For most of the past two years, the story around artificial intelligence has been dominated by big tech companies. “The Magnificent Seven“Members Microsoft, Amazonand alphabet It has invested billions in the likes of ChatGPT creator OpenAI and perhaps its biggest competitor, Anthropic.
And at the same time there Teslathe brainchild of Elon Musk who is looking to bring self-driving cars and humanoid robots to the masses. Of course, none of the generative AI applications developed by these giant tech companies would be possible without help NvidiaGraphics processing units (GPUs) and proprietary software.
If you’ve read any of my previous articles, you’ll know that I tend to use November 30, 2022 as the starting point for the AI revolution. To add some context, this is the day ChatGPT was released to the public. Since then, Nvidia has outperformed each of its Magnificent Seven peers by a wide margin – gaining more than 700% as of market close on December 12, 2024.
Honestly, this is Nvidia’s world and everyone else lives in it. However, smart investors realize that the performance of even the greatest giants can be matched. Outside of big tech, there is one company that has maintained its star status in the world of artificial intelligence Palantir Technologies (NASDAQ:PLTR).
Palantir has proven that it can compete with the major companies in the world of enterprise software, and some investors such as… Billionaire businessman Chamath Palihapitiya He argues that the company hasn’t even started expanding yet.
With so much potential on the horizon, could Palantir be the next Nvidia hiding in plain sight? Let’s dig in and find out.
During Palantir’s Q3 earnings call, CEO Alex Karp made an interesting statement regarding how data integration is the most important variable when developing AI-powered services.
“The experts who write about these things seem to think that the commodity, i.e. the MBA, is the valuable aspect of this and that the actual asset, i.e. how the commodity is managed, is the actual value,” Karp declared.
What Karp is trying to say here is that large language models (LLMs) are more of a commodity than a proprietary technology. While Gemini Alphabet, Claude the Amazon, deadBoth Llama and ChatGPT offer unique features, and the average user cannot tell the difference between these platforms. From Karp’s perspective, the real value proposition is how to bring data into the MBA by supporting software integrations. This is where he believes Palantir has an advantage.
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