Palantir Signs A New Partnership

+ new short interest

Welcome back to DailyPalantir! Today we discuss Palantir’s latest partnership and what it means for their growing government business. Let’s get into it!

New Partnership

Palantir and Carahsoft Expand Partnership to Deliver Mission-Critical Software to the Canadian Public Sector

Quick summary on the new PR today:

- Palantir Technologies Canada Inc. and Carahsoft Canada have partnered to expand and accelerate the delivery of Palantir's operating systems to the Canadian Public Sector.

- Carahsoft has been authorized as the sole distributor of the Palantir Platform under the Government of Canada's Software Licensing Supply Arrangement (SLSA), offering cost-effective options for procuring Palantir licenses.

- This partnership provides SLSA clients with an expedited channel to acquire Palantir's software solutions, including the Artificial Intelligence Platform (AIP).

- Palantir's software is used globally for mission-critical purposes, such as situational awareness, healthcare optimization, evacuations, and financial crime prevention.

- The partnership aims to support digital modernization efforts of government agencies in the US and Canada by providing efficient access to Palantir's technology solutions.

Okay, this was a really nice PR to see. Carahsoft has been working with Palantir since 2022 to expand into the US gov. You can think of them as a system integrator that serves as a middleman between Palantir’s software and various gov organizations that would potentially buy it — Carahsoft takes a cut for giving Palantir the distribution.

Today’s PR was very nice to see because it implies that the partnership between the two organizations is not only working, but it is working well enough to expand to an entirely new country — Canada.

The partnership also serves as a response to previous concerns about Palantir's ability to secure government contracts amidst stiff competition. By teaming up with Carahsoft, Palantir can tap into a network of reseller partners contracted via NASA Solutions for Enterprise-Wide Procurement, which could streamline the process for government agencies to procure Palantir's modular solutions. This strategic alliance is designed to open new distribution channels and secure valuable contracts, enhancing Palantir's sales organization and channel program.

If Palantir can replicate this sales channel into the Canadian government, that can help with growth. Canada would likely not be a major part of the gov business growing, I think defense spending for NATO countries is where it really takes off, but it would be nice to see some more diversification.

Short Interest

Short interest as of 1/12/24

PLTR: Shares Sold Short: 102.52 M

Change from Last (+) 1.11%

Percent of Float 5.61%

Overall — short interest went up slightly from 2 weeks ago from 5.55% to 5.61%, but nothing too different from before.

Given earnings are in 10 days, it’s safe to assume we will see a short float of 5-6% going into earnings.

NSF & Palantir

The NSF, or National Science Foundation, partnered with a variety of companies to launch the NAIRR — National Artificial Intelligence Research Resource in order to realized a shared vision for AI implementation throughout the US.

Palantir made the list.

The NSF is a government organization in the United States. It is an independent federal agency created by Congress in 1950 with the mission to promote the progress of science; to advance the national health, prosperity, and welfare; to secure the national defense; and for other purposes. The NSF supports fundamental research and education in all the non-medical fields of science and engineering.

So, why does it matter that Palantir is working with them?

Firstly, governments are increasingly reliant on data-driven decision-making for national security, public safety, healthcare, and various other sectors. Palantir's AI and data analytics capabilities can significantly enhance the efficiency and effectiveness of government operations. By partnering with governments, Palantir can tailor its solutions to meet the unique needs of public sector agencies, ensuring that the technology is used to its full potential in addressing complex challenges. In this case, Palantir can use their software AND expertise to help aid the NSF, while making sure they understand how AI properly can be implemented.

Secondly, these partnerships solidify Palantir's position as a trusted partner in the public sector, which is a substantial market for technology companies. By demonstrating the ability to handle sensitive government data securely and effectively, Palantir can build a reputation for reliability and expertise in AI implementation. This trust is essential for expanding its government contracts and establishing long-term relationships that contribute to stable revenue streams.

• Government partnerships validate Palantir's AI solutions in mission-critical environments.

• Palantir's technology can help governments make better-informed decisions and improve public services.

• Collaboration with governments ensures that AI is implemented with the necessary security and governance measures.

• These partnerships provide Palantir with a competitive edge in securing future government contracts.

• Palantir's involvement in government AI projects can lead to innovations that benefit both the public and private sectors.

We have an example of this…

From the National Artificial Intelligence Advisory Committee (yes, it’s a thing because we made it a thing in the US 3 months ago):

The National Artificial Intelligence Advisory Committee (NAIAC) advises the President and the White House National AI Initiative Office (NAIIO) on the intersection of AI and innovation, competition, societal issues, the economy, law, international relations, and other areas that can and will be impacted by AI in the near and long term. Their work guides the U.S. government in leveraging AI in a uniquely American way — one that prioritizes democratic values and civil liberties, while also increasing opportunity.

On the board of this committee…Anthony Bak, head of AI at Palantir.

Why does this matter?

The NAIAC's role is to advise the President and the National AI Initiative Office on a range of issues related to artificial intelligence, including competitiveness, workforce, education, data privacy, and collaboration between the public and private sectors. Having a representative from Palantir on the board brings direct insights from a company at the forefront of AI technology development and implementation.

Palantir's experience in deploying AI solutions across various sectors, including defense, intelligence, healthcare, and finance, provides valuable perspectives on practical applications of AI. This can help shape national strategies that are informed by real-world use cases and challenges. Moreover, Bak's presence on the board ensures that Palantir has a voice in important discussions about the future of AI policy in the United States, which could have implications for regulation, research priorities, and public-private partnerships.

So, applying this to the NSF — It’s very good to be working with these government organizations. Whether they are new committees or established orgs, we need to be partnering and helping them in any way possible to get more connections.

Karp’s latest interview

Alex Karp had a discussion on a wide host of issues — he was more relaxed and had time to speak, it’s a good one for those that want to see it here.

That’s it for today — I’ll see you tomorrow in your inbox!