[gwern]

> Businesses are also shifting their focus away from “AI-as-a-service” vendors who promise to carry out tasks straight out of the box, like magic. Instead, they are spending more money on data-preparation software, according to Brendan Burke, a senior analyst at PitchBook. He says that pure-play AI companies like Palantir Technologies Inc. and C3.ai Inc. “have achieved less-than-outstanding outcomes,” while data science companies like Databricks Inc. “are achieving higher valuations and superior outcomes.”

Palantir is now a "pure-play AI company"? (And, for that matter, a market cap of $50b is 'less than outstanding'?)

[gipp]

> And, for that matter, a market cap of $50b is 'less than outstanding'?

Less than outstanding outcomes

Market cap is their outcome, not their clients' outcomes. The two are decidedly different things, especially in our weird distorted market.

[gwern]

Burke specifies "valuations" as well as outcomes, so the observation stands. (Not that Palantir is any kind of monopoly... If you will recall, the usual criticism is that it's just a consulting shop with zero moat or monopoly.)