Table of Contents
Key Points
- Palantir CEO Alex Karp’s net worth has dropped to $7.7 billion, losing $2.3 billion in a month due to the company’s stock slump.
- The AI firm’s market value dipped below $180 billion, reversing earlier gains driven by strong earnings and rising demand for AI-powered solutions.
- Palantir posted a record $467.92 million net income in 2024, doubling from the previous year as U.S. and government contracts fueled revenue growth.
Exactly one month after joining the ranks of Black billionaires worth over $10 billion, Alex Karp, CEO of Palantir Technologies, has seen his net worth drop significantly to $7.7 billion.
Since Feb. 11, Karp—currently the third-richest Black person in the United States—has lost $2.3 billion, bringing his fortune down from $10 billion to $7.7 billion. The decline is tied to the performance of his 2.63-percent stake in Palantir.
The AI and big data analytics firm has seen its stock price plunge more than 30 percent over the past month, dragging its market capitalization below $180 billion and pushing Karp’s stake under $5 billion.
Karp’s wealth dips amid stock decline
Palantir's stock slump comes amid a broader Wall Street sell-off, reversing a more than 55-percent surge earlier this year. That rally, which pushed the company’s market capitalization above $260 billion, was fueled by a stronger-than-expected earnings report.
The Denver-based firm reported a 28.79-percent jump in revenue for the 2024 fiscal year, reaching $2.87 billion, up from $2.23 billion in 2023. Demand for AI-powered solutions has been a major growth driver, boosting investor confidence before the recent downturn.
Despite the drop in his wealth, Karp remains the third-richest Black person in the U.S. and now ranks as the world’s 400th richest person, slipping from his previous spot on the Forbes real-time billionaires list. He trails Robert F. Smith, founder of Vista Equity Partners, and David Steward, chairman of World Wide Technology.
Palantir's AI growth fuels profits
Under Karp, Palantir posted a record net income of $467.92 million in 2024—more than double the $217.38 million reported the previous year. Total assets climbed 40.21 percent to $6.34 billion, while equity rose from $3.56 billion to $5.1 billion, strengthening its financial position.
Revenue growth was particularly strong in the U.S., where sales jumped 38 percent year-over-year to $1.9 billion. Government contracts remained a key driver, with revenue from that segment rising 30 percent to $1.2 billion. Palantir’s commercial business also saw solid gains, with revenue up 54 percent to $702 million.
The company secured 129 deals worth at least $1 million, including 58 contracts valued at $5 million or more and 32 exceeding $10 million. Its customer base expanded by 43 percent, underscoring its growing influence in the AI market.
