Microsoft CEO Satya Nadella Praises Palantir's FDE Model As 'Fantastic'—Insiders Say It's Not Consulting, It Builds 'The Product Customers Need'

Microsoft Corp. MSFT CEO Satya Nadella called Palantir Technologies Inc.‘s PLTR Forward Deployed Engineer model “fantastic” at a Y Combinator event, prompting industry debate about the data analytics company’s unique approach to product development.

What Happened: Chad Wahlquist, Forward Deployed Architect at Palantir, responded to Nadella’s comments on X, rejecting misconceptions about the FDE model. “Many mistakenly believe the FDE model is just a new name for a change management consulting model. False,” Wahlquist wrote.

The FDE approach places engineers directly with customers to build products at the point of need rather than relying on traditional consulting methodologies.

“FDEs build the product customers need, when they need it, at the edge,” Wahlquist explained. “The feedback loop from FDEs experiencing customer pain at the edge and turning it into product allows us to cycle and build the right product much faster.”

This methodology differs significantly from traditional enterprise software sales cycles. Where companies like Salesforce Inc. CRM and Oracle Corp. ORCL rely on lengthy relationship-building processes, Palantir embeds technical experts directly with clients using its Foundry platform.

Y Combinator CEO Garry Tan, who worked at Palantir from 2005 to 2007, previously outlined how FDEs sit with clients like FBI agents investigating domestic terrorism, observing actual workflows. “Instead of the next meeting being reviewing 50 pages of sales documentation, it’s literally like ‘Okay we built it,'” Tan said on the Lightcone Podcast.

Why It Matters: The model’s effectiveness has attracted attention from major financial institutions. JPMorgan Chase & Co. CEO Jamie Dimon recalled his 2012 encounter with Palantir: “I remember sitting down with the Palantir people and going through this AI thing saying holy Christ this is this is unbelievable.”

JPMorgan subsequently established its own AI department and now invests $2 billion annually in artificial intelligence across 600 active use cases.

Palantir shares have surged over 492% in the past 12 months, reaching new all-time highs near $143. The company recently raised 2025 revenue guidance to $3.89-3.90 billion while projecting adjusted free cash flow between $1.6-1.8 billion. Recent catalysts include a $795 million Defense Department contract and commercial partnerships.

According to Benzinga’s Edge Stock Rankings, Palantir shows strong Short-, Medium-, and Long-Term Price Trends. Here’s how the stock performs across other key metrics.