Palantir Announces A HUGE Partnership

Why Oracle is gamechanging for the company

Welcome back to Daily Palantir! In today’s newsletter, we’re primarily going to focus on the new Oracle x Palantir partnership announced — let’s get into it!

Okay, so today’s partnership was a big deal for Palantir.

From the PR:

As part of the agreement, Palantir will move Foundry workloads to Oracle Cloud Infrastructure. Palantir will also make its Gotham and AI Platforms deployable across Oracle's distributed cloud: in public cloud regions; Oracle Cloud Infrastructure Dedicated Regions; Oracle Alloy; Oracle EU Sovereign Cloud; Oracle Government Cloud; Oracle Roving Edge, and Oracle's air-gapped regions for defense and intelligence customers. Oracle's vast cloud footprint and sovereign AI capabilities will allow more organizations to use Palantir's leading platforms for data integration and decision-making. Oracle and Palantir are proving there is no trade-off. Organizations can have the best cloud infrastructure, cloud applications, and AI while meeting the highest sovereignty and security standards.

"Oracle is the only hyperscaler capable of delivering its entire AI and cloud suite to any business or government anywhere in the world," said Rand Waldron, vice president, Oracle. "By combining the performance, scalability, and flexibility of Oracle Cloud Infrastructure with Palantir's leading data and AI platforms, we will help our customers win in any industry or environment."

"Palantir and Oracle are both dedicated to defending western interests and institutions around the world," said Josh Harris, executive vice-president, Palantir. "Oracle Cloud Infrastructure's unique ability to help customers meet their regulatory, performance, and security needs will increase our impact and help our global clients gain the full benefits of cloud and AI."

Why does Palantir work with Hyperscalers?

Palantir's collaboration with major cloud providers like Amazon Web Services (AWS), Google Cloud Platform (GCP), and Microsoft Azure is a strategic move that benefits both Palantir and its clients.

It’s a big, big way for them to access distribution across GCP, Azure, and AWS clients.

By ensuring compatibility with these leading cloud services, Palantir enables its customers to leverage the robust infrastructure, global reach, and advanced capabilities of these platforms while using Palantir's data analytics software.

Working with AWS, GCP, and Azure allows Palantir to tap into the vast customer bases of these cloud giants. Many organizations already use one or more of these services for their cloud computing needs. Palantir's ability to integrate seamlessly with these platforms makes it easier for these organizations to adopt Palantir's software, as it fits into their existing cloud strategies.

Furthermore, each cloud provider offers unique features and services that can complement Palantir's offerings. For example, AWS has strong capabilities in machine learning and artificial intelligence, GCP is known for its data analytics and machine learning services, and Azure has a robust suite of tools for enterprise computing. By aligning with these providers, Palantir can enhance its own platforms with these complementary technologies.

Foundry is Hyperscaler Agnostic

So, understanding why Palantir is working with Oracle relies on understanding how Foundry works with every company.

Foundry's compatibility with all major hyperscalers like AWS, GCP, and Azure is a testament to its flexibility and adaptability as a platform. This cross-compatibility is crucial for clients who want to leverage the unique advantages of different cloud providers or who require multi-cloud strategies to avoid vendor lock-in and increase resilience.

To enable Foundry's use across these hyperscalers, Palantir has designed the platform with a cloud-agnostic architecture. This means that Foundry can be deployed on any cloud infrastructure without significant modifications. The platform's containerization, typically using technologies like Kubernetes, allows it to run on various cloud environments seamlessly.

Additionally, Foundry includes interfaces and APIs that are designed to interact with the services and tools provided by these hyperscalers. Whether it's AWS's S3 for storage, GCP's BigQuery for data warehousing, or Azure's Active Directory for identity management, Foundry can integrate with these services to enhance its capabilities.

My thoughts on this deal:

1/ The market likes this because it solidifies distribution from another channel for Palantir. Currently, Palantir works with all the major hyper scalers -- AWS, Azure, GCP.  Now working with Oracle means they have potential access to over 430,000 new customers that may be interested in adopting Foundry on Oracle's cloud. They don't need to get all those customers, but working with Oracle and having the distribution to them only makes it easier for the street to realize that customer count is eventually going to explode which will increase top-line revenue.

2/ One big line from the PR today: "Palantir and Oracle are both dedicated to defending western interests and institutions around the world." We keep talking about this, but geopolitically, the world is a mess. Western values are good. Most companies want to operate in countries that defend those values. 

A decent number of countries want to keep those values secure for decades to come. In order to do that, working with technology partners that distribute data, ai, and cloud services that ALSO DEEPLY CARE about making sure their technology is being used as a tool for western interests is VERY important and makes BUSINESS sense for all parties involved. 

Palantir's focus on western values was seen as negative and distracting since they went public -- given what has happened in the past 4 years, I would argue it has become a legitimate moat for the company. 

Why moat? Because Google is not going to come out tomorrow and say they want to defend western values -- the employees who didn't get their Starbucks on time from the office cafe would start a petition to make Google retrace their statements. 

Palantir doesn't have that issue. 

3/ Security is becoming VERY important in the cloud due to increased cyber-attacks -- another big line from the PR: "Oracle and Palantir are proving there is no trade-off. Organizations can have the best cloud infrastructure, cloud applications, and AI while meeting the highest sovereignty and security standards." It seems like this offering is going to satisfy many government agencies that need cloud/ai security but also want very sophisticated software that drives business intelligence, and Palantir x Oracle can get that done. 

Overall, this is a really strong partnership. Larry Ellison, Founder of Oracle, wanted to buy $PLTR back in 2017, so it seems like they wanted to work together in some capacity for a while now, and today it's becoming official.

Thank you for reading — I’ll see you tomorrow in your inbox!