This is what Palantir says gives it an competitive advantage

Shares of Palantir (PLTR) are rising after it was announced that the company is joining the S&P 500 (^GSPC). Matt Babin, head of energy and natural resources at Palantir, joins Market Domination to discuss the competitive software landscape and the milestone of being added to the S&P 500.

"I'm more focused on what we do than what other people do because building great software takes your entire focus," Babin explains.

He believes that Palantir's competitive advantage boils down to "the depth and time we've put into the ontology": "Let's use the example of BP (BP), that pressure system, that's not just the nouns and the assets that they use. That's all the verbs between them. The actions that you take, the decisions that you make as a company. And so building that flexible framework for a data model for the way your company does business, if you do that part right, then you can layer anything on top."

Babin calls Palantir's addition to the S&P 500 "exciting," and explains that moving forward, there are a few things top of mind. "I think the first one is just keeping it in the energy domain. The energy space is full of standards. There's safety standards, there's construction standards, and the rigor around meeting those standards is pretty high. I think the rigor that the index keeps on getting in is equally high," Babin says.

He continues, "I think the other is, as someone who came out of the government space, who worked on the government side of our business, you don't have to choose between being a mission-oriented company and being a commercially successful company. We haven't sacrificed anything on our mission and our intent on the work we do on that side. As a personal employee, the work I have to do today and tomorrow is the same as it was if the announcement had been different on Friday. So nothing there changes at all."

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This post was written by Melanie Riehl

Video transcript

There are companies out there who would certainly like to compete for your customers, right?

I, you know, these companies Microsoft the data bricks, I mean, they're putting real effort into this.

Ho how do you see just a competitive landscape kind of evolving from here?

Yeah, I mean, I I'm more focused on what we do than, than what other people do because building great software takes your entire focus.

I think, what do you think that your competitive advantages there?

I, I really think it's the depth and time we've put into the ontology, right?

I mean, if you look at again, let's use the example of BP that pressure system, that's not just the nouns and the assets that they use.

That's all the verbs between them, right?

The actions that you take, the decisions that you make as a company.

And so building that flexible framework for a data model for the way your company does business.

If you do that part, right, then you can layer anything on top.

Um I wanna come back to what we were talking about in the beginning that you guys are being added to the S and P 500 which I know is not, not in your purview doesn't affect your day to day, but we were talking um, in the break, just sort of about that milestone for the company.

That's something you guys are sort of talking about, internally excited about or you just really focused on what you're doing.

I mean, of course, it's exciting.

Right.

It's, it's a, it's a big piece of news.

Um, I, there's three different ways that, that I think about it.

I think the first one is just keeping it in the energy domain.

Right?

The energy space is full of standards, right?

There's safety standards, there's construction standards and the, the rigor around meeting those standards is pretty high.

I think the rigor that the index keeps on, on getting in is, is equally high and we used to get asked all the time by energy companies when we were smaller and younger, you know.

Ok, great.

The tech looks fantastic, but I make decisions on decade time frames.

I'm gonna be operating this field for a generation.

Are, are you still gonna be around?

And I think that's sort of a signal to the market as a whole, but particularly in energy, like, yes, like we've, we've met these standards and, and we're here to stay.

Um, I think the other is, you know, someone who came out of the government space who worked on the government side of our business, you don't have to choose between being a mission oriented company and being a commercially successful company, right?

We haven't sacrificed anything on our mission and our intent on the work we do on on that side as a personal employee.

Uh the work I have to do today and tomorrow is the same as it was if the announcement had been different on, on Friday.

So nothing there changes at all.

Matt.

Thank you so much for joining the show today.

That was great.

We appreciate it.

Thanks for having me.