Burry Critiques Palantir's Reliance on External AI Technology
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy PLTR?
Source: stocktwits
- Burry's Renewed Critique: Renowned investor Michael Burry publicly criticized Palantir during an exchange with Tesla's CEO Elon Musk, arguing that the company relies on AI models developed by others, like Anthropic, lacking its own AI software, which could undermine its competitiveness in defense.
- Stock Price Fluctuation: After two consecutive days of losses, Palantir's stock rose slightly to $151.6 on Wednesday, but fell over 1% in after-hours trading, indicating market concerns about its future performance.
- Controversy Over Military AI: Burry highlighted that Palantir's defense software depends on Anthropic's Claude AI model, raising broader questions about the use of AI in military decision-making, especially regarding civilian casualties in conflicts.
- Financial Transparency Issues: Burry pointed out that Palantir incurred $17.2 million in expenses in 2025 related to CEO Karp's use of a private jet, significantly higher than the previous year's $7.7 million, reflecting potential issues in financial management that could affect investor confidence.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 151.140
Low
50.00
Averages
192.88
High
255.00
Current: 151.140
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Key Contracts: The company has secured a $10 billion framework contract with the U.S. Army and a $448 million deal with the U.S. Navy, providing robust support for revenue growth through significant defense contracts.
- Sales Growth: Palantir's latest financial report revealed nearly $1.41 billion in sales, a substantial 70% year-over-year increase, with its U.S. commercial segment growing even faster at approximately 137%, highlighting strong demand for AI applications.
- Future Outlook: The company anticipates sales exceeding $7 billion by 2026, representing over 60% growth from the previous year, reflecting confidence in future market opportunities, although there are mixed opinions regarding its stock price relative to profitability.
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- Defense Contract Expansion: The company continues to strengthen its ties with the U.S. military, securing a ten-year contract worth up to $10 billion last year, alongside a $795 million expansion of its Maven Smart System deal, further solidifying its market position in defense.
- Strong Commercial Growth: In 2025, Palantir's U.S. commercial segment grew by 109% to $1.5 billion, with management guiding for at least 115% growth in 2026, highlighting its robust potential in the enterprise market.
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- Stock Price Fluctuation: After two consecutive days of losses, Palantir's stock rose slightly to $151.6 on Wednesday, but fell over 1% in after-hours trading, indicating market concerns about its future performance.
- Controversy Over Military AI: Burry highlighted that Palantir's defense software depends on Anthropic's Claude AI model, raising broader questions about the use of AI in military decision-making, especially regarding civilian casualties in conflicts.
- Financial Transparency Issues: Burry pointed out that Palantir incurred $17.2 million in expenses in 2025 related to CEO Karp's use of a private jet, significantly higher than the previous year's $7.7 million, reflecting potential issues in financial management that could affect investor confidence.
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- Stock Surge: Palantir Technologies (PLTR) shares rose over 9% in the last five trading days as tensions in the Middle East increased, indicating strong investor confidence in its role in defense spending and AI.
- Key Contracts: The company has secured a $10 billion framework contract with the U.S. Army and a $448 million deal with the U.S. Navy, providing robust support for revenue growth through significant defense contracts.
- Sales Growth: Palantir's latest financial report revealed nearly $1.41 billion in sales, a substantial 70% year-over-year increase, with its U.S. commercial segment growing even faster at approximately 137%, highlighting strong demand for AI applications.
- Future Outlook: The company anticipates sales exceeding $7 billion by 2026, representing over 60% growth from the previous year, reflecting confidence in future market opportunities, although there are mixed opinions regarding its stock price relative to profitability.
See More
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- Revenue Growth Target: Palantir aims for $7.2 billion in sales by 2026, with a projected annual growth rate of 45%, potentially reaching $46 billion by the early 2030s, which would represent a tenfold increase from its 2025 revenue of $4.5 billion.
- Defense Contract Expansion: The company continues to strengthen its ties with the U.S. military, securing a ten-year contract worth up to $10 billion last year, alongside a $795 million expansion of its Maven Smart System deal, further solidifying its market position in defense.
- Strong Commercial Growth: In 2025, Palantir's U.S. commercial segment grew by 109% to $1.5 billion, with management guiding for at least 115% growth in 2026, highlighting its robust potential in the enterprise market.
- Technological Competitive Advantage: Palantir's Foundry platform provides real-time data visualization, and its lack of true competitors allows the company to accelerate customer acquisition, creating a network effect where clients not only renew contracts but also expand their relationships.
See More
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- Burry's Renewed Critique: Renowned investor Michael Burry publicly criticized Palantir during an exchange with Tesla's CEO Elon Musk, arguing that the company relies on AI models developed by others, like Anthropic, lacking its own AI software, which could undermine its competitiveness in defense.
- Stock Price Fluctuation: After two consecutive days of losses, Palantir's stock rose slightly to $151.6 on Wednesday, but fell over 1% in after-hours trading, indicating market concerns about its future performance.
- Controversy Over Military AI: Burry highlighted that Palantir's defense software depends on Anthropic's Claude AI model, raising broader questions about the use of AI in military decision-making, especially regarding civilian casualties in conflicts.
- Financial Transparency Issues: Burry pointed out that Palantir incurred $17.2 million in expenses in 2025 related to CEO Karp's use of a private jet, significantly higher than the previous year's $7.7 million, reflecting potential issues in financial management that could affect investor confidence.
See More
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- Strategic Partnership Deepening: LG CNS and Palantir Technologies announced on Wednesday a deepened strategic partnership aimed at accelerating AI transformation initiatives across LG Group, marking further development on the foundation established in 2025.
- Enterprise-Wide Expansion: The partnership expands the application of Palantir software across LG Group, driving significant improvements in quality management and establishing a model for AI-powered operational transformation.
- Global Business Expansion: LG CNS CEO Shin-gyoon Hyun stated that this strategic partnership represents a pivotal turning point in expanding LG CNS's AX business to a global level, highlighting the company's focus on international markets.
- Innovation-Driven Technology: Through collaboration with Palantir, LG CNS not only enhances internal operational efficiency but also lays the groundwork for future technological innovations, further strengthening its competitiveness in the global market.
See More
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- Revenue Growth: UiPath reported Q4 revenue of $481 million, marking a 14% increase year-over-year and surpassing the market estimate of $464.81 million, indicating the company's ongoing growth potential in the automation software sector.
- Earnings Forecast Miss: Despite strong revenue performance, the company's operating income forecast of about $80 million fell short of the expected $80.5 million, leading to a 7% drop in PATH shares during after-hours trading.
- Potential Defense Orders: UiPath is in discussions with the U.S. Department of War regarding potential orders, with the CEO noting an increased demand for long-term strategic projects, which could lead to significant contract opportunities for the company.
- Market Sentiment Fluctuations: PATH trended as the top stock on Stocktwits with extremely bullish retail sentiment, despite the stock facing pressure due to the earnings forecast miss, reflecting strong market interest in the company's future prospects.
See More
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- Palantir Stock Performance: Palantir's shares have surged 94% over the past year, although they are down 27% from the November 3 high, indicating sustained market confidence in its long-term growth potential despite recent volatility.
- CEO Interview Impact: CEO Alex Karp's upcoming interview on CNBC marks his first since the onset of the Iran war, which is expected to significantly influence investor sentiment and market reactions in the current geopolitical climate.
- Dick's Sporting Goods Earnings: Dick's Sporting Goods will report earnings before the bell, with a 9.8% decline in stock price over the past three months, highlighting challenges in the retail sector amid sluggish consumer spending.
- Adobe Market Performance: Adobe's stock has fallen 22% in the last three months and is down 38% since last March, reflecting market concerns over the potential impact of artificial intelligence on its business operations.
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