- Palantir CEO Alex Karp said he’s optimistic about the disruption brought about by Elon Musk’s DOGE.
- Karp said he thinks it will be good for the US and Palantir, which has large government contracts.
- CTO Shyam Sankar said Palantir’s real competition was “lack of accountability in government.”
Alex Karp, the cofounder and CEO of software company Palantir, said he thinks Elon Musk’s Department of Governmental Efficiency will disrupt the US government — and that it will be good for Americans and the company he leads.
“We love disruption, and whatever is good for America will be good for Americans and very good for Palantir,” Karp said in response to a question about DOGE during the company’s quarterly earnings call on Monday.
“Disruption, at the end of the day, exposes things that aren’t working,” he said. “There will be ups and downs. There’s a revolution. Some people are going to get their heads cut off. We’re expecting to see really unexpected things and to win.”
Two weeks into President Donald Trump’s second term, the DOGE-induced disruptions have included moves to dismantle USAID, the agency that handles US foreign aid, and buyouts for federal workers.
Palantir has contracts with government organizations, both in the US and abroad, many of which use its software for military operations and intelligence. In the US, Palantir has contracts with the US Army and the Department of Defense, including some worth hundreds of millions of dollars.
Palantir’s earnings report on Monday beat analyst expectations, with US revenue for the quarter growing 52% year-over-year. The company said its US government revenue for fiscal year 2024 grew 30% year-over-year to $1.2 billion. Palantir shares were up almost 24% after-hours amid earnings news.
Palantir has a close, and at times complicated, relationship with the US government. In 2016, Palantir sued the US Army, accusing it of bias in its bidding process. Palantir won the case and has since secured several contracts with the Army. In December, Palantir announced it secured a contract with the Army for more than $400 million.
The stated priority of DOGE, now a White House office led by Musk, is to make the government more efficient by cutting spending and reorganizing some federal agencies. In its first week, DOGE said it canceled $420 million worth of federal government contracts.
Karp recently defended Musk against criticism that a gesture he made resembled a Nazi salute. He told CNBC that calling Musk a Nazi was “completely absurd and a complete rewrite of history.”
Palantir CTO Shyam Sankar also said on Monday’s earnings call that DOGE would be good for the company.
“Palantir’s real competition is a lack of accountability in government,” Sankar said. “DOGE is going to bring meritocracy and transparency to government.”
