PALANTIR CEO ALEX KARP SAYS DOGE IS A 'REVOLUTION' AND 'SOME PEOPLE ARE GOING TO GET THEIR HEADS CUT OFF'

• Palantir CEO Alex Karp said he was optimistic about the disruption brought about by Elon Musk's DOGE.
• Karp said it would be good for the US and Palantir, which has large government contracts.
• Palantir's chief technology officer said its real competition was a "lack of accountability in government."

Alex Karp, the cofounder and CEO of the software company Palantir, said that Elon Musk's Department of Government Efficiency would disrupt the US government — and that it would 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 the US Agency for International Development, 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 that 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 over a gesture he made that resembled a Nazi salute. He told CNBC that calling Musk a Nazi was "completely absurd and a complete rewrite of history."

Palantir's chief technology officer, 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."

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2025-02-04T02:58:41Z