Palantir Grows Like Nvidia Without Joining AI Spending Frenzy

Palantir Technologies Inc. (NASDAQ:PLTR) has been growing at an incredible rate, outpacing many of its peers in the AI space.

Unlike some companies that are investing heavily in building their own AI models or data centers, Palantir chose a different path.

Instead of building its own AI model, Palantir built software designed to work with whichever AI model its customers choose.

This strategy has allowed the company to benefit from the broader adoption of AI across enterprises, regardless of which company ultimately builds the dominant model.

Palantir reported 93% year-over-year revenue growth in the second quarter, outpacing Nvidia Corp.'s (NASDAQ:NVDA) 85% revenue growth. Over a longer period, Palantir has expanded from a $533 million quarterly business in the second quarter of 2023 to $1.94 billion in the latest quarter.

The company's business model also looks very different from much of the AI industry, with $2.1 billion in operating cash flow during the first half of 2026 while spending just $22 million on capital expenditures, or investments in long-term assets such as offices, equipment and infrastructure.