Transcript
0:00 All right, hello everybody. We are here at Palantir's ninth AIP Con. I'm here with the global head of commercial Ted Mabrey. Ted, thanks for being here. Great to see you, sir. So, you just gave a presentation about 30 minutes ago and you talked about a variety of different things that you're seeing really in the past 3 to 6 months that have changed with how customers are using Palantir's technology. The kind of theme of this AIP Con is to be immersed in the magic of Palantir.
0:25 at a high level and then we can get a bit more nitty-gritty, what has changed in the past year with how customers were using Palantir and how they're using it today? Yeah, I mean magic might be an overused word, but it definitely does feel like magic. all I've done for 16 years is deploy Palantir software. It's literally all I've done. And so, I think I'm pretty good at it. I know what to do. I know how to expect it. I know what reasonable expectations are in terms of progress. And what I've seen the last 3 months as I go and get updates or go on site and see the progress that we've made with the product, it feels alien to me. like a completely different paradigm. and there are two dimensions that I think are really defining that. One is it's immediate, you know, and for anyone that's lived in enterprise software, the idea that software can be immediate of any complexity completely changes the paradigm of what you do with software. And then critically, it's not immediate to start, it's immediate to scale. and that being able to harness the real complexity at pace of operating in heavy heavily regulated industries across legacy systems with human beings that are critically in the loop. And so, the the power of the technology, it it feels very alien to me and honestly, it's a little bit unnerving versus what it was even 6 months ago.
1:46 And then the thing I said earlier that I think is the most important implication of that is when you change the underlying constraints on what the technology is and can be, how you should wield it changes as well. Right. And the biggest way that changes is that software is now something that you should dictate what you want it to do so you run your organization versus it should be something that should be adopted in order to digitize best practices of what a legacy software provider has done which is what I call almost like my pithy phrases like the private equity bi mental model bio like private equity is the worst cultural way to look to think about how to deploy technology. and what we're seeing is just really, really magical experiences of like the best, most substantive person who happens to work at the plant, knows everything about how it runs, why it breaks, why it doesn't break, but it really just wanted to do the work, wanted to make things, never wanted to be the manager, never wanted to be executive. But if you could harness their expertise and their unique understanding intuition of what it what it is, these companies can be completely different.
2:48 and so that begs for a completely different implementation paradigm and it's the really for us it's the rate at which our customers want to run. We have this idling, you know, if it's Steve Jobs bicycle for the mind, now you have like the motorcycle for the enterprise. It's idling. Let's go. Why is this happening now and wasn't happening 5 years ago? Is it a tech change that's taken place or I think it's a it's it's a combination of a significant number of things. The first one that I think is probably most important is cultural.
3:18 Mhm. and of course these things are also interlinked with technology, but Right. the biggest thing that has changed for us and this is call it the last 2 years is that people had stopped demanding things of enterprise technology. Like you've been trained to say like this is what you can get and that's the best that you can do. >> Yeah. Yeah. >> and the thing that has changed often times in this case I think going back to Silicon Valley roots of like the primary places changed is actually coming from the the government and Department of War saying technology ought to be determinative of success.
3:52 and it should be of that for not software companies, for every company in in the world. And so then you have the best, most substantive operators in the companies that really understand their industries, their own businesses, where they want to go, are finally unlocked with software, and and as importantly have an appetite to do it. They're demanding. and then of course at the same time, the technology is evolving so quickly and so rapidly that you have kind of this agreement of people want something, you can now deliver it, and then you can keep delivering it. Like one of the things that I think a lot about is we have to earn the right. You almost use like a a dating metaphor not to go full carp on you, but it's like you got to earn the right to like someone wants to go on a second date with you.
4:33 >> and when you have the best people at your customer's organization that are deciding that the highest and best use of their time is to engage with animating this software, that is a enormous unlock because those people know what it should be much more than a software industrial complex can. And then they're reinventing their companies and they're discovering new things that they ought to do and just completely reimagining them. And it's just a wildly exciting time. Yeah, I would imagine it has to be exciting cuz after doing this for 16 years, if now everything is aligning in the right moment culturally where people actually want the software to create value, they're demanding that, the technology is there paired with what you guys have been building for 20 years to deliver that value, there is a real opportunity to absolutely change the world and I think you guys are on the cutting edge of that. What are some examples you can give us of customers you've seen in the past 6 months that have taken it to the next level? Yeah, well well, you know, I'd start on kind of bookend the spectrum. One is like when I say alien like like I mean alien. Usually the engagement even for Palantir we've always prided ourselves on paces. You have to go and iterate and understand, hey, what what's the state of your business? What are the problems that you're trying to solve? What is the problem you think you have versus what is the problem that you actually have?
5:41 And kind of this iterative analog discovery process of how how thing works, what you can get access to, how how you build momentum with doing that. That is now an online process. And that is a pretty magical and a dramatic game changer in terms of the rate at which you can go from whisper of an idea of something that you want to change to a literal technical implementation that can operate with the rigors of your enterprise in order to enable it. So, a concrete example, you know, we had a team last week that was taking a tour of a battery pack manufacturer.
6:09 that tour and we always start there. It's like, we need to go see your product like where it's actually made and do it. You need to get out of rows and columns and see it in the real world. So, you have this tour of the factory. How does the factory work? What works? What breaks? What happens when the product leaves the factory? What are constraints that happen upstream of this that you have to iterate and and interact with?
6:26 >> This is all consulting, right? Cuz that's what I've heard for the past 4 years. This is all consulting. >> Yeah, well, this is so you're having this discussion because it's necessary to to do something. There is something that is consultative, but critically, I think consultative in a way that it's you know, it's like a a band. You have to make music. There are sets of things that we need to do and there are sets of things that our customers need to do.
6:43 And we can't tell them what to do and they can't tell us what to do and then it's you either work culturally or you don't. >> Right. But that factory tour is recorded on a on a phone and then fed directly into AIP. AIP then synthesizes what that is. We have a series of new technologies, Hivemind, AIFDE, Drover, Consortium, these things that think of them as basically like agents that are encoding the tradecraft of how to wield this foundation that we've been building for a very long time and translate that into real world scenarios. It's taking that recording, it's translating it into okay, these are the problems that are being expressed, these are likely technical implementations, this is what we ought to do, this is how we're going to decomp the problem, and then we're not going to stop there. We're literally going to then automatically build those applications.
7:24 >> And so then you can exit the plant tour, go meet the CEO and then have reflections on the plant tour. And instead of talking about, "Hey, we observed this. It's interesting, etc." it's like, "Hey, we observed this. Here's the software system that we think we should you should use to run it." And then the CEO can say it's like, "Wow." You know, and as they said, they're looking at the whiteboard. They're like, "Wow, that looks exactly like one of the quality issues I've had with one of my OEMs. How did you understand that decision tree? You just had access to data. We didn't even give you our playbook is like that's amazing.
7:48 That's actually right. But actually I wanted to do this. >> And it's like great, can we have 5 minutes tomorrow? and if we can, then you can get in this loop of doing something that then becomes very addictive in a very generative and and fruitful way of saying like this is the protein that I need to eat to transform my my organization. And it what's interesting about that is so you're the you're the head of global sales. I would imagine the sales process along with well, you're the head of global commercial. A lot of that is involved with selling the commercial software. I imagine the cycle gets a little easier if you can actually show them in 5 minutes. It does the the you know, the nuance there where the the correction will make sense is I'm the head of global implementation. and then I interact with our sales org, I interact with our product organization.
8:29 you know, or and of course I have responsibilities that hold across each one of those, but the implementation is the engine that works, right? Like this works substantively >> Implementation meaning showing the value. Showing the value is like manifesting all the FTEs report to me. Right? That's the team that's what I do every day. And then what we have to do is is and I think honestly we're in a period right now where the intrinsic value, the rate of creation, the sales organization needs to catch up to it because the engagement model and the intent of my talk earlier is that we need to engage differently if you want to maximize the use of this technology.
9:04 One of the things where I think we have a huge asset there and has been kind of part of the structural genius of CarGurus of how we built the company that is then emerges over time is that implementation sales dichotomy is important because we only have about 100 sellers. Yeah. yeah. And when you only have about 100 sellers, the thing that's most important is instead of building the products that can go through your sales channel of having thousands and thousands of sellers and like the playbooks and how it needs to be wrote and this and that. We need sales to adapt at the rate that our implementation is changing and the product is changing. And so it has to be tiny in order to do that, but and it can be relatively condensed, but I don't need to work with every customer. I need to work with the customers who are willing to work with me in the way that is going to create the most value from the software.
9:49 What do you want to see over the next 6 months? The last 6 months have been alien to you. How do you see this progressing and accelerating even further? The biggest thing that I'm very focused on is not using the alien leap in the technology to do the same thing we were doing last year incrementally more efficiently. Like I think that is a race to the bottom. It might look good in short-term financial metrics, but it would be irrelevant for our next 2 years, 3 years, 5 years. So, the most important thing for me is to find the customers who are most aligned with us.
10:18 and run as fast as we can with them and to turn them into the dominant player this year. and I think if we can do that, one it will stress it will continue to stress the edges of the product. two it will motivate people and make sure that we have the best people in the world because obviously you want to do this versus trying to fit into some like structured operation where you're defined by the limits of your role more than the objectives of your role.
10:45 And then you're just getting this like real symbiotic loop together. So, dramatically expanding the ambition of our best customers singular focus. Last question for you. One thing you said on the stage was I don't want customers to do things do things more efficiently. I want them to do things more. And it goes into this idea of AI doomerism that Sham has been talking about a lot, which is that AI should be increasing the number of jobs because you should have more demand because you're so much more efficient that you need to hire more versus having to cut people out. Do you kind of agree with that broader paradigm that Palantir software should be an AI optimistic world worldview? I think the closer you are to actually implementing this technology in the real world, the more optimistic you are.
11:26 and you know, and and I do think that it is true that San Francisco lives in a bubble and the rest of the world hasn't caught up to the underlying capability of the of the generalized form of the technology. I also think San Francisco lives in a bubble and has absolutely no idea how much or how the world works. And where you have the creative agency of doing these things and how you would reconfigure your products if it was an and scenario. My product would be more valuable if I have the best people at my customer involved in creating what the actualized outcome of it is. And we see this practically everywhere, right? It's like if you can drive the automation, the automation is not about reducing headcount. It's for the provider, it's about I can onboard new patients.
12:02 >> Yep. it's for the automotive company that can do value engineering across every component of their car every single day to increase their margins, win more business, Sell more cars. Right. and we see it in in the industrial base where it's you know, we have this limitation on being able to create the materials at the rate that we want in order to prepare our military readiness. But then you also have across the entirety of of of that value chain like idling capacity. Right. How is that true? And then the idling capacity where we see a manufacturer is able to add a third shift when you do it. And I think the more you get into the real world, your boots on the ground, you're on site, you're in factories, you're on you're on these things, it just behooves and it's and I can see this internally, right? It's like the people who are spending too much time Palantir offices start to like build anxiety. The people who are out in the field doing it and seeing it real get really freaking excited. And the AI improving there's this like this thing that if you're an outsider, you'd be like, "Hey, the AI improving, wouldn't that be bad for Palantir? It would eat into what Palantir is doing." And it's completely the opposite. Like I have this conspiracy theory that Karp placed Bob Muglia at OpenAI off our balance sheet in order to build this technology because I think it's the we are the number one company that it's serving to actually create economic outcomes.
13:16 >> And then where that's correlated is our business is to create outcomes for our end customers. And so the better these things get, one, of course we expected them to and they're going to get better. Two, the better they get, every unit of Elo score it improves increases my TAM by 10x. And we're seeing that play live where you can just dramatically change the relationship the technology has with mission. And if you're embedded in those missions, then those missions become orders of magnitude more effective and people win and it's really fun.
13:45 Incredible to hear. Ted Mabrey, thanks so much. >> Thanks, man. All right, hello everybody. I'm here at Palantir's ninth AIP Con with Eric Brock, the CEO of Anduril. Eric, thank you for being here. Hey, I'm thrilled to be here. you know, we've just met but I've been following your work and it's very impressive. So, thanks for having me on. Yeah, we have just met but I I do have a relatively large retail audience that is quite obsessed with your company and I honestly, I'm telling the audience right here, I know nothing about Anduril other than Anduril equals drones. So, I'm going to hit you with just the first question, what does Anduril do? What does Anduril do? So, we are an unmanned and autonomous systems provider and over a period of time we've built a portfolio.
14:27 So, what is unmanned? It's aerial platforms, it's ground robots, it's sensors at the edge. And what we're beginning to do is bring them together in a systems of systems. So, we have a counter drone portfolio. That's the not just detection but it's also mitigation. We have loitering munitions, we have strike drones, we have ISR drones. Right. We have ground robots, we have a backpack man packable robot that's always designed and it is now matured that was went in the tunnels of Gaza, right? So, it's so called boots before bots. And we've got, you know, bigger ground robots with wheels that have remote weapon systems on them. So, we've got this broad portfolio and you know, we're continuing to invest and broaden it but but again, the integration of these systems is really where we're going to be creating tremendous value. So, that's also what I've heard about as well, the integration layer of Anduril is what's really exciting which is that people say you're not just a hardware drone play.
15:20 There is a big platform that's making this ecosystem makes sense. Can you speak a little bit about why that platform is seen as so valuable? Yeah, it's critical. It's critical. So, there's really two elements of the platform. It's the integrated systems, right? And the announcement we made with Palantir is is is really integral to that road map. The work we're doing with WorldView as well with the stratospheric balloon, another layer, a critical layer, a highly differentiated layer of intelligence, surveillance, reconnaissance.
15:46 But then there's the operating platform, which I think is is really a critical differentiator in the sense that, you know, we're putting together scaled go-to-market so we can deliver these technologies. And if you look at the end markets we're in or the product markets we're in, called when I talk about drones, I'm talking about the the aerial platforms, again, the ground, stuff in the water, critical components and sensors. We have over the last 10-plus years built an incredible amount of technology platforms, VC-funded, and really a lot of talented people doing incredible work. What we haven't done is built businesses. And after doing all this work, we're starting to see the technology mature, is being deployed, and it is is incredibly valuable. We can open up these markets, but how do you deliver it, right? And that's the critical. You need you need scale, and that's what we're bringing. We're we're bringing growth capital to sort of supplement that, you know, incredible work by the venture community. Right.
16:40 When you think about what's going on in the world right now, obviously drones are a very hot topic, and you know, over the past couple years drones have become a lot more important in autonomous warfare. DJI just got banned in the United States. What are you thinking is the macro landscape around overall demand for drones as a product? The drone demand is through the roof, but we've So, the markets are massive. We're talking about tens of billions, if not hundreds of billions. And again, I I do talk when I use that word generically. It's all robotics that are used in protection, security, those sorts of use cases. But there's a dual-use market as well, right? So, and we are a dual-purpose company, which is really important. So, but at the same time, we really are just starting to see the scalability, like the reliability, the maturity. We're making We've We've been working with customers to make the drones do useful stuff. It's hard enough to make it fly and land cuz it has to be autonomous. To scale, you need autonomous systems.
17:30 but now we've done that. So, so now again, it's how you invest behind to deliver to important customers. US Army, Marines, NATO militaries, Homeland Security, you know, in the Chevrons of the world, right? They they they need to scale. Mission critical. >> can go wrong just like it's raining outside, but the drones have to be valuable and work. No, that makes a lot of sense, and I think the demand for drone technology in in in the age of AI as these AI models are integrated with the drones is also something that is heating up. What is the work exactly that you're doing with Palantir on the operational So, on the operational layer, it it to to scale the business, it is warp speed. So, that's Foundry, that's supply chain, scalability. and that's particularly important for a company like Anduril's because we are acquisitive, right? We're putting companies together, but we're not just a it's just not a portfolio of companies that are going to market. We're integrating it. And where we get the scale is from the sales and marketing leverage, right? Multiple products for a sales team that is an elite, you know, incapable group of penetrating and capture capturing markets.
18:30 same thing on the supply chain. When you have want to have, you know, the bottlenecks we see in the supply chain, you think about them all the time, you need to be scaled. if we're in a cottage industry in the drone sector with hundreds and hundreds of drone companies, the component players, they can't interface with us to get unit economics down. you know, the the contract manufacturers can't as well. So, that's the work we need to do, and Palantir is a critical enabler of that.
18:53 So, that's the operational, but of course, there's the integration of the systems as well for intelligence, and and that's a whole 'nother layer. So, it's really everything, but that's the operational part of it. >> And why choose Palantir over other software providers to operationalize? I mean, listen, you know, Palantir is, you know, is proving day in and day out. We come to AIP Con, and it's like something I've never seen before where the customers are out telling you exactly the value that they're getting getting from Palantir and it's very visible and tangible. So, you know, we have many many partners and we want to build the the ecosystem and be able to play, you know, and and really build with many.
19:26 But I think what Palantir is doing is really off the charts as in terms of enabler. And it also creates you know, market penetration opportunity as well. It's it's it's really really really critical. And you recently just acquired a company. You mentioned this kind of idea of of more M&A to kind of advance the business. What is the overall philosophy around that as well? The philosophy is to drive operating scale but then, you know, build that first we'll talk about the two levels. It is the systems of systems. We have aerial platforms we're going to continue to build and deepen those. We have the ground platforms. We're not in the water yet but, you know, that there's there's a lot of logic for that. But then we're also, you know, driving sensors at the edge, right? Because the sensors are really what keys and enables wide scale deployment. But you had of the of the systems, right? The platforms.
20:09 But then again, you have to pull that together with command and control. Another thing that we do with Palantir. And that makes it all work. And then you can go to the customer. We're not just selling, "Hey, here buy my drone and then you do the integration." That's really hard. It slows the market down. We're bringing systems and that's going to accelerate everything. So, so that's the systems but, you know, the other side of it is is really moving from venture funded development of technology to growth funded. So, we're we're on the NASDAQ. We're a listed company on the NYSE. And our investors are are are supporting us very strongly in this in this mandate. So, so it is around building that scalable operating platform. It's twofold. Where you get scale. So, this is going to be my last question, Eric. Thank you for taking the time. You have a lot of individual investors that are very very excited about the journey of the company and, you know, quite frankly, they see the company becoming much larger than what it can be today. What is your message to those investors? So, first I wanted my message is and always always will be as we work for you and the support has been really critical for the success we've had. At the same time, we haven't won. We haven't won. We have a lot to do.
21:11 We're working extremely hard. We're committed to work extremely hard, but we do it together. And we've always had the philosophy that the investors win with us. In fact, the investors have to win before we win, and that's always served us well. So, that's the message. We got a lot more work to do, but it's an exciting time. Alex Karp, CEO of Palantir. Awesome. Thank you, Ahmed. All right. Hello, everybody. Welcome back to Palantir's ninth AIP Con. I'm here with Jordan Edwards, the CEO of Mixology.
21:37 Jordan, thanks for being here. >> Great to meet you. So, let's get right into it. What is Mixology? Mixology Clothing Company is a women's fashion retailer. We have 16 stores in the New York Metro, Long Island, Westchester, New Jersey, New York City, and Florida. So, our good friend Chad told me the story how you got into Palantir, and a lot of it was just coming across these videos, seeing what he was showing online, and being like, "Wait a second.
22:01 I think I could run my whole business on this." Is that how it played out? Basically right there. So, I was at the end of 2024 I was facing a very specific problem at my business. We were going to be 4% over budget on our workforce planning and labor management. We have 450 employees, and the way we were doing it, I'm ashamed to say, was on paper with a pencil. Wow. And for 16 years it wasn't a problem until it was a problem with hyperinflation. Aha. So, I did what I always do. I went into the market and I looked for a SaaS. And I was about to sign my 61st SaaS application to run my business, everything from my ERP to Canva.
22:37 And the thing was, in '24 I was trying to reduce my SaaS burden, not add to my SaaS burden. And I got an ad on Instagram for Palantir for builders. Wow. So, I land on Palantir, and I find the use case of exactly what I was trying to do with workforce planning and optimization, and everything else, as you said. And I was like, "Wow, this is too good to be true." I reached out to Palantir, and a couple of weeks later I was in the platform.
23:03 Three months later I built out that use case. This was 2024? This was so 2024 the end April 25th is when we signed the contract and July 25th is when we deployed the first use case. So let's talk about the specific problems that a women's clothing store would have. I mean obviously every business has kind of supply chain management logistics but was there something more unique that you felt to give in the inflation that we saw in 2022 that kind of really hyper charged the necessity for Palantir?
23:30 Hyperinflation started to erode my margins on a cost perspective across every category in insurance was going nuts labor and optimization going nuts but every single thing increasing and then in 2025 we had to contend with tariffs. Yeah. And so the two biggest things I began to attack was first labor planning and optimization which we had an insane and fast incredible effect on. I think that's why they invited me here one of the reasons and then the next thing was optimizing optimizing all of our buys. In the fashion retail business if you could do two things really well you can be successful. You got to control your inventory and your buys and you got to control your people and your labor. Everything else is basically marginal in comparison. So those were the two things that I attacked and we attacked them very very well.
24:14 So let's get into how you attacked it. What specific use cases did you start to deploy on Palantir that began the Palantir journey? So it was right before AI analyst AIP analyst was launched but I was using AIFDE basically as an ad hoc question and answer to query my entire ontology and start to get the answers that I needed. So I just told you about 2024 into 2025 optimizing labor. But as we were getting to the end of 2025 and my margins are eroded we had all these non-performing brands. Now in the fashion business there's an aspect of fashion that's irrational. Yes. I like this shirt you don't like it but fashion buyers so much of it is about art. Yeah.
24:55 And so I'm not fashion part of the business I'm the business part of the business. So, I went to my buying team led by my sister and I said, "We need to cut a series of brands." And they said, "We can't cut those brands. People love those brands. If we cut those brands, we're going to go out of business." I said, "If you don't cut the brands, we're out of business." And so, my sister and I were sitting around a table and we went into AIP Analyst and we asked it the question, "What brands to cut?" And independent of me, in about 45 seconds, it returned the exact answer I was giving her.
25:22 >> Wow. >> was all the buying that she needed. We said to >> her clarity and clear eyes moment. Like took it off, we made those cuts. In January, when January of 2016 is over, we ran an analysis and we had an 18-point margin swing. We went from a $9 unit loss to a $9 unit gain. I was like, "Oh, this is the most powerful thing ever." So, at this point, I said, "Well, AI AIP Analyst is fabulous for ad hoc question and answer, but I bet I could build this into an app."
25:48 >> Yeah. >> So, I opened up AIFDE and I started leaning over the keyboard. Yeah. And I took that app and I wanted to buy the make the buyers an application to decide what a good decision or bad decision was. And in 6 hours, we had an enterprise-scale ready PO checker that gave it a thumbs up or thumbs down across eight different factors querying the entire ontology. Wow. It was a very, very, very beautiful moment. And so, we started using these tools with great effect and it went from, "How should we buy this? What's the margin going to be?
26:20 What's the size? How does this perform historically?" And we do not make buying decision now without running the decision through the entire ontology and the whole corpus of data that we have. We have traffic and weather data, we have social media data, we have Google Analytics. So, we are literally querying these questions against our entire historical ontology. And here's the cool part. I connected all those data sources myself as a non-technical CEO. In the first 11 days on platform, we had the entire most important APIs connected.
26:51 Now, let me frame that for you. ready for this? >> Yeah, I'm ready. >> Okay, 2017. I'm bringing Salesforce into my company. From 2017 to 2019, so 2 years, $350,000, three implementation partners. We did precisely one thing. We connected the API of my ERP to Salesforce. That's it. I did eight of those in 11 days myself. you know, I'm really happy you bring that up because this is what I think a lot of the Palantir employees, like Chat, have also been trying to communicate to the world, which is that not being technical is not a disadvantage. In the world of AI, it's actually an advantage because you get to focus on the thing you know the most, which is the business, and then the implementation and technical analysis, that stuff should be so natural in the world of AI to allow you to move forward.
27:34 >> If you know the questions to ask. >> Correct. So, I'm by far the smallest business here. I'm the only fan I'm the first family fashion business in the world to own Palantir. Yeah. And when I demonstrated, cuz I only have periodic check-ins with the Palantir team, I don't have any FTEs assigned to me. I have to do everything myself or hire engineers. >> Yep. Yep. And when I demonstrated to them what I had been working on after a few short months, they could not believe it. Yeah.
27:57 >> The answer was, "Holy what?" I mean, it was so crazy. >> must have been impressed. >> And and you know, I got the attention of Anita, the global head of retail, and she's been my champion to bring me here. I'm so grateful to her and the whole team, Bo Chen, who is my my sherpa inside, and Boaz Francis, and and John Kadalausky, and so many others that have, you know, helped me so much. but what they really did was they helped me solve my own problems because, unlike most of the clients here, I don't have the resources of these fabulously talented people other than just them cheerleading for me.
28:30 >> Right. Why is the ontology so important? The ontology is the missing link that everyone is trying to find in AI implementations. And what I mean by that is I So, as my capacity as a CEO of Mixology, I'm also a partner at the Charter organization, my family's investing business. We invest in commercial real estate all over the country and we've made 150 plus angel investments, some of which have become way more than angel. >> Yeah.
28:57 And what I'm seeing as I talk to all these CEOs is they're all trying to figure out how to plant their flag in AI. Yeah. And use AI for processing and they're copying and pasting into a Claude and they're downloading open claw and they're all running into the same issue which is what I was running into with AIP analyst which is ad hoc creating processes and then every single one of them runs into the same three issues.
29:19 Governance, security, and scalability. >> Yeah. I was very lucky to figure that out very, very quickly because it's very tantalizing to think that you're not going to make the expense of investing in Palantir and you're going to be able to do this in open claw on a computer. Now, I was very, very unfortunate but it maybe was the best thing that ever happened to me. I had $450,000 worth of Bitcoin stolen from me from a Coinbase wallet.
29:42 When? About four or five months ago, maybe. >> Okay. And when this happened, maybe it was like six months ago. When this happened to me it gave me so much conviction in my decision to come into Palantir. Huh. Because I said how am I going to use these open protocols, open source, open everything? There's no security in open claw. Most of these people are going to be the victims of terrible, terrible cyber crime. Now, as an entrepreneur I've been the victim of so much of this cyber crime, social engineering tactics.
30:13 I can't it's crazy. But inside of Palantir there's a governance and security. Now, it's it's not perfect, obviously could people could potentially get in but it gives me such a leg up in that regard also. So, it's not the only reason but it was one of the things that gave me incredible conviction that I made the right decision. that and also the just insane insane return on investment that I've had in such a short time. Unlike anything I've ever had in any of my businesses. Today's keynote speakers, which I guess the audience will have a chance to go watch. what was the gentleman at the end who works for Palantir?
30:43 >> Ted Mabrey. He's amazing. He told my commercial. That was my story. Yeah. He They're trying One of the reasons they invited me here is they want mixology story to be everyone's story. And they believe, and I believe it, too, that millions of businesses potentially could be using the power of Palantir. But without needing an FTE potentially to do it. >> No, and that's really exciting for someone who's been covering the company for the past couple of years. And I honestly went to like five of these AIP cons. I've not talked to someone like you I'm very unique in the business.
31:14 >> You're very unique. And the business itself, like being able to just not only optimize on use cases, but go from zero to 100 as quick as you can as someone who's non-technical. Like that's special. And there are I mean, two thirds of the country is run on small businesses. If they could actually implement something like Palantir, I mean, forget Palantir's growth, GDP growth across the country. Yeah. You know, could be incredible. I could could not agree more.
31:36 I'm not a an equity investor, and I don't pay too much attention to the stock prices, but like Dr. Karp said this morning, when I see people who just don't understand Palantir speaking negatively about it, and just because they don't understand it, I I scratch my head and say, "This is the most powerful platform on planet Earth." >> Yeah. It Almost everything I read about it is completely misunderstood. Like they do not understand what it is.
32:01 >> Yep. What do you think about that? Well, I agree. I think people in the media have very interesting perspectives that they realize they can placate to a certain segment of the population by framing Palantir in a certain way. And you know, I've been fighting it for the past four years of just like, you know, that's why my community has been very tight, and we've understood the real story. We've actually been to these conferences, understood the technology.
32:20 But then when you hear someone say, "Well, it's the most evil company in the world." It's like Operating margins going up and costs going down are not evil, you know? So. Well, it has a point of view, and the point of view if you disagree with the point of view of the company, then I can understand. But just in terms of the platform being misunderstood about what it fundamentally does. >> Yes. I think that's the part.
32:39 >> Well, the worst is it's just a database. It's like, I don't know. No. It's not just a database. You know, poetry in business is watching AIFDE build an application. Yeah. And if you've been a business operator and you have great ideas and you're even a great executor, Yeah. but your obstacle has been translating your business knowledge to a developer that knows nothing about your business, nothing about your industry, that is the delta between launching applications and not. And so, for me to know the business problem, know the outcome, and also know how to articulate it to AIFDE, I don't need a developer. All I need to do is truly know my business. Right.
33:17 Yeah. Jordan, thank you so much for your time. Great. All right. Hello, everybody. I'm here at Palantir's ninth AIP Con with one of the first institutional analysts to get on the Palantir story. Ladies and gentlemen, Wedbush senior director, Mr. Dan Ives. Dan, thank you for being here. >> you. Awesome to be here. I want to start off with this. Dan and I know each other. We've been friends for a couple years and we've done multiple interviews, but I don't think I've ever asked you this question.
33:41 Why do you come to these events? Yeah. For for me, it's really it's getting a pulse of customers, you know, Palantirians, the technology. I think part of our value, you know, over the decades, it's been going to so many events like this, where there's Palantir for for so many other companies, cuz I think sometimes you're able to piece together maybe pieces of the puzzle that you can't find a spreadsheet. >> Right. And I think you see that from talking to customers, talking to partners, and obviously talking to, you know, many people from the company. This is, I think you're a third or fourth AIP Con that you've been to. the first time they had AIP Con, this was summer of 2023, things started changing, AIP began a new trajectory for the company. What's changed over the past 2 years with AIP? I think 90% of these customers If you think about it, 90% people here didn't come here 2 years ago.
34:38 I think that to me is the most important. You know, this is not an AIP con where it's like all government you know, existing Palantir you know, customers. We're talking about commercial CIOs. Companies that are looking to deploy AI strategic deployments that you know, it speaks to my view like Palantir is becoming really the hearts and lungs for a lot of these companies in terms of their IT budgets. When it comes to AIP, the first thing that you've been kind of saying over the past couple years is that use cases are all that matter in the enterprise. Do you think those continue to expand as AIP grows? Exponentially. I mean, I I look at there's there's a lot of companies that I know that maybe they went to AIP con a year ago and now some of them could be you know, top 20, top 30 customers for Palantir in a year. I think the most important thing is that the ability to close sales cycles >> Right. have accelerated to a point that I think Palantir has even been surprised because you know, it comes down to like no other company in technology has the value proposition that they have. And me and you have talked about it and obviously you've been such an early believer in in terms of Palantir and so many other in the retail community.
36:02 It's trying to see where does this thing go over the next 2-3 years. What does it look like when all of a sudden free cash flow is 7, 8, 10 billion? >> Yeah. Yeah, and I think that's the story. Originally it was very hard for a lot of analysts to kind of understand Palantir because that margin profile wasn't there. Now we're talking about the best margins in software at 51% adjusted operating. And the commercial businesses was leading the growth. I mean, think about the margins in the commercial versus government so much more significant. And I think that the story here is I think the last maybe like few years and even go back like three, four years ago, it was like they had to prove it.
36:42 It's like get the customer here, prove that we could actually be a value in your organization. Now, that's not even a question. The question is companies come here and be like, where do we fit in the line? >> Right. When could you do our deployments? This is not about like, okay, we want a 20% discount. We want that cuz they recognize I think a lot of these customers that I've spoke with, they recognize there's only really one solution, especially when you think about the strategic you go back to this whole software ghost trade with Anthropic and where is where is the value? It's in the data. Well, so I was going to ask you, software is getting re-rated by the street. Palantir at the end of the day is a software company. How do you think they fit within this re-rating of software? It's the most I've told you it's the most disconnected trade that I've seen in tech in my career.
37:33 Just because if you think Anthropic is replacing Salesforce, Palantir, CrowdStrike, what's good in Vegas and I'll take the other side of that bet. And I think that's Look, part of it is part of this ghost trade. I think Anthropic, I mean, they have their own problems now, you know, given essentially a scarlet letter from the Pentagon, but you look at Palantir, they're really the only software company that has actually shown the monetization of AI. Now, you look at that was obviously a disappointing quarter.
38:09 Now, the question is like Oracle took a step in the right direction this week. I think software, in in my opinion, when you look back at that Anthropic event a few weeks ago when they introduced the the enterprise AI agent, that will be viewed as a bottoming event for software. Why? Because that was the equivalent of there's this bully. He's 6 6 330. He squats 1,000 lb. Then all of a sudden you comes out and he's 5 280 lb.
38:44 >> Yeah. Yeah. Look, I think that was the one where you realize like that as a software these agent, this is what's going to play. And I think you started to see like Microsoft at that moment. I think while I saw her name started right there. And it comes down to like it is the most negative I've seen institutionally cuz institutionally right now it's like you own semis don't touch software. >> Right. Right. And that right now I think is the wrong trade relative to what we're starting to see in monetization not just Palantir but Oracle.
39:17 What I believe it's it's ultimately like when names like CrowdStrike, Palantir. You look even some of the buybacks that like Salesforce is doing. >> Right. When it comes to monetization, obviously a company needs to figure out what the strategy is to get AI to be deployable in the enterprise and then create value. Why do you think Palantir has been one of the few software names that can flip on that monetization? >> Because Karp and Palantir have an elite Stephen Hawking's IQ type understanding of how you could actually build the use cases. Because it comes down to like you can say their special sauce, their ability to basically go in whether it's deployments or whether it's >> engineers. And look, I think with essentially no direct sales people.
40:05 >> Yeah. Now that technology that's been so key to the government and obviously to to so many three-letter agencies in Western governments now that's being deployed on the enterprise. And I think when it comes to use case, I don't know if there's anyone that even comes close. Right. Dan Ives, thank you so much for the coverage and thanks for being here today at AIP Con. >> great to be here. Hello everybody. Welcome back. We are here at Palantir's ninth AIP Con. I'm here with Casey Lane who is a senior vice president at Teton Ridge. Thank you for being here.
40:36 Hey, thanks for having me. So, I think a lot of people are very interested when different executives from companies that Palantir works with come to the AIP Con. So, I kind of want to give you the floor to say, what do you do at TWG and why did you come to AIP Con? So, we're here I think because we're an interesting use case. We're we're a little bit of fish out of water here, right? There's a lot of you know, businesses here that are centered around technology or or building out, you know, supply chains and things like that. And and what we're doing is is a little bit different. So, we have a partnership with TWG AI and Palantir. And we are building a video analytics and data platform to modernize Western sports, I guess is the best way to put it.
41:26 Okay. how do we modernize Western sports? I guess if we went a little bit deeper cuz I know there's some bull riding that gets involved in this. >> Yeah, so so our company does a number of things across Western sports. We're we own a television network and subscription app, the Cowboy Channel and Cowboy Plus that are really dedicated to rodeo and Western sports. We're the the the media rights holder for traditional rodeo and and produce for television a bunch of rodeos that go on our platform.
41:57 We also own a bull riding team in the TKO PBR owned PBR Teams League that goes on during the summertime. And so that this platform at its core, we're taking you know, sort of that data that has traditionally been part of the sport, which is ride scores, you know, judging, all the things that that are the sort of the product of a ride that determine outcomes in professional sports, we're pairing that with a video analytics platform that essentially from something as simple as an iPhone camera can capture the image of a bull or a bucking horse Aha. it can capture with a little bit a little bit deeper level of camera technology around barrel racing and other sports, capture the movement of the animal, the movement of the rider, and build out a platform to help improve performance Wow. and improve consumer and fan understanding, right? Rodeo is a is a great sport. Everyone loves to come and watch a rodeo, but it's it it it it's missing that next level engagement that helps you dive deeper, right? When you watch an NFL game now and a guy returns a punt, you know, he Oh, that guy just ran 26 mph, whatever it is. We don't have any of that. When you watch it when you if you came to a PBR event watch the bull ride, you'd see something you thought was spectacular and they'd tell you it was 85 points and you'd have no idea why. Yeah. We're trying to build that next layer for fans to understand, okay, this is why that ride was this many points, the way this bull bucked, the way the rider was in position controlling his body, all these sort of things. And then on the competition level, my head coach is deep in in into it with the TWGAI and Palantir engineers trying to build an analytics platform that will give him a competitive edge during our season.
43:48 Well, so interesting because in the world of sports, you're seeing AI being adopted in terms of helping fans get a deeper analytical understanding of what's happening in the actual game, but then also the teams themselves are using AI and analytics. I mean, analytics in sports has been a big industry for a while, but with AI, it's like really accelerated the kind of speed to adoption in terms of value you can get from actually figuring out, hey, should this be player be on the bench in a basketball game or should he come out during the second quarter? And getting all those stats to come together.
44:14 Before we go deeper into the pound to partnership, can you educate us a little bit more on how big the rodeo market is in general? Yeah, I mean rodeo is a is a Western sports in general is a is a massive and continuously emerging sports market. Rodeo itself in the professional ranks, if you just take the PRCA, which is the primary sanctioning body in rodeo, there's about 650 PRCA rodeos sanctioned across the country. >> Wow. Of size and scale from, you know, county fair rodeo in C&D County, Iowa to the Houston Livestock Show that's going on right now that will sell, you know, probably in excess of 700,000 tickets over the over the course of its span and have major music acts from every genre that play alongside the rodeo. So, it's a huge business.
45:06 It's not a It's not an easily organized business because all the rodeos are done by sort of local organizing committees that are throughout the country. They're sanctioned by the Well, there is an NBA, but it's not They don't organ- They They organize the competition, but they don't organize the event >> Got it. So, we cover all those events on the on Cowboy Channel and Cowboy Plus, but there's not and that's another, you know, that's the next layer of our partnership is bringing in, you know, a lot of these rodeo producers, committees, the PRCA starting to understand how to help them organize their data so that fans, you know, not just that are watching on Cowboy Plus and Cowboy Channel can understand the sport about how they can get a deeper understanding of, you know, what it is that that they're doing and what's at stake.
45:56 >> right? Because the syndication of this content is really what makes the NFL and the NBA so special because you just have so many eyeballs watching it. but you also have the announcers that are watching it that know how to speak about what they're watching. And I would imagine that would be the same in bull riding. >> Yeah, and then and then the the the sort of the sort of third rail is you know, what's fueling sports popularity right now.
46:17 Prediction markets and gambling. and so we are building models. we are building data pipes that will help that will help us get into that space. Have people placed predictions yet on bull riding or >> they cannot, but if everything goes right, we we teach on Ridge produce a big rodeo. It's essentially like the US Open of Rodeo at at Globe Life Field in Arlington, Texas on Memorial Day weekend on the Saturday Memorial Day weekend.
46:48 And it's basically the format is sort of like sort of like pros versus Joes, but kind of not really, but it's like the best pros versus everybody else. And so the top athletes in each rodeo discipline are there, the top five, and then we have five folks that have made their way up through a series of qualifiers and regionals. And we give away this year we'll give away a $2 million bonus. if a contender, if a non, you know, non-top five wins their wins their discipline. And we're working with the prediction market companies to build markets around that event. And to my knowledge, that'll be the first time that a prediction market's been built around professional Western sports. In in the rodeo or bull riding space. PBR is a whole 'nother sort of universe.
47:35 It's a little more organized in terms of the way that the business is set up. >> Right. PBR's a TKO company, so they live alongside UFC, WWE, WWE. They produce, you know, hundreds of events across their multiple series. So they have their Unleash the Beast series that's the individual competition going on now. They have the team series. They have a couple minor league series. So, they probably have a a tighter control on their data, tighter, you know, but they're you know, at this time they're not partnered with someone like you know, Palantir and and and our partners at TWG AI to build out, you know, and create those relationships with these prediction markets that we need cuz cuz we really need trial, right? Western sports is one of those things where you know, if you if you know it, you know how big it is, but if you don't know it, it's really hard to see, right?
48:26 If you live in New York City, you might go to the PBR event at Madison Square Garden once a year, but you don't really see the size of the universe. so, we need those companies to trust us a little bit and give us a little bit of trial. And in order for them to do that, we need the data pipe built in a way that they understand it. So, let's talk about that. I mean, with Palantir, you mentioned a little bit about some of the stuff in terms of the video integration.
48:48 What was the kind of purpose to picking Palantir versus some of the other software vendors that are out there? I would say heavily guided by our by our friends at TWG AI, right? Those guys are I mean, shoot, we're just, you know, I'm just a cowboy sports guy. And this You can tell with that. It's been mind-blowing today, to be honest with you, to sit through some of the the talks and and the keynotes this morning because it really is, you know, I look like a fish out of water here, myself and Colby with our cowboy hats on, but but we are a little bit of a fish out of water, but luckily we have, you know, a partnership sort of this three-way partnership between us, the Palantir guys, and and TWG AI to really, you know, they have dive dived into rodeo, tried to figure it out, become fans, and really helped inform us on, you know, we tell them about the situations and the things that we need, and then they're really able to guide us around how and and what we need to do to to take the next steps. And I imagine building those data pipelines, the not only the prediction markets use cases, not only the analytical analytical use cases, but things we haven't even thought of before could become possible to it sort of advanced the entire mission of Western sports. Yeah, I was I was telling Demetrius who's who's one of the Palantir guys that we work with quite a bit. Yesterday we were showing him one of the training tools that the guys use now which is called a drop barrel that basically just goes up and down and and the guys use it to sort of practice and reinforce muscle memory around just general body position.
50:19 And he said, "Well, why don't we why don't we build something that's more, you know, where we take all this data and we and I said, "Look, I don't have the budget for that, but I think it would be a great use case for you to build me a bull simulator that I can type in the name of a bull and put my guy on it and simulate what that bull is actually doing." Of course afford to pay for >> Obviously there are so many, you know, that's beyond just an AI challenge because there's all the, you know, all the the the engineering and and things you need to do and and there's a lot of things, you know, that are impossible to simulate with a live animal, but at the same time, you know, the the possibilities are endless.
50:56 >> Casey, thank you so much. Thank you. I appreciate Appreciate it. All right, hello everybody. Thank you. I appreciate it. Appreciate it. All right, hello everybody. We are back at Palantir's ninth annual AIP Con and I'm here today with Patrick who is the senior vice president of field operations at Centrus Energy. Patrick, thanks for being here. Nice to be here. So, nuclear is in the news for a lot of different reasons. The number one reason being that AI is going to need a lot of different energy. Kind of want to take a high level, what is the past year been like in terms of what you guys are seeing in the broader commentary around energy and nuclear?
51:27 Well, it's all been about, you know, small modular reactors. It's been about the existing light water reactor fleet, kind of the big kind of your traditional reactor. Also national security is a big deal. We have lost our ability to enrich uranium for national security. So, a lot of the subs and the aircraft carriers and the nuclear weapon stockpile today, that fuel was made decades ago when we had our these gaseous diffusion plants. Those went out of business.
51:56 We don't have a capability anymore and that's what Centrus is trying to bring back, restore that capability. What is the partnership with Palantir about? So, as we go forth in this buildout, that's billions of dollars, right? So, it's a billions of dollars a day, every day for the next decade, let's say. And when you do that, you know, you have to get more efficient. You have to, you know, that that capital has to be spent in a in a way that we can actually get to the goal that we need to get to.
52:23 So, we have to retool our entire operation. Today, it's very 20th century. It was paper-based. The data is real slow. The data is low quality. So, we want to bring, you know, we see this as going to war. We go to war with the best tools. Palantir is the best tool. So, that's why we chose Palantir. And well, that's going to lead me to my next question. Why Palantir over some of the other competitors? Obviously, operationalizing data and making sense of it is important. but there's a lot of companies that are promising they can do that. Exactly. It's it it's it's not just the the size of the mission we we have in front of us. It's the size and the scale. There's a speed element.
52:56 No one that I found is faster to faster to value than than a Palantir. Having worked with the the other players I won't mention, they can definitely do the job, but it it'll be longer and in the end you'll you'll spend more money for less capability. So, Palantir was the obvious choice. Is it real what we're seeing right now, the demand for nuclear, or is it a fad that's going to fade away like it did 10 years ago? Yeah, it's a great question. In the previous nuclear renaissance, it was very much a government push. You had flat energy demand. now you you do have AI as kind of the hype, but you also have re-industrialization, which is real. You have digitization, electrification of industries. These are other adjacent trends that do you know, kind of bolster a need for nuclear under any other any any scenario. National security is a you know, kind of a market that we haven't really looked at much, but we want to put reactors on the moon. We want to put reactors in space. We want to do a lot of new exciting things that is very different. So, this nuclear renaissance that we're experiencing now is different than the one 15 years ago. It's driven by customers. You have customers asking for nuclear for the first time. That's very new. Why do you think they're asking?
54:08 Is it cuz other energy sources are just not enough? >> Well, what happened the grid is constrained. So, when the grid's constrained let's say a data center wants to go somewhere. the utility would say, "Yes, we'll build it. It'll take maybe 10 years, maybe 5 years at $300 million." So, customers are saying, "Hey, we're going to handle our energy ourselves. We're going to go out and we can use solar, we can do some wind, but then when they realize they need 24/7 clean firm power you're really your options are a fossil fuel or nuclear. And so, they're they're coming to nuclear. I think the the the the dirty rap nuclear gets is that radiation and Fukushima, things can happen where it just becomes a mess. And oil and gas, although it's not as clean as nuclear, it is safer in terms of the logistics and operational ability to to actually get it into production. Do you think that is a fear that is even valid anymore given the growing demand for energy or is it something we're going to have to overcome?
55:05 Well, a lot of it's just perception. the fossil fuel isn't monitored. So, you have natural you like a fissile material in in coal. It gets burned, it gets put in the atmosphere. No one measures it, so it doesn't exist. Right. Nuclear is measured. We know exactly what we emit. It's really not much. So, if you did did the research, you would see that they you know, they the the risk from nuclear plant is extraordinarily low. It's one of the safest forms of energy.
55:31 Right. so, yeah, a lot of it is public perception public perception and just yeah, educating the public. Last question for you again, Patrick. Thank you for taking the time. what do you think the future of this partnership will be with Palantir? I know a lot of the data-driven decision-making, having that single source of truth in the ontology is super relevant, but as demand from governments and overall institutions, you know, large language model companies, they just need more energy. Do you think the ability to work with Palantir can take this forward over the next 10 years?
55:57 Within CentraSep itself? >> Oh, yeah. We're just starting my business. I'm I'm the president of American Centrifuge. We manufacture, install, and operate the centrifuges. We also then sell it. We have to transport it. We have to sell it around the world. So, there's a natural extension of that partnership to the kind of the logistics and and getting it around the world on time and budget. Got it. Patrick, thank you. We appreciate it. Patrick, thank you again for the time.
56:21 >> Thank you, sir.