After experiencing a substantial loss of half a billion dollars in his wealth in September, Alex Karp has, for the second time this year, reclaimed his place among the exclusive list of Black billionaires, with a net worth surpassing $2 billion.
This remarkable resurgence is attributed to the outstanding performance of his stake in the leading artificial intelligence (AI) and big data analytics firm, Palantir Technologies.
According to Forbes, Karp, ranked among the world’s Black billionaires, has witnessed a $300 million increase in his net worth, rising from $1.7 billion on Sept. 25 to $2 billion at the time of drafting this report.
This financial recovery follows a $500 million decline in his wealth between Aug. 2 and Sept. 25, when his net worth dropped from $2.2 billion to $1.7 billion.
The recent upswing in his wealth can be directly linked to the exceptional performance of his stake in Palantir Technologies, a company he co-founded in 2003 alongside Peter Thiel, Nathan Gettings, Joe Lonsdale, and Stephen Cohen. This development brings his year-to-date wealth gains to an impressive $700 million.
The surge in Palantir’s stock value, driving the significant increase in the market worth of Karp’s 2.63-percent stake in the big data analytics firm, is attributed to the announcement of the company’s $250-million contract with the U.S. Department of Defense. The contract aims to advance research and development in artificial intelligence (AI) and machine learning (ML).
This newly inked three-year agreement signifies Palantir’s deepening collaboration with the U.S. government and reinforces its growing role at the intersection of AI and defense. It builds upon Palantir’s established collaborations with the Army Research Lab, dating back to at least 2018.
However, across the Atlantic, Palantir faces a wave of skepticism in the United Kingdom, casting a shadow over its global expansion plans. This skepticism primarily stems from Palantir’s involvement in the bidding process for the UK’s National Health Data contract, valued at £480 million ($595 million).
Stakeholders, including medical professionals, privacy advocates, academics, and members of the ruling Conservative Party, have expressed reservations regarding Palantir’s potential selection for this significant contract.
