Palantir Technologies, a company often operating at the intersection of data analytics and national security, recently reported a significant surge in its fourth-quarter earnings, demonstrating 70% year-over-year revenue growth to reach $1.407 billion. This financial success, however, served as a backdrop for CEO Alexander Karp’s broader commentary on the global landscape of artificial intelligence adoption, particularly his concerns regarding Canada and Europe. Karp articulated a vision of a world bifurcating into “AI haves” and “have-nots,” suggesting that many Western nations, outside of the United States, are lagging in integrating advanced AI software.
Karp’s observations were rooted in Palantir’s own performance, noting that its U.S. business alone grew 93% year-over-year in the fourth quarter, now constituting 77% of the company’s total revenue. He characterized this divergent growth as concerning, implying that Palantir’s unique success highlights a broader issue rather than simply celebrating corporate achievement. His remarks at the World Economic Forum in Davos echoed a sentiment previously voiced within the Trump administration, highlighting a perceived reluctance within many Western economies to fully embrace AI technologies. Karp specifically pointed out a “real hesitance to adopt these kind of products in the West outside of America,” contrasting this with the more rapid adoption observed in China and the United States.
The Palantir CEO did not shy away from naming specific regions, citing a “lack of adoption in Canada, Northern Europe, and in Europe in general.” He even singled out France as a country that, despite having a clear understanding of the problem, has found itself without viable alternatives, leading to renewed contracts with Palantir, such as the three-year deal with French intelligence services in December 2025. Karp suggested that this struggle to adopt new technologies could lead to significant political shifts in places like Northern Europe and Canada, positing that a lack of technological solutions might fuel the adoption of “ideologies that make no sense.”
This perspective, however, arguably overlooks several factors influencing AI adoption outside the U.S. European and Canadian regulatory frameworks, for instance, often prioritize data privacy, civil liberties, and vendor diversity more heavily than their American counterparts. Many governments in these regions also express a preference for sovereign or domestic solutions, especially concerning critical infrastructure. Furthermore, Palantir’s success has been significantly bolstered by a uniquely favorable U.S. defense-centric market, a context that may not be directly transferable to other nations with different geopolitical priorities or procurement processes. Analysts, nonetheless, appear to align with Karp’s assessment. Bank of America Research, for example, interpreted Palantir’s strong earnings as a “warning to slow adapters” regarding AI, emphasizing that “the clock is ticking.” They underscored Palantir’s intentional strategies in product development and market approach as key to its “exponential growth,” positioning the company as one poised to “survive and thrive in the chaos” of the evolving AI market.
Within corporations, Palantir’s leadership team, including Karp and President Shyam Sankar, described a similar divide, labeling organizations as AI “haves” and “have-nots.” Chief Revenue Officer Ryan Taylor illustrated this by detailing how some clients are initiating substantial deals, ranging from $80 million to $96 million, and rapidly expanding their usage within months. He cited examples of utility and energy clients who quadrupled or quintupled their annual contract values in 2025, categorizing these as “AI-native enterprises.” Taylor emphasized that these customers are not merely experimenting with AI; they are making significant, large-scale commitments.
Karp further elaborated on this internal corporate dynamic, asserting that these early, large-scale adopters are “defining the future of their industries,” while those still engaging in pilot programs are “fighting for survival in the present.” Palantir’s deep integration into the corporate sphere is becoming increasingly evident, with a notable increase in mentions across various earnings calls. The company’s strategic focus on supplying AI-enabled systems to the U.S. government and defense sector is also a critical component of its growth. This includes a U.S. Navy contract worth up to $448 million for modernizing the shipbuilding supply chain and the widespread use of its Maven defense AI platform, which is currently supporting multiple real-world military operations.
Given Palantir’s current capacity constraints and the robust demand from the U.S. market, Karp has little immediate incentive to alter his critical stance on international AI adoption. He openly stated that the company “really doesn’t have the bandwidth to do anything that’s difficult outside of America.” He also raised questions about the efficacy of European procurement systems, suggesting they might not be “load-bearing” enough to acquire “the best product,” particularly if it means prioritizing U.S. vendors over domestic options. Karp conveyed a sense of the formidable challenge facing international competitors, questioning their ability to match Palantir’s output. “To believe you can go and build companies without this is supremely dangerous,” he remarked, challenging whether other tech companies and countries could achieve in a year what Palantir produces in a single quarter.
