AI Data Center Shares Set to Surpass Palantir's Value by 2030 Prediction
In the rapidly expanding world of artificial intelligence (AI), two companies stand out as key players: Palantir Technologies and CoreWeave. Both companies have carved out distinct niches within the AI ecosystem, with Palantir focusing on data analytics and integration software, and CoreWeave specializing in high-performance computing (HPC) and AI cloud infrastructure.
Palantir, originally founded to serve government agencies, has seen significant commercial adoption. Its flagship platforms, Foundry and Gotham, are used across various sectors to integrate and analyze complex datasets, empowering organizations to make data-driven decisions. A substantial portion of Palantir's revenue comes from long-term government contracts, providing stability and credibility. However, the company does not operate data centers or provide cloud infrastructure; its value proposition lies in proprietary software for data integration, analytics, and decision-making.
On the other hand, CoreWeave is a cloud infrastructure provider built from the ground up for AI. Its infrastructure is purpose-designed to deliver rapid deployment of cutting-edge hardware, often partnering closely with Nvidia to gain early access to new technologies. CoreWeave's pay-as-you-go model appeals to enterprises looking for cost-effective, scalable AI compute. The company's revenue growth has been explosive, with a 420% increase in Q1 2025 and a 550% jump in adjusted operating income year-over-year.
CoreWeave's growth is tied to the surging demand for AI compute power. Its stock surged 300% in early 2025, outperforming even Nvidia and Palantir during that period. The company's close ties to Nvidia, vertical integration strategy, and focus on operational efficiency suggest it is positioning itself as a backbone for the next generation of AI applications.
Palantir's breakout moment occurred in April 2023 with the release of its Artificial Intelligence Platform (AIP). AIP helps large, complex businesses build ontologies, detailed visualizations of various aspects of a business, enabling them to make sense of their data in a more intuitive way. The use of AIP has contributed to a surge in Palantir's customer count.
However, Palantir's actual growth may catch up with the overzealous sentiment surrounding the company, potentially resulting in a sell-off by growth investors. Some analysts think a large-scale valuation normalization is in store for Palantir due to its high valuation multiples. Wall Street's consensus revenue estimates for CoreWeave are on pace to surpass Palantir's revenue this year, and analysts expect CoreWeave's revenue to rise by more than threefold and transition to profitability within two years.
Over the next five years, CoreWeave appears poised for outsized growth as AI infrastructure becomes a critical bottleneck. Its vertical integration, performance leadership, and explosive financial metrics suggest it could become a dominant force, potentially surpassing even Palantir in market capitalization by 2028 if current trends continue. However, this trajectory depends on continued AI adoption, successful integration of acquisitions, and the ability to maintain technological edge over hyperscalers.
Palantir, while not directly providing AI infrastructure, will likely see steady, if less spectacular, growth as enterprises and governments further embrace AI-driven decision-making. Its software-first approach gives it flexibility and high margins but may limit its ability to capture the full value of the AI infrastructure stack. Its government business provides a defensive moat, but commercial expansion will be key to maintaining growth rates.
In conclusion, CoreWeave is emerging as a critical infrastructure player in the AI boom, with superior growth rates and a focus on owning the full stack from hardware to cloud services. Palantir remains a leading force in AI software, especially for complex data integration, but does not control the underlying infrastructure and may grow at a more measured pace. Both companies are well-positioned for the AI era, but CoreWeave’s infrastructure-centric model and vertical integration could give it an edge in capturing the next phase of AI-driven growth.
- The artificial intelligence (AI) sector is flourishing, and two prominent companies, Palantir Technologies and CoreWeave, embody its expansion, particularly in data analytics, integration software, high-performance computing (HPC), and AI cloud infrastructure.
- Palantir's finance comes predominantly from long-term government contracts, providing stability and credibility, but its revenue doesn't include cloud infrastructure or data centers, only its proprietary software for data integration, analytics, and decision-making.
- Contrastingly, CoreWeave's growth is directly tied to the surge in demand for AI compute power, and its revenue soared in Q1 2025, with a 420% increase and a 550% jump in adjusted operating income year-over-year - a testament to its dedicated cloud infrastructure designed specifically for AI.
- As AI-driven data-and-cloud-computing and technology like artificial intelligence continue to dominate the business landscape, CoreWeave's focus on vertical integration, performance leadership, and demanding financial metrics could catapult it over Palantir in market capitalization by 2028, given current trends, if it successfully navigates AI adoption, acquisition integration, and maintaining a technological edge over hyperscalers.
