Palantir Vs. OpenAI: The AI Underdog That Might Be The Smarter Bet

Core Insights - OpenAI has achieved a $500 billion private valuation, while Palantir Technologies Inc. offers a public, revenue-backed investment opportunity in the AI sector [1][2] - Palantir generates $4.16 billion in sales with a growth rate of 45%, contrasting with OpenAI's projected $13 billion revenue and 3x growth [2][5] - Palantir's AI-driven platforms are utilized by enterprise and government clients, providing a tangible presence in the AI market [3][5] Revenue and Growth - Palantir's revenue growth of 45% is notable, although it is slower than OpenAI's projected growth [5] - The company benefits from recurring revenue and cash flow, which are disclosed in public filings, allowing for better measurement of AI exposure [5][6] Valuation and Market Expectations - Palantir's stock trades at high valuation multiples (605.03), indicating that much of the market excitement is already priced in [4][6] - The high valuation reflects ambitious growth expectations, suggesting that any slowdown in growth or contract expansion could temper gains [5][6] Competitive Positioning - Palantir is positioned as an underdog in the AI space, focusing on real-world AI adoption and monetization, contrasting with the hype surrounding OpenAI [6][7] - The company offers a revenue-backed, publicly tradable option for investors seeking AI exposure, but caution is advised due to its high valuation [7]