African-American billionaire Alex Karp loses $500 million in 8 weeks

Alex Karp, a prominent African-American billionaire renowned for his co-founding role in Palantir Technologies, has experienced a substantial decline in his net worth, losing half a billion dollars in the past eight weeks.

This downturn is closely tied to the recent dip in the market value of his stake in the software giant. According to U.S. business magazine Forbes, Karp’s net worth has declined by $500 million, plummeting from $2.2 billion as of Aug. 2 to $1.7 billion.

This significant financial setback follows a period of remarkable wealth accumulation when Karp’s net worth surged by $900 million, from $1.3 billion on Jan. 1 to $2.2 billion on Aug. 2.

The $500-million decline in Karp’s wealth can be directly attributed to the sudden slump in the market value of his 2.63-percent stake in Palantir Technologies, the company he co-founded back in 2003 alongside Peter Thiel, Nathan Gettings, Joe Lonsdale, and Stephen Cohen.

Having witnessed impressive gains in the first seven months of 2023, Palantir Technologies recently encountered a setback. Its shares, traded on the Nasdaq Stock Exchange, nosedived by an alarming 29 percent, falling from $19.99 on Aug. 2 to $14.18 at the time of this report. Consequently, the company’s market capitalization dipped below the $35-billion threshold.

The slump in Palantir’s stock prices has unfolded against a backdrop of escalating uncertainty, chiefly revolving around the company’s involvement in the bid for the UK’s National Health Data.

A broad spectrum of stakeholders, including doctors, privacy advocates, academics, and members of the ruling Conservative Party, have expressed reservations regarding Palantir’s potential selection for the £480-million ($595 million) contract.

While Palantir is currently favored to secure the lucrative NHS contract, concerns have arisen due to its contentious associations, particularly with co-founder Thiel, its military involvement, and its role in U.S. border control.

Allegations have surfaced that its technology may have been employed in the detention of migrants in the United States and the orchestration of drone strikes in Afghanistan.

Given this contentious history, questions persist regarding Palantir’s suitability as the custodian of the NHS’s sensitive healthcare data. Critics are left pondering whether the company can be entrusted with such a critical responsibility, given its contentious legacy.