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The Genius Behind Palantir's SPAC Investments

By Neil Rozenbaum – Aug 27, 2021 at 10:00AM

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Not only is Palantir buying future revenue but it is also investing in potential mega-companies of the future.

In this video, I will talk about Palantir's (PLTR -1.12%) SPAC investments and how the company is actually buying future revenue as well as building an indestructible flywheel. I will also quickly touch on the recent news of an FBI glitch that made the stock drop 4%. You can find the video below. 

FBI glitch

Yesterday, news broke that a computer glitch in a software program used by the FBI allowed unauthorized employees to access private data. The software in question is Palantir Gotham, which has been used by various defense agencies and intelligence communities. But this wasn't a glitch, this was a case of misconfiguration. As one prosecutor wrote, "When data is loaded onto the Platform, the default setting is to permit access to the data to other FBI personnel otherwise authorized to access the Platform." 

A Palantir spokesperson added:

There was no glitch in the software. Our platform has robust access and security controls. The customer also has rigorous protocols established to protect search warrant returns, which, in this case, the end-user did not follow.

Buying revenue

It was revealed in Palantir's recent 10-Q that it has made an overall $250 million investment in 10 different companies. But what stood out to me is that some of these companies will be spending close to double the amount Palantir has invested in them on Palantir's Foundry platform. I'll list three of them. 

  • Sarcos Robotics: Palantir invested $21 million and Sarcos committed to utilize software and services from Palantir over the next six years for a total of $42 million.
  • Roivant Sciences: Palantir invested $30 million and Roivant Sciences will pay $39 million over a five-year period.
  • Celularity: Palantir invested $20 million and Celularity will pay $40 million over five years for access to Palantir's Foundry platform.

Not only is Palantir investing in what could be potential future mega-cap companies but it is also exposing its software to data that usually wouldn't be used by small start-ups. 

For the full insight, watch the video below. 

*Stock prices used were the closing prices of Aug. 25, 2021. The video was published on Aug. 26, 2021.

Neil Rozenbaum owns shares of Palantir Technologies Inc. The Motley Fool owns shares of and recommends Palantir Technologies Inc. The Motley Fool has a disclosure policyNeil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

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