After a remarkable surge in wealth in 2023 that solidified Alex Karp’s status among the world’s Black billionaires, the co-founder of Palantir Technologies has now seen his fortune plunge significantly since the start of 2024. This downturn is due to the revaluation of his private investments and a single-digit decrease in Palantir’s shares.
The revaluation of his private investments and a single-digit decline in Palantir’s shares have contributed to a $100-million decrease in his net worth, dropping from $2 billion on Jan. 1 to $1.9 billion as of the latest report by Forbes, a leading U.S. business magazine.
Market volatility shaves off $100 million from Karp’s net worth
This $100 million decrease in Karp’s wealth, equivalent to an average daily loss of $6.67 million, is directly linked to the market value slump of his 2.63-percent stake in Palantir Technologies. Karp co-founded the company in 2003 alongside Peter Thiel, Nathan Gettings, Joe Lonsdale, and Stephen Cohen.
Having witnessed impressive gains in 2023, Palantir recently encountered a setback. Its shares, traded on the Nasdaq Stock Exchange, fell by a modest 1.82 percent, from $17.07 on Jan. 1 to $16.76 at the time of this report. Consequently, the company’s market capitalization dipped below $37 billion according to data tracked by Billionaires.Africa.
Palantir’s $250 million defense contract fuels AI and ML advancements
Despite the significant decline in his fortune, Alex Karp maintains his position among the world’s Black billionaires, boasting an estimated net worth of $1.9 billion. According to Forbes, Karp presently holds the 1,585th spot on the list of the world’s richest individuals.
In the third quarter of 2023, Palantir Technologies under Karp’s leadership, clinched a $250 million contract with the U.S. Defense Department to advance research and development in the fields of artificial intelligence (AI) and machine learning (ML).
