Rise of Artificial Intelligence: Nvidia and Palantir in the Spotlight

In the past two years, the large technology landscape has significantly shaped the narrative around artificial intelligence (AI). The 'Magnificent Seven,' which includes heavyweights like Microsoft, Amazon, and Alphabet, have invested billions in companies like OpenAI, the creator of ChatGPT, as well as its rival Anthropic. However, alongside these heavyweights exists Tesla, the project by Elon Musk, which aims to develop self-driving cars and humanoid robots for the mass market. A key component of many generative AI applications driven by these digital giants is Nvidia's graphics processors and proprietary software solutions, without which such innovations would hardly be feasible. Since the release of ChatGPT on November 30, 2022, Nvidia has established itself as the undisputed market leader, leaving its 'Magnificent Seven' peers far behind with a remarkable share price increase of over 700% by December 2024. Despite all this, the market also holds enormous potential for other companies. An outstanding example is Palantir Technologies, which asserts itself in the field of enterprise software and is seen by investors like Chamath Palihapitiya as untapped potential that could possibly become the next Nvidia. In a recent earnings conference, Palantir CEO Alex Karp indicated that data integration is the central component in the development of AI-based services. Karp emphasized that the real strength does not lie in the large language models (LLMs) themselves, but in how these models are supplied with data through supporting software integrations. This is the area where Palantir, in his opinion, has a significant advantage.