Stock Price Soars 1057% in 4 Years... Silicon Valley's "New Star" Nurtured by Philosophy Major [Tech Talk]

Palantir CEO Alex Karp's Unconventional Career Path
Turned Down Law, Studied in Germany... Specialized in 'Critical Theory'
German Philosophy Reflecting on Nazism and Capitalism
Profound Influence on Palantir's Vision for Growth

Palantir, a big data analytics company supplying software to the US Central Intelligence Agency (CIA) and the UK Secret Intelligence Service (MI6), has emerged as a new star in Silicon Valley. Since its IPO in October 2020, its stock price has surged by 1057% over four years (as of the closing price on the 20th), and recently, the National Pension Service has also increased its investment in Palantir within its US stock portfolio.

The person who elevated Palantir to stand shoulder to shoulder with big tech companies is CEO Alex Karp. Karp is considered a very unique figure even in Silicon Valley. Unlike other IT company CEOs who are computer scientists or professional managers, he is a humanities scholar who studied German philosophy.

Alex Karp, CEO of Palantir. Palantir

CEO Karp Driving Palantir's Growth

Palantir is a big data company founded in 2001 by American tech entrepreneur Peter Thiel. Thiel reportedly founded Palantir after contemplating efficient ways to predict terrorism following the 9/11 attacks in the US. In its early days, Palantir provided data mining (programs that extract useful information from large datasets) and fraud prevention software for the CIA and US immigration authorities. Later, it began developing more sophisticated tools to assist military operations.

Today, Palantir offers various big data analytics tools such as Gotham, Apollo, and Foundry to its clients. Notably, Gotham was deployed in 2011 during the US military's 'Neptune Spear' operation that killed 9/11 mastermind Osama bin Laden at his hideout in Pakistan, establishing itself as a core technology in the military sector. Moreover, Palantir has grown into a big tech company providing solutions to private companies across 35 industries in 150 countries worldwide.

The person who realized Thiel's vision for Palantir is CEO Karp, who has been effectively managing the company since 2004. Karp and Thiel were classmates at Stanford University Law School, a prestigious US university. Instead of pursuing a career as a lawyer, Karp studied philosophy abroad at Goethe University Frankfurt in Germany. His major was 'Critical Theory,' which had a profound influence on 20th-century European philosophy, and his advisor was J?rgen Habermas, a professor at Frankfurt University regarded as one of Germany's top philosophical intellects.

Palantir's military intelligence analysis software, 'Gotham.' It became famous for being deployed in the 2011 operation to assassinate Osama bin Laden. Palantir YouTube

The Critical Theory that Karp was deeply engaged with reflects on German Nazism, which triggered World War II. Critical theorists caution against the excesses of capitalism and materialism and emphasize continuous reflection and critique against authoritarianism.

How Did Karp, a Philosophy Student, Become Palantir's CEO?

This raises a question: why did Karp, who studied a discipline valuing reflection and self-criticism against authoritarianism, accept the CEO position at Palantir? Palantir was born with support from the CIA's startup fund In-Q-Tel and currently develops surveillance technologies for spies at its US and UK headquarters.

We can find a clue from his mentor, Professor Habermas. Habermas's core theory is the 'lifeworld.' As society develops, our lives become more complex, and government systems and regulations become more acute, gradually encroaching on daily life. Habermas predicted that, given the characteristics of modern society, such acute systems could eventually 'colonize' ordinary people's lives.

His prediction became closer to reality after the 9/11 attacks. To search for terrorist organizations, intelligence agencies worldwide greatly expanded their authority to collect data on their own citizens, raising privacy concerns in Western societies. Palantir was born in this context. It helps intelligence agencies achieve their goals by quickly and efficiently processing the massive data collected by spies.

During Kaf's study abroad in Germany, his academic advisor was Professor J?rgen Habermas, a second-generation philosopher of the Frankfurt School known for establishing critical theory. Photo by EPA Yonhap News

Because of this, Palantir has faced criticism from numerous privacy protection and human rights organizations. However, CEO Karp differs from his mentor in believing that data collection using advanced programs can actually be a means to protect privacy.

What Positive Functions Does Karp Claim Palantir Has?

In a 2023 interview with the French media outlet Le Nouvel Observateur, when asked whether Palantir can respect civil liberties and human rights, Karp said, "To prevent terrorism early, you have to collect hundreds of millions of heterogeneous data points. Authoritarian states would naturally do this, but that method does not yield useful information. It only suffocates under a pile of data." He added, "However, if you collect only lawful data according to local laws and define and apply data collection rules, you can fight terrorism without infringing on personal data."

In other words, if intelligence agencies lack the ability to predict terrorism, they would have to widen surveillance to the entire population, but by utilizing Palantir's analytical capabilities, they can at least narrow that scope. Thus, he pursues a compromise that balances the government's role in ensuring national security with citizens' lifeworlds. This compromise has essentially become Palantir's business model itself.

On the 19th (local time), in an interview with US CNBC, the CEO of Kaf claimed that "Paganism has infiltrated American society and universities." Unlike typical Silicon Valley executives, he majored in philosophy and is also known for expressing his social and political views boldly. Screenshot from X

His philosophy of protecting both security and freedom is also evident in his views on artificial intelligence (AI). In the same interview, he argued that it is better for democratic countries such as the US, UK, and Europe to take the lead in AI weapons, stating, "Only then can we shift the balance of power in the algorithmic war with authoritarian states and protect everyone's sovereignty."

Of course, not everyone agrees with CEO Karp and Palantir's solutions. Recently, Palantir has actively expanded into the private sector by utilizing data analytics technologies such as financial information, voice recordings, and closed-circuit television (CCTV) footage identification.

Earlier, Australia's major supermarket chains Coles and Woolworths purchased Palantir's program last year for the purpose of 'workforce optimization,' sparking controversy. The program analyzes information such as employee movements, labor patterns, and shift timings to find the most efficient way to work. Luke Moon, a researcher at Queensland University in Australia, warned in a contribution to the nonprofit academic media The Conversation, "Such technology cannot track workers' sweat, hardships, and struggles to make a living," cautioning that "workforce optimization could become an extractive trajectory."