I joined Palantir in early 2007, again when it was a penny inventory (I paid $0.011/share for my preliminary inventory choices). As one of many first 50 staff, I wrote code for the core product, then transitioned right into a Ahead Deployed Engineer position, and in the end led Palantir’s Philanthropy Engineering Workforce.

I got here to WSB for the fucking hilarious Palantir memes, however I stayed for the training and DDs. I’m on the tendies practice with GME and BB, so I figured I’d give again to the sub with a DD on PLTR upfront of Demo Day.

Essential caveat for the mods and alphabet regulators studying this: I left Palantir in 2015 to co-found Ada Diamonds. I now not have any insider information about Palantir. All I’m sharing on this DD is publicly obtainable info with hyperlinks to my sources, in addition to my private technique for the Palantir shares I personal free and clear. Neither Foundry nor Apollo had been launched after I was employed at Palantir, so I’m excited to see the demos of each, in addition to how far Gotham has come within the final 6 years.

A lot of phrases beneath, so right here’s the TL;DR for these of you that may’t learn good: By 2030, I imagine that PLTR might have a $250 billion market cap. I’ve but to promote all of my 20% that’s unlocked and am largely diamond hands-ing my soon-to-be unlocked 80% till PLTR is previous Mars and approaching the asteroid belt.

Why am I so bullish? I view Palantir because the kid-brother of Salesforce (extra on this thesis beneath), and I feel PLTR is simply fueling up. If Palantir continues to execute nicely within the decade forward, I imagine they may seize sufficient market share to develop like Salesforce has within the final Eight years:

r/wallstreetbets - PLTR vs Child Rapists, Starvation, Hurricanes, Ukranian Mafia, and $CRM (DD from an Early Palantir Engineer)

TL;DR of the TL;DR – (a number of rocket emojis and a few Mars emojis)

Positions or ban:

  • Greater than sufficient PLTR shares to cowl Cathie’s newest buy

  • r/smallstreetbets on GME and BB (shares)

  • A boomer portfolio of low danger bonds

It’s additionally value flagging that many different early staff are in the identical boat (rocketship) as me. Not like alumni of among the fast to IPO corporations, we’ve been responsibly diversifying for over a decade within the non-public markets. Along with non-public market gross sales, Palantir did a number of inner liquidity occasions the place staff might promote 10% of their holdings to a big Palantir investor as a part of oversubscribed fundraising rounds.

Thus, it’s not a query of what I’m doing with my remaining 80%, however as a substitute a query of what I’m doing with my remaining ~35%. I’ve used pre-IPO PLTR tendies to purchase a pleasant home, 1,635hp of automobiles, good holidays with mates, and so forth. So, I’m diamond hands-ing my remaining PLTR inventory with a decade lengthy diversification plan, as I imagine PLTR will far outperform the market, identical to CRM, TSLA, and the FAANGs have achieved within the final decade.

Additionally, many of the bears I do know from Palantir (together with people who give up, acquired fired, pushed out, or flamed out) way back bought most/all of their shares. The alumni I be in contact with are collectively long-term bullish as nicely.

I’m going to interrupt this DD down into a number of sections:

  1. What’s Palantir

  2. Examples of Palantir in Motion

  3. Why CRM is the closest comp to PLTR

  4. The Below Mentioned ‘Secret Sauce’ of Palantir

  5. What I’m searching for throughout Demo Day

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What’s Palantir?

Palantir is considered one of two issues:

  1. The most effective product in the marketplace to assist organizations make higher selections

  2. The most effective product in the marketplace to assist organizations discover, repair, and end/prosecute malicious actors & darkish networks.

You possibly can add as many buzz phrases as you need on top- SaaS, AI, huge knowledge, working system for knowledge, UBL, deviant thinker, cloud, Skynet, hyperlink evaluation, off-road rollerblades, GIS, ML, terrorist searching, multi-level safety, and so forth.- however on the finish of the day, giant organizations pay Eight to 10 figures for Palantir as a result of Palantir is the perfect product obtainable to assist them: A) make higher selections and/or B) discover unhealthy guys.

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Examples of Palantir in action- #1 World Meals Program (WFP)

The WFP delivers 15 billion meals per yr in 80 international locations all over the world. WFP makes use of Palantir’s Foundry to carry collectively knowledge sources from throughout the group, enabling workers to entry and analyze programmatic and operational knowledge in a safe, unified surroundings to make higher selections.

The sheer scale of WFP’s operations, helping some 90 million individuals in about 80 international locations, implies that even small efficiencies in operational and provide chain administration can result in dramatic financial savings. WFP generates huge quantities of information via the buying of three million metric tons of meals yearly and the supply of 15 billion rations throughout dozens of growth tasks worldwide.

Making this knowledge accessible throughout the group helps WFP turn out to be much more environment friendly in a number of programme areas, together with cash-based transfers, provide chain optimization, and dietary necessities.

The WFP actually received the 2020 Nobel Prize for his or her unimaginable work to assist these in want, powered by Foundry.

Sources:

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#2 – Nationwide Heart for Lacking and Exploited Youngsters (NCMEC)

NCMEC is a non-profit that leads the battle in opposition to the sexual exploitation of minors, in addition to a number of different garish obligations, such because the fixing of chilly instances of murdered kids.

NCMEC is congressionally mandated to securely maintain proof of crimes in opposition to kids (aka baby porn), and works carefully with regulation enforcement our bodies all over the world (Interpol, FBI, and so forth) to search out, arrest, and prosecute the producers and distributors of heinous materials.

NCMEC has been utilizing Palantir since 2010 to ingest proof, discover clues within the proof, and join the dots to search out the perpetrators. In 2019, NCMEC acquired 16.9 million pictures/movies of exploited kids, and COVID has brought on an exponential enhance in on-line exploitation of minors.

Of all of the work I did in my 8.5 years at Palantir, this was my most vital work. I can’t get into particulars of sources and strategies (for apparent causes) however I can say with absolute certainty that many actually evil perpetrators of crimes in opposition to kids are behind bars due to the facility of Palantir’s merchandise within the arms of NCMEC analysts. With out the facility of Palantir’s merchandise, many of those pedophiles would nonetheless be abusing kids at present.

There’s an vital half to the DD to grasp right here – Palantir is entrusted with essentially the most delicate knowledge on the planet by among the most vital and excessive functioning organizations on the planet. It takes a long time to develop the expertise and belief required to offer audit logging and entry management enough to deal with one of these knowledge, and that may be a large moat of Palantir.

Sources:

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#3 – Hurricane Sandy

When Superstorm Sandy ravaged New York, all communications strategies (telephone, web, cell towers, and so forth) went down in giant areas. In consequence, info was scarce, and the response was disorganized, chaotic, and ineffective.

In lower than every week, my crew (the Philanthropy Engineering Workforce) constructed and deployed a model new satellite-based system to handle response efforts by hacking and deploying easy Garmin satellite tv for pc communicators which might be utilized by hikers and sailors.

In partnership with Workforce Rubicon, a kick ass non-profit group of navy veterans that reply to pure disasters, we used these units to help among the hardest hit communities.

Right here’s Invoice Clinton and me speaking concerning the undertaking:

Workforce Rubicon is a data-driven group, using Palantir extensively to gather, catalog, and analyze info throughout operations and inform the remainder of Workforce Rubicon’s help features. Palantir Operators practice members on Construction and Harm Assessments utilizing the Palantir Cell utility in addition to present essential situational consciousness info for Command and Normal Staffs and authorities Emergency Managers throughout accepted Federal Emergency Administration Company (FEMA) Public Help Applications.

https://teamrubiconusa.org/weblog/remote-support-a-crucial-part-of-tr-operations/

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#4 -Disrupting Ukranian Mafia from Laundering Physique Elements

One of many areas I supported in my time at Palantir was data-driven investigative journalism. Right here’s a demo of Gotham being utilized by the Worldwide Consortium of Investigative Journalists (ICIJ) to combine and analyze dozens of information sources to reveal a legal enterprise that was stealing lifeless our bodies, laundering the our bodies with out the required testing for illnesses, and promoting human tissue for a revenue.

Observe that this demo of Gotham is Eight years previous, so that you is perhaps to match this to Demo Day to see how far Gotham has come:

Right here’s the outcomes of the investigation: Safer knee surgical procedures, pores and skin grafts, and so forth.

How our investigation produced results

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#5 – United Airways & Airbus

This work began after I left Palantir, however I need to point out it because it touches on the community results of Palantir, and it highlights the core utility of Palantir’s merchandise: enhancing high-stakes resolution making.

Palantir & Airbus’ Skywise breaks down conventional knowledge silos by bringing collectively an airline’s operational, upkeep, and plane knowledge with knowledge offered by Airbus. Now, airways can use massive-scale sensor knowledge, upkeep techniques, plane schedules, passenger bookings, and extra in a single surroundings. On high of this knowledge asset, Skywise presents a various analytical suite for operators to make sense of that knowledge in each code-free and code-based environments.

https://www.palantir.com/options/skywise/

“Deployed on United’s occasion of Palantir Foundry, these fashions purpose to attenuate discounted money flows spent on upkeep actions and maximize operational flexibility within the face of air journey demand uncertainty. The plane storage optimization recommends the perfect storage states (parked vs. energetic vs. extended) and areas (inner & exterior) for almost 800 mainline plane. The return-to-service mannequin recommends which particular plane to return at which period sooner or later and methods to make the most of our obtainable upkeep capability (inner & exterior) to make sure they’re airworthy after we want them. Since we don’t know when air journey demand will recuperate, the fashions have to account for sluggish recoveries, quick recoveries, and the whole lot in between, then produce a single, discrete resolution that considers all possible eventualities. In apply, this implies the fashions assist create plans to execute particular upkeep actions over the following a number of years; it additionally means when our Community Planning crew unexpectedly asks for N planes by a sure date, the fashions assist determine precisely which planes we must always present.”

https://www.linkedin.com/pulse/how-data-science-optimizing-united-airlines-pandemic-tom-romanowski/

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Why CRM is the closest akin to PLTR

Instinctually, individuals examine Palantir to the normal consultancies and system integrators: Booz, Boeing, Raytheon, Accenture, and so forth.

Sure, Palantir is at present competing with these forms of organizations for varied contracts, however Palantir is essentially totally different than these entities, as Palantir is a *product* firm leveraging repurposable platforms, versus a providers firm looking for to deploy as many contractors as doable, and invoice as many hours as doable to reinvent the wheel again and again.

From a expertise standpoint, Salesforce (CRM) is the closest comp to Palantir.

I say this as a pc scientist who has written core options for Palantir Gotham, written integrations between Salesforce and Palantir, and written tens of 1000’s of strains of Apex and Lightning code for Salesforce.

  • Each are cloud primarily based SaaS knowledge entry and evaluation platforms.

  • Each can ingest or entry current knowledge/techniques to offer analytics on that third get together knowledge.

  • Each have dynamic ontologies able to modeling just about any knowledge set and any use case.

  • Each have granular entry management to info on the property stage.

  • Each have default instruments and visualizations, in addition to no-code builders.

  • Each have sturdy APIs and programing languages for bespoke instruments and capabilities.

  • Each have (deserved) reputations and niches; nonetheless, each are common goal instruments to assist organizations make higher selections.

Salesforce began with CRM knowledge entry (straightforward) and has matured to supply increased stage analytical capabilities and AI. Palantir was all the time targeted on superior analytical capabilities, and it will be trivial to construct a CRM functionality on high of Palantir’s merchandise.

I run my whole enterprise on Salesforce. Lead gen -> diamond choice -> bespoke CAD creation for customized jewellery -> hand manufacturing -> supply -> service in addition to ERP features of stock administration, transport/logistics, and so forth. I might simply replatform my enterprise from Salesforce to Palantir in a month or two, if Palantir selected to promote its merchandise to small and medium companies (Which they shouldn’t, however I need to spotlight that the 2 core applied sciences are isomorphic).

It’s my perception that by 2030, Palantir and Salesforce will divide the enterprise analytics market like Android & iOS, Coke and Pepsi, or Fb and Twitter. CRM will lead in market share of small and medium sized companies, whereas PLTR will lead in market share for governmental organizations and bigger scale companies.

Don’t imagine me? It’s little mentioned, however Palantir does supply a competing Gross sales/CRM product:

https://www.palantir.com/options/sales-and-revenue/

Nonetheless don’t imagine me that CRM and PLTR are converging applied sciences? Salesforce purchased an organization based by two Palantir staff, RelateIQ, for $390 million {dollars} in 2014. Salesforce’s headline on the acquisition?

Goodbye Relationship Administration. Howdy Relationship Intelligence.

Goodbye CRM. Howdy knowledge analytics.

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The ‘Secret Sauce’ of Palantir: Granular Entry Management & Vetted Data Sharing

IMHO, the one factor that has not acquired sufficient consideration within the IPO is Palantir’s capability to trace the supply and pedigree of each single piece of information within the system, empowering granular entry management on a need-to-know foundation, which allows organizations to share info throughout borders/boundaries.

Huge knowledge is difficult. Offering granular entry management to huge knowledge is way tougher. Convincing delicate organizations that your tech is protected sufficient to share labeled info with different international locations/organizations is even tougher.

I can’t overstate how tough entry management is at scale and why it’s a key a part of Palantir’s current and future worth.

This is latest movies from Palantir explaining the tech:

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What I’m searching for on Demo Day:

  • Has the usability & approachability of Gotham considerably improved?

  • How versatile/customizable is the Gotham Object viewer? (Salesforce is FAR superior right here versus my 2015 information of Gotham)

  • How mature are the admin instruments and velocity to deploy? Are they mature sufficient that third get together contractors can create and handle Palantir cases?

  • Is there a strong market for third get together instruments, knowledge sources, and plugins?

  • What’s the AI providing, and the way does that assist organizations enhance resolution making?

  • Will there be sufficient rocket emojis used within the presentation to win over WSB?

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