Tune into a Palantir earnings call or financial filing, and you’re likely to hear a word that most people have never encountered: ontology. For CEO Alex Karp, it’s a favorite — one he uses frequently, not just in boardrooms but in public debates. The term has become central to Palantir’s messaging, with Karp even defending the company against short-sellers by calling their skepticism “batshit crazy” when they bet against Palantir based on its reliance on “chips and ontology.” The word gained wider attention earlier this week during a public exchange between Karp and renowned investor Michael Burry, whose hedge fund had taken a short position on Palantir. Burry responded on X, invoking the term twice in a single post: “A fundamental principle of any rigorous ontological/epistemological model — whether philosophical or in data science — is recognizing when your information set is insufficient for valid conclusions.” While the term may sound like a philosophical debate, in Palantir’s world, “ontology” has a very practical meaning. It refers to a core component of the company’s Foundry platform, launched in 2016, which helps organizations connect their digital data to the real world. This includes physical assets, products, orders, transactions, and more. In essence, an ontology creates a structured, unified model of a business’s operations, turning raw data into a living, actionable representation of the organization. Once established, this model allows Palantir’s tools to function at scale. For example, a retailer can use it to map its global supply chain and set up real-time alerts for stockouts. A utility company can predict equipment failures across thousands of miles of power lines. A pharmaceutical firm can securely store and manage sensitive health data, meeting strict compliance standards like HIPAA. According to Palantir, the Ontology “transforms your digital assets — including data, models, and processes — into a dynamic, actionable representation of the business for all users to leverage.” The company is now expanding the concept with its new Edge Ontology, which can run on mobile devices, enabling customers to build software for drones, robots, and other field-based systems. At a recent third-quarter earnings call, CTO Shyam Sankar highlighted the importance of the technology, stating, “Our advantage comes down to Ontology.” For Karp, a former law student and Ph.D. candidate in neoclassical social theory, the term is more than a buzzword — it’s a reflection of his deep interest in philosophy and how systems of knowledge shape reality. While the word’s original meaning in philosophy is about the nature of existence — questions like “What is real?” or “Do I exist?” — in Palantir’s context, it’s about creating order from chaos in complex enterprise environments. So when Karp says “ontology,” he’s not just dropping a fancy word — he’s describing the foundation of how Palantir helps organizations make sense of their data, drive decisions, and operate more efficiently.