Joe Lonsdale, co-founder of Palantir Technologies Inc. PLTR and founding partner of 8VC, on Thursday, shared his thoughts on current market trends, the influence of AI on businesses, and the future of big tech.
What Happened: While appearing on CNBC’s Squawk Box, Lonsdale spoke about the success of Palantir in the face of market volatility, attributing it to the effective implementation of AI.
He also addressed whether this success was exclusive to Palantir or indicative of a wider industry trend.
In response to a question about the potential of AI, Lonsdale agreed that immediate growth gains may not be apparent. However, he believes a significant portion of the U.S. services industry could be made more productive with AI.
“If you talk to people like Sam Altman and OpenAI and others … we’ve failed so far because this is not impacting the entire economy right away,” Lonsdale stated.
He added, “That said, the services industry in the U.S. is about $4.5 trillion in wages, probably about a third of that can be addressed and be made more productive with AI.”
He projected that by 2027 or 2028, this productivity increase would be reflected in the statistics.
When questioned about Apple Inc. AAPL, Lonsdale expressed skepticism about the immediate impact of AI on the company’s business.
He suggested that Apple might face challenges due to the diminishing relative quality of their new phones compared to older models.
Why It Matters: Lonsdale’s comments come in the wake of Palantir’s second-quarter earnings report, which showed a 27% year-over-year increase in total revenue, driven by a 55% increase in U.S. commercial revenue.
On Thursday, Palantir and Microsoft Corporation MSFT also announced their extended partnership. The aim is to deliver AI and analytics capabilities to the U.S. Defense and Intelligence Community.
Palantir’s product suite, which includes Foundry, Gotham, Apollo, and AIP, is set to be integrated into Microsoft Azure Government, as well as the Azure Government Secret and Top Secret clouds.
Additionally, Palantir will be among the first to adopt Azure’s OpenAI Service within Microsoft’s Secret and Top Secret environments.
Price Action: Palantir closed Thursday’s regular session at $29.28, up significantly by 11.25%. At the time of writing, the company’s shares had risen further by 1.40% to $29.69., according to data from Benzinga Pro.
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