Palantir Says SaaS Is Dead, Pushes AI-Built Custom Software for $320 Billion Growth Story
Updated
Updated · Forbes · May 16
Palantir Says SaaS Is Dead, Pushes AI-Built Custom Software for $320 Billion Growth Story
1 articles · Updated · Forbes · May 16
46% of Palantir’s revenue now comes from commercial clients, and the company says that traction supports a shift away from standard SaaS toward custom software built for each customer.
Forward-deployed engineers use Palantir’s platform on top of systems like SAP and Oracle, with AI coding tools such as Claude and Codex speeding development of tailored supply-chain workflows.
Palantir argues rigid ERP and SCM products force companies into spreadsheets and manual workarounds, while also eroding competitive differentiation by giving similar capabilities to rivals.
Its Ontology layer acts as an operational abstraction layer or digital twin, linking data, logic, permissions and actions so AI agents can automate tasks such as purchase-order parsing, inventory checks and scheduling.
The pitch still faces doubts over whether generative AI can produce code and optimization agents that scale for complex warehouses, even as Palantir says some manufacturing workflows reached broad deployment within one quarter.
Is Palantir's bespoke AI model the end of SaaS, or just a new form of elite consulting?
As AI giants copy its playbook, can Palantir's high-touch model truly scale and win?
With AI agents now running business workflows, what is the ultimate value of human expertise?