Palantir Technologies Inc PLTR CEO Alex Karp on Thursday responded to a short report by The Bear Cave calling the company an “AI imposter.”

The author of The Bear Cave, Edwin Dorsey, shared a tweet quoting Karp as saying, “the bear cave is a bear cave, they can stay in their bear cave.” Dorsey pointed out that he had previously been insulted by the CEO of eXp World Holdings Inc EXPI after a short report on the company.

In another tweet, Dorsey shared a “horror” story involving a Palantir customer, which stated that the software built by the company was “the worst & most expensive piece of software they had.”

Karp, meanwhile, spoke to Bloomberg on Thursday after hosting the company’s AIPCon customer conference. His response to critics of the company and its software was “to ask the Russians.”

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The assertions Dorsey makes in The Bear Cave report include:

• Palantir has seen a 130% increase in stock value in 2023 due to retail investor enthusiasm over its proclaimed AI capabilities. However, The Bear Cave views Palantir as an “AI imposter” and an “overhyped data consultant.”
• Management has fueled this enthusiasm, frequently mentioning “AI” during company calls. It was mentioned 68 times on their Q1 2023 conference call, up from 17 mentions in Q4 2022 and only six mentions in Q1 2022.
• The Bear Cave alleges that Palantir inflates its financial metrics through certain practices, like investing in companies and then requiring those companies to buy Palantir products. It reportedly invested about $400 million across 20 SPAC mergers, with those companies then purchasing at least $700 million in Palantir software.
• According to Dorsey, there are concerns about Palantir’s revenue growth, with anonymous Glassdoor reviews from Palantir salespeople suggesting a difficult sales environment and a hostile work environment.
• The company’s SEC filings and public communications are often filled with jargon and buzzwords, making it difficult to gain a clear understanding of the company’s operations and prospects, according to Dorsey.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo: World Economic Forum on Flickr