Invest Like the Best with Patrick O'Shaughnessy
· Shyam Sankar
[00:00:00] S1: There are always degrees of these things, but the first order issue I'd say – is it hard because you want to exist in a business that isn't painful. There's a great Greg LeMond quote who's a world championship cyclist. And someone was asking him about a championship performance, and he almost looked incredulous, and he was like, "You know, it doesn't get easier. You just go faster." And so what do you think a championship performance feels like? It feels shitty. It's really painful. It's really hard. And your ability to win is basically, can you survive more pain than your competitors can? So there's this weird phenomenon where if you're doing something world-class, it's really painful. Also, if you're totally failing, it's really painful. So then having some discrimination to know which of these two worlds am I in. And the worst world to be in is where you have no signals, you're just plodding along. But it's managed decline, is really what's happening. So then, is the pain we're experiencing generating results or not, And orienting people to that. The other part I'd say is, you can't move the whole company at once. Even a company as small as ours – there's only 4,500 people – every change is itself a mini insurgency inside the company. I would think about it like you're campaigning. Who are the people who already believe what you're saying? How do you add incremental weight behind what they're doing? How do you help them succeed more? Are you trying to generate momentum or are you trying to deal with the drag of bringing everyone along? My experience has been momentum is the thing that aligns the whole company. And so you should be waking up every day in the midst of these pivots, just working on momentum. People will catch up.
· Patrick O'Shaughnessy
[00:00:00] S0: What are your favorite ways to do that? This is like a communication question. Palantir gets so much attention now from public markets and everywhere. It's one of these exciting places. So there's more scrutiny on the company, its choices, what it does. You don't get to operate in obscurity like you did in the first batch of time. What are your favorite methods for that internally, very tactically?
· Shyam Sankar
[00:00:00] S1: Celebrating the heretics, celebrating the successes, creating venues where everyone has some ability to revolt. Every employee's first AMA with me, I end it by telling them to tell me to fuck off to my face. It's very uncomfortable for them, actually. They're almost not sure if I'm entrapping them into something that's gonna get them in trouble. But how can you say you have a flat culture if you can't tell the boss to fuck off? It's a small gesture, but it's trying to set the conditions and understand like, hey, we are a company that's committed to taking the very best idea regardless of where it comes from, and then putting all of our wood behind those arrows. And most of those ideas are usually some variants from what we're currently doing, otherwise it'd already be the current best idea. You gotta be careful how much you institutionalize, but we've institutionalized – minimally two times a year, we have these weeks of revolt where people are allowed to go build whatever they want. We're almost, I like want the people to have a chip on their shoulder. The whole point is to prove that we've been fucking up and doing it wrong, and inspire us with the thing that you've built. And then if you have a culture that is just profoundly truth-seeking, and the truth is so charismatic that now that I've seen it, I can't unsee it. This is obviously the right answer, let's go. It's not as hard as it may sound to move and pivot on these things.
· Patrick O'Shaughnessy
[00:00:00] S0: The AI time is so remarkable. We all have to deal with this new thing at the same time. Probably like any crisis, there's both opportunity and danger bundled in the coming of AI for Palantir 2. How do you receive this new technology and make sure that you get better because of it and don't get disrupted because of it? You were a disruptor with this enterprise ontology concept killing the old rigid database systems. You had an innovation. Now, if I wanted to create a Palantir competitor, it would be much easier just by virtue of the technology that's available.
· Shyam Sankar
[00:00:00] S1: The only way you can do that is by disrupting yourself. To the point of institutionalizing rebellion and holding that up, it is the perpetual motor of self-disruption. I think about it as the most valuable thing is not to defend a moat or something, but it's to go charge after the new opportunity. One of the things I think is unique about AI is how much it plays to the beginner's mind. Obviously, the first adopters of AI for us were the youngest hires. To the point of generate momentum, I didn't really bother with the people who were cynical or indismissive of it. I let the young people generate just overwhelming productivity that almost in some sense humiliated or inspired other people to get on board. And there's a similar phenomenon. There was like a weird, almost like out-of-body experience for someone who's been there 20 years or someone who had been in Palantir three years is like, you know what? The best people are doing this are really the young people, by which he meant people who'd been there three months. And that recognition of – so here we have someone who's not a gatekeeper. He's actually trying to find the insurgents and empower them and place them in places where they can go forth and do badass shit. And we can all learn together by doing that. It's been actually really fun with the rate of transformation for AI and what it's really enabled to be possible.
· Patrick O'Shaughnessy
[00:00:00] S0: Everyone's trying to answer this question of, okay, we have AI. Where's the value going to get captured in the whole stack or chain or however you want to think about it? What's your answer to that question?