Palantir, a data-mining company, invested $25 million into Faraday Future just before the electric vehicle startup became publicly traded in July. According to an unreported Securities and Exchange Commission document (SEC) filed late last week.
According to Palantirs' most recent SEC filings, Faraday Future also signed a contract to use Palantirs' software. Although Faraday Future did not disclose the amount they were paying, Palantirs filed that it will be for between four and six year. Both companies representatives did not respond immediately to requests for comment.
Palantir claims its software is designed to be a central operating platform for companies that have to sort through large amounts of data. Palantir's software has been used by the US Customs and Border Protection agency to track immigrants under the Trump administration. It also serves as a central operating system for police departments across the country that have used Palantirs controversial predictive-policing software.
Palantir recently made investments in several startups and also sold software to them.
Palantirs' investment was part the so-called Private Investment in Public Equity(PIPE) portion in the merger with a special purpose acquire company (SPAC), which made Faraday Future publicly. Essentially, PIPEs are a round of fundraising that occurs concurrently with many SPAC mergers. Faraday Future was able to raise a total amount of $795 million through its PIPE. This included other investors such as Geely, China's largest private automaker.
Palantir's participation in the PIPE represents just one of a series of investments that the company made in startups, which are or were in the process of merging into SPACs. Palantir followed up on its investment in some cases with a deal for the sale of its software services to that company, as Eric Newcomer first reported in July. Newcomer reports that Palantir is paying $42 million for its software. This follows a $21million investment by the data-mining firm.
Faraday Futures electric cars will produce an amazing amount of data, at the very least, once they are built. The first company vehicle, the FF 91 SUV is not due to be in production until July 2022. This delay has been caused by the company's struggles over the years. The electric SUV will come with sensors and cameras that can power an advanced driver assist system and eventually, perhaps, full autonomy.
The FF 91's interior will become a more data-generation machine. Every seat has a camera that can perform facial recognition. This will allow drivers and passengers to quickly access their preferences, such as their personal app and media libraries, preferred seating positions, climate settings, and many other details.
