During a recent appearance on The Ben Shapiro Show, Shyam Sankar, Chief Technology Officer of Palantir Technologies Inc., offered insights on the state of American manufacturing, specifically praising the methodologies employed by Tesla Inc. and SpaceX. He indicated that these companies have set a benchmark for revitalising the industrial capabilities of the United States. “It’s not true that we’re bad at making things in this country. The ability to do that in a modern way is asymmetrically distributed,” he stated.
Sankar elaborated on the manufacturing practices at SpaceX and Tesla, asserting that SpaceX incorporates a significantly vertically integrated production model, while Tesla operates as a "software-defined production line." Sankar's comments come on the heels of a remarkable surge in Palantir’s stock, which has risen over 312% in the past year, bringing the company’s market capitalisation to a level that now surpasses that of traditional defence contractor Lockheed Martin Corp.
As Palantir pivots from its longstanding government-focused roots, the firm's commercial revenue has become a vital component of its business model, accounting for 50% of its overall revenue. This shift has been accompanied by an increasing emphasis on artificial intelligence, particularly in military applications. The company recently announced a partnership with Amazon Web Services to provide Anthropic’s Claude AI models to U.S. intelligence agencies.
Sankar was critical of conventional manufacturing methods, specifically pointing out deficiencies in supply chain management. “When I interact with these companies, their understanding of their supply chain is very shallow. They treat it as a black box,” he remarked, drawing a contrast with Elon Musk's comprehensive understanding and approach at his companies.
Addressing concerns surrounding U.S. military readiness, Sankar highlighted significant gaps, noting, “If you look at the amount of weapons we have on hand to fight China, war games put it at 8 days. It should be closer to 800 days.” He cited the ongoing conflict in Ukraine as a stark example of production shortfalls facing the defence sector.
The strategic direction outlined by Sankar aligns with the company’s broader goals, as CEO Alex Karp has voiced aspirations for Palantir to establish itself as a leader in the AI space. Analyst Dan Ives from Wedbush Securities has earmarked 2025 as a pivotal year for Palantir’s AI platform, predicting that the company will continue to integrate advanced manufacturing techniques along with AI capabilities across both government agencies and the commercial landscape.
Source: Noah Wire Services