outpacingthefrontier.com. I think we've experienced a turning point over the past week. Labs economics don't make sense, and enterprise customers don't trust them. They're politically unpopular, and not clearly allegiant to the US. They've pissed off the admin, Jensen, everybody. And they don't make any money. They lose a ton of money. They're stealing data.
But there's still some huge value to be captured somewhere above the hardware layer. Enter palantir. Karp has pitched all these exact points. Sovereign AI, data safety, software layer above the models, using open source. He has extreme allegiance to the Admin, and is a safe logo for corporates.
Law firms are bringing AI on prem this wk. Labs are stealing math solutions. Labs are running out of options.
Meanwhile pltr currently trades around 400B, 80% discount to a lab, with high single digit billion run rate accelerating growth at 95%. I think you're going to see a lot of that insane token revenue growth for OAI and anthr shift to outcomes with PLTR over the next 3-6mo and this can start growing triple digits at decabillion rev scale, with actual quality margins.
Long 172. It's basically the same idea as the vvv trade just for enterprise rather than consumer.