAKE AND THE SAKE OF
OUR U.K. EMPLOYEES AND THOSE WE GREATLY
RESPECT.
