could paler software end up being used by Elon and PC in the department of government efficiency well as you'll see in this video Alex carp fully supports their mission and to me it sounds like paler is going to be the perfect use case for them so the department of government efficiency is a new Department in the United States government under Trump that's aiming to streamline Federal operations by reducing bureaucracy cutting costs and eliminating redundancies the initiative is focused on identifying inefficiencies in government processes and finding innovative solutions to improve performance a key aspect of their
mission is to significantly reduce federal spending with Elon Musk suggesting potential cuts of up to $2 trillion over time and palter software seems like the perfect match for this for a few reasons the first being that musk already has a relationship with one of the founders of paler Peter teal as they both worked on PayPal together in the early days also paner of course already has a long history with the US government so integrating Gotham and AIP into Elon and B's Department shouldn't be an issue and lastly this kind of work is what paler was
designed to do analyze patterns in data which could easily show where redundancies and efficiencies in government spending are occurring so regardless of your own personal politics and beliefs on this this is a great thing for Palante here so let's get into this Alex carp interview and see exactly what he has to say about all of this joining me now on a fox business exclusive is a man leading it all paler CEO Alex karp I I got to ask you about the stock it has been such a wild ride you joined the S&P in September but
even before that people who understood the business jumped in and said we believe in it uh I mean that's got to feel really really good almost I guess a little bit like the world has woken up to something you already knew and quite frankly we already knew because you've been coming for about three years well you seem to know it early uh one of the few people who invited me on when I was a pariah uh which was about 18 years of our 20 year exist um yeah look you know things are good at pal
here we said um we said that you know the world is moving to software first which no one believed we said the way to build products is the way we did it which no one believed we said that you had to go back to what's now called kind of first principles what an Enterprise should do not what an Enterprise thinks it should do uh we believed in meritocracy and hiring the best people we believe America is a great country and our our enemy should suffer and we built products around those ideas and uh you know
there are a lot of people who didn't believe some who did and those that did were were well rewarded and we're kind of nose to the grindstone now we're you know very focused on the US um us is doing very very well for us and I think in general uh and it's it's a good time it's a great time a paler and maybe not so great for our doubters uh you know people who didn't want to listen to proclamations of obvious truth like you know an Enterprise should work uh are this nation is great uh
we have the best people and have the best products and uh and we built these products that are basic Ally were built years before people thought were irrelevant the most relevant one of now is is how do you manage large language models in AI so that you can actually extract value so that and the value is quantifiable either on the battlefield to bring solders home uh kill our enemies or in commercial to change margins reduce dwell time uh make your reinvent your business and one last point one of the most important things people do not
understand about AI is they understand roughly kind of how it could work of course they also have noticed that many AI companies or you know the large language modle own basically Le of science project but what the the the purpose of what you can do a with AI is you can do exactly what we did at paler which is build your institution the way it ought to be built a country ought to have a border a military ought to be efficient in both how it spends and how it kills and how it protects a Enterprise
that's in manufacturing should be able to control the supply chain should be able to control the workforce should be able to manage people who are smart but not technical technical but maybe don't have business Acumen those kind of things can be managed bringing an institution back to what it ought to be is the single purpose of what paler does and we're now able to do it which is why our Enterprise our Enterprise our Enterprise business in the US is just very very I me it's unbelievable total commercial sales in the third quarter Rose what 27%
to 37 million do you well the most important St are you trending the same or even better this quarter well obviously I can't can't talk about well unless you want me walking out of here in shackles I'm already I'm already I'm already pushing the limits but uh um yeah no I mean look the us our us business grew 44% last quarter 44% with a latent basic non-existent Salesforce with me as a front man offending half of America or actually the other half loves us I mean the people that like believe in truth and Justice and
meritocracy and having a border um uh and um at but sticking to our guns and we've stuck to our guns and the most important part of our business that's commercial and government is growing at a very and then there's this uh for people aren't in business there's a there's a rule that's basically like a diagnostic of health and it's called the rule of 40 and that rule of 40 I think we have the highest in the world 68 which means while you're sitting there one of the biggest trends that we've had to fight against is
the experts are only experts in this country at being wrong their expertise is I'm wrong and they're not even consistently wrong and so when it comes to paler it's like oh they're a services company oh you of course you have to build software so that it is uh it is a parasitic energy on an Enterprise instead of that it actually is aligned with the Enterprise and you know so that we are the the actual results Force those experts to say what the f is going on here it's like I can see their teeth being spat
out against the window well isn't that what Elon and V ramaswami are doing right now they're looking at government spending government inefficiency I mean you just talked about making commercial operations more efficient government operations more efficient have you talked to Elon Musk or VC about look without going into all paler we want to support the US government we want to support them I completely support the mission and I don't and again there's two parts of the mission making getting out waste figuring out what works investing in what works but there's also we need more we
have a dir of legitimacy in this culture almost all institutions that are in charge of measuring fixing doing things have low leg legitimacy whether they deserve it or not No One Believes when the ICC says something no one we we believe they're anti-semitic we believe that the doctor is politicized we believe our universities aren't teaching anything valuable we we don't trust that and neither side trusts and the idea that like blue is right or whatever No One Believes it anymore so we need transparency as the first step to reinvigorating legitimacy in this culture and I
wholeheartedly support what they're doing and God knows you could not have a better person than Elon doing it what if they come to you and they say all those programs that you're doing for the defense department we're cutting back the defense department well I look I you said all those things you're do like they're a I have I have enormous faith in both of them to figure out what's working and paler exists to serve this nation and I I mean we need to know what's working and what's not and I think that's great for the
nation and probably pretty good for paner too you know software software especially software that's productized is enormously efficient the underlying economics of software is both sides get more I build a product no one else can build I sell it to you at a fraction of the cost of building it I'm happy because I can sell that product everywhere you're happy because you could never build that even and honestly if you had a billion dollars you couldn't build it but you might think you're going to get a billion dollars and build it and of course that
doesn't work efficiency will not only make everything cheaper transparency will not every only be cheaper it will be the output will be better and again the primary basis of the US economy right now is Tech the primary lesson of tech is you you get the right people and you spend less and you get massive output and so like all these things that are likely to happen by looking at transparency are they're going to lead to increases in transparency and by the way increases increases in lethality the AI piece of all of this has enhanced so
much certainly the work that you have helped the ukrainians do and the israelies do on the battlefield but in the past you guys have been very clear it's it's on your website that you say we believe in augmenting human intelligence not replacing it but considering how far AI has come in just a short time do you think that it deserves a little more latitude uh beyond the well there's a lot of super interesting questions like for example on the battlefield now peer-to-peer adversaries that when if you're defending against their missiles you're going to not have
time to go back to the human but there's ways in which you can use software to code ethics into the program so that you get the data feed comes in from large language models and other AI systems the large language models are not precise enough and the the other systems may be precise but they're not ethical and you can have the decision feed into the software and the ethics human ethics can be encoded but yeah we're entering a completely different world and part of the reason we're entering a completely different world is we have we
have pretty lethal and very competent adversaries is it too early to ask if you guys have considered Aid driven peacekeeping or conflict resolution software the primary way to create peace in this world is to scare our adversaries when they wake up when they go to bed while they're seeing their mistress whatever they're doing they're scared if you want to have peace in the world that's how you do it and that's that is our peaceg giving offering this Christmas season to our adversaries we're going to help this government be more transparent work with partnership in America
and our goal is everyone who does not like America does not like what we stand for does not like the the the the the West thinks we're useful idiots is going to be scared and uncomfortable more tomorrow than today well uh that is a nice big bow around a Christmas gift that is our Christmas present happy marry seasons whatever you celebrate please you know you know and to all supporters of paler merry Christmas and a happy happy New Years and to all people who've hated on us enjoy your call God Alex never a dull moment
with you thank you very much for joining us don't get up oh sorry you hated it so much you're going to run away all right Alex C from paler
