Salesforce (CRM) CEO Marc Benioff has made it clear he’s watching Palantir (PLTR). In an interview with CNBC this week at Goldman Sachs’ (GS) Communacopia+Technology conference, Benioff described himself as “inspired” by Palantir’s rise, but he didn’t hold back on its costs.
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“Oh my gosh. I am so inspired by that company,” he said. “Not just because they have 100 times multiple on their revenue, which I would love to have too. Maybe it’ll have 1000 times on their revenue soon.”
Then came the jab. “Palantir’s prices are the most expensive enterprise software I’ve ever seen,” he added, joking that maybe Salesforce itself is “not charging enough.”
Benioff’s words capture two realities at once. He admires Palantir’s explosive growth but is also frustrated that Salesforce, despite being bigger and more established, is lagging in valuation and market hype.
Why Palantir’s Growth Is Catching Eyes
Palantir may still be a smaller player by sales, but its numbers look explosive compared to Salesforce. Palantir is growing revenue by 48% year-over-year, while Salesforce is growing at just 10%.
This difference has not gone unnoticed on Wall Street. Palantir’s market cap now sits at around $406 billion, compared to Salesforce’s $231 billion. It’s a remarkable gap when you consider that Salesforce brought in more than $10 billion in revenue last quarter, while Palantir remains a fraction of that.
The disconnect comes down to growth expectations. Investors are paying up for Palantir’s future, even if its present looks small next to Salesforce. Retail traders have piled into Palantir, making it one of the most traded names on Robinhood (HOOD). Salesforce, by contrast, has seen its stock fall 27% this year, the weakest performance among large-cap tech.
Why Pricing Is Key in Enterprise Software
Enterprise software isn’t like consumer apps. Companies make long-term contracts worth millions, sometimes billions, and the cost structure can decide whether a firm wins or loses deals.
Benioff’s critique that Palantir charges “the most expensive enterprise software I’ve ever seen” highlights a key question. Are Palantir’s prices sustainable, or are customers simply willing to pay a premium because the technology feels irreplaceable?
Palantir CEO Alex Karp has defended the model, saying the company is “focused on value creation” and only asks to be “modestly compensated” for that value. But Salesforce is playing a different game, selling broad, lower-cost tools for sales, service, and marketing teams.
The price debate is important because it affects how much each company can scale. Salesforce may attract more clients with lower costs, but Palantir’s premium approach could mean fewer customers, but with fatter margins.
Is it a Salesforce vs. Palantir Competition?
The tension plays out in real deals. Benioff made sure to highlight that Salesforce recently beat Palantir for a U.S. Army contract. These government and defense deals are high stakes, often lasting years and involving billions.
Palantir, founded in 2003, built its name on government contracts, especially in defense and intelligence. Salesforce, founded four years earlier, grew up in the corporate world. It became the go-to platform for sales and customer management. Today, the two firms collide in both markets.
Benioff’s public digs suggest he sees Palantir as a company setting the tone for how investors value growth versus scale.
Overall, Palantir is winning the narrative war, convincing investors it’s the AI software company of the future, even if its revenues don’t justify its massive valuation today. Salesforce, meanwhile, has size, steady income, and a proven track record, but slower growth and less investor hype.
Benioff may be joking when he says “maybe I’m not charging enough,” but the subtext is serious. Salesforce risks being seen as yesterday’s story, while Palantir is trading like tomorrow’s winner. The question is whether that perception holds, or whether Salesforce can prove its own AI ambitions will pay off.
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