Jensen Huang Predicts Agentic AI as Multitrillion-Dollar Market - This Palantir Rival Could Dominate at One-Third the Price

NVIDIA CEO Jensen Huang drops trillion-dollar prediction: agentic AI represents the next seismic shift in technology markets.

While Wall Street obsesses over Palantir's valuations, a stealth competitor emerges with identical capabilities at a fraction of the cost.

The Price Advantage

Trading at just one-third of Palantir's valuation, this unnamed rival delivers comparable AI infrastructure without the premium branding—because apparently in tech, you either pay for the logo or the actual technology.

Market Disruption Underway

Agentic AI systems automate complex decision-making chains, potentially transforming entire industries from healthcare to defense contracting. Huang's projection suggests we're looking at the next platform shift—bigger than cloud, bigger than mobile.

Finance professionals remain skeptical as always, questioning whether this is genuine innovation or just another buzzword to justify ridiculous valuations in an already frothy market.

What is Databricks?

Large enterprises typically rely on a patchwork of specialized tools to run their operation. Sales and marketing live in customer relationship management (CRM) platforms like. Financial ledgers are often managed in, while human resources data resides in systems such as.

While each tool serves a purpose, a major pain point persists: The data is fragmented and siloed. In tech jargon, this is known as "unstructured data."

This is precisely where Databricks steps in. The company's flagship Lakehouse platform unifies these disparate data points into a single, governed source. Once this information is consolidated and structured, organizations can extract insights far more efficiently, accurately, and at scale -- turning raw data into actionable intelligence.

The value proposition is already resonating. More than 15,000 businesses use Databricks in some capacity -- including over 60% of the Fortune 500.

Image source: Getty Images.

What is agentic AI?

Traditional large language models (LLMs) like ChatGPT, Gemini, Perplexity, and Claude are designed to generate responses based on human input. Put simply, as powerful as they've become, they are still reactive tools -- waiting for a prompt before producing an output.

Agentic AI represents a transformational leap beyond reactive models. Instead of passively responding to queries, AI agents can take autonomous, proactive steps to analyze a problem, formulate an execution plan, and carry it out with minimal oversight.

Consider a retail example. An AI agent could identify pricing discrepancies with competitors or uncover deeper consumer shopping patterns, then simulate scenarios to recommend a targeted sales campaign. It can even model how consumers might react and automatically send a polished proposal to a decision Maker -- all without the micromanagement of a supervisor.

In essence, AI agents are not generic chatbots. Instead, they function more like digital operators -- capable of spotting opportunities, streamlining workflows, and executing on complex tasks. For large corporations, the efficiency gains from these tools could be game-changing.

Is Databricks closing the gap with Palantir?

As a private company, Databricks is not obligated to disclose detailed financials or key performance indicators. However, once a start-up begins to reach the scale of its public peers, revenue estimates often surface.

According to reports, Databricks is generating an annual recurring revenue (ARR) run rate of roughly $3.7 billion. For comparison, the midpoint of Palantir's 2025 financial guidance is $4.1 billion in annual sales.

While ARR run rate and forward sales guidance are not perfectly equivalent metrics, they can be used directionally to illustrate scale. On this basis, Databricks and Palantir appear to be operating in a similar revenue ballpark.

So, what's fueling the valuation gap between Palantir and Databricks?

Palantir's premium stems from consistent profitability and its established platforms -- Gotham and Foundry -- serving as AI backbones for large businesses and government agencies alike.

Databricks aims to close the valuation gap by evolving into a comprehensive, end-to-end operating system unifying enterprise data architectures. Its aggressive push into agentic AI could make it a major winner as AI investment migrates downstream -- shifting from infrastructure to software applications.

For now, gaining exposure to Databricks is limited to accredited investors or through secondary offerings. However, its strategic advancements in agentic AI positions Databricks as a compelling business to monitor for a potential initial public offering (IPO) down the road -- possibly at a steep discount to Palantir.