Palantir Wins 2 New Deals

One for health, one for Space

Welcome back to DailyPalantir! On Thursday last week, Palantir got two brand new deals, let’s dive into them.

Public Health Deal: Advanced Research Projects Agency for Health

Palantir announced a significant deal with the Advanced Research Projects Agency for Health (ARPA-H). The collaboration aims to leverage AI and machine learning to accelerate better health outcomes. Palantir’s Foundry software will play a critical role in driving key workflows by providing a robust data strategy and infrastructure. This partnership is set to enhance business operations within ARPA-H, enabling continuous improvement and efficiency in health-related initiatives.

The contract, valued at $19 million over two years, underscores the importance of integrating AI into healthcare to drive innovation and effectiveness. Palantir's involvement highlights their ongoing commitment to public health by providing data infrastructure and AI tools. This partnership builds on their previous work with organizations like the CDC and the FDA, where they have successfully implemented similar technologies to improve disease surveillance and speed up drug reviews.

According to ARPA-H, the collaboration with Palantir is expected to transform business efficiency and accelerate program design by harnessing the power of data and AI. This approach aims to unlock unprecedented levels of productivity and success, aligning with ARPA-H's mission to deliver life-changing healthcare outcomes. Palantir's software will support the agency's efforts to track and learn from health data, ensuring accountability and transparency in achieving their goals.

Now, another reason this deal is so important is because Palantir hasn’t gotten a huge public health deal since late 2022 with the CDC for 443M. We got some deals since then, but this deal uniquely is important since it’s with a young agency willing to build out their data platform, for 10M a year, on Palantir. It demonstrates the growing need for AI-driven solutions in government health agencies, reflecting a broader trend of incorporating advanced technologies to enhance operational efficiencies.

I had dinner with the head of Public Health at Palantir last week, Hirsh Jain:

Here’s what he said on the deal in the public PR:

“ARPA-H is an incredible investment in the next generation of life-changing healthcare outcomes. We are honored to provide our software to support their mission and deliver the latest commercial technology to transform their operations,” said Hirsh Jain, Head of Public Health and Senior Vice President, Federal at Palantir.

Overall, really nice to see more public health deals happening with new agencies that want to embrace entire platforms vs. just software applications.

Starlab Deal

PR:

Palantir's AI-driven software enables analysts, users, and decision-makers alike to optimize the entirety of space architecture. Palantir helps deliver cutting-edge, adaptable software solutions from the ground to the edge – helping ensure space capabilities are maximally resilient, effective, and accessible,

Starlab Space and Palantir will leverage data modeling through digital twins and AI technologies to enhance Starlab's operations throughout the enterprise. The Starlab digital twin will optimize resource allocation, mission planning, and overall system performance, reducing operational costs and streamlining on-board operations for the Starlab crews. Using Palantir's technology, Starlab will be able to identify potential issues and predict maintenance, helping extend the lifespan of critical components. Ground Predictive Processing will also optimize on-board research by modeling the microgravity environment and completing pre-launch analysis.

This partnership with Starlab Space is a significant milestone for Palantir as it strengthens their foothold in the commercial space sector. By integrating their AI and data analytics technology into space operations, Palantir demonstrates its ability to provide critical infrastructure for one of the most challenging and innovative industries. This not only showcases the versatility of their software but also positions them as a key player in the rapidly growing space market. It’s also just really, really cool. Space is a HUGE market with a growing TAM.

For Palantir, the collaboration with Starlab Space opens up new avenues for growth and revenue. The commercial space industry is expected to expand significantly over the next few decades, with increasing investments in space exploration and infrastructure. By establishing themselves early in this market, Palantir can secure long-term partnerships and contracts, ensuring a steady stream of business as the industry evolves. Their expertise in managing complex data systems can become a standard for space operations, giving them a competitive edge.

Now, what does Starlab do? Well, they are literally building a commercial space station, and they want Palantir to be the operating system for it…

Moreover, the success of this partnership can lead to further opportunities with other space companies and government agencies. As Palantir proves its capability to enhance space station operations, other players in the industry may also seek their services. This can result in a network of partnerships that solidify Palantir’s reputation and influence in space technology. Ultimately, this deal is a strategic move that aligns with Palantir’s broader ambitions to be at the forefront of technological innovation across various high-stakes sectors.

Quotes from the PR:

"Palantir's advanced AI technologies will revolutionize how space stations are managed and operated," said Tim Kopra, CEO, Starlab Space. "Further, Palantir's expertise in data analytics and predictive modeling will drive innovation and efficiency across the entirety of our joint venture. Together, we are poised to advance the frontiers of space research and ensure we remain resilient, effective and adaptive as we forge into this new era of commercial space exploration."

"Starlab is a commercial leader working to solve some of the most complex engineering and operational challenges in the exploration of space," said Alexander C. Karp, co-founder and chief executive officer of Palantir Technologies Inc. "We could not be more enthusiastic about our partnership as we work to extend our competitive edge through the provision of decisive and real-time intelligence around the world and in space."

More Deals, More Industries…

The two new deals Palantir secured—one with the Advanced Research Projects Agency for Health (ARPA-H) and the other with Starlab Space—highlight the company’s growing versatility and potential for scalability. These contracts showcase Palantir's ability to cater to a diverse range of industries, from healthcare to space exploration, demonstrating the broad applicability of their technology. By entering into these varied sectors, Palantir not only diversifies its portfolio but also reduces dependency on any single industry, thus mitigating risks associated with market fluctuations in specific sectors.

The ARPA-H deal emphasizes Palantir’s strength in public health and its capacity to drive innovation through data analytics and AI. This $19 million contract involves using Palantir’s Foundry software to support the agency’s mission of improving health outcomes. By providing a robust data strategy and infrastructure, Palantir helps ARPA-H enhance operational efficiency and make data-driven decisions. This partnership builds on Palantir's existing work with health organizations like the CDC and the FDA, reinforcing its position as a key player in public health technology.

On the other hand, the Starlab Space deal opens up exciting opportunities in the commercial space industry. Starlab Space, which is developing a commercial space station, will use Palantir’s AI and data modeling technologies to enhance their operations. This partnership allows Palantir to demonstrate its capabilities in a highly specialized and innovative field, showing that their software can manage complex systems and predict maintenance needs in space. This diversification into space technology not only boosts Palantir's credibility but also positions it for future growth in a rapidly expanding industry. SpaceX has yet to go public yet, but is already worth $200B in the private markets. The commercial space TAM continues to grow.

These deals are crucial for Palantir’s ability to scale because they validate the company’s technology in diverse applications, attracting potential new clients from various sectors. As Palantir proves its effectiveness in both healthcare and space, other industries may also consider adopting their technology. This broad acceptance can lead to an increased customer base, driving revenue growth and enabling the company to scale its operations more efficiently. The ability to handle large-scale, complex projects in different fields also demonstrates Palantir's readiness to support larger and more varied client demands.

One thing that is important to understand is that if Palantir can continue to scale into very diverse industries, ranging from Public Health to Space Stations…the opportunity for them to showcase their software in different areas to other potential customers in diverse industries only becomes more attractive. There are plenty of industries around the world that need their software but are unsure of how they would implement it. The more clients, the more case studies, the better chance for Palantir to continue to show how valuable they are.

That’s it for today - see you tomorrow!

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