Y Combinator CEO Garry Tan once revealed how he once turned down a life-changing offer from billionaire investor Peter Thiel — a decision that, by his own estimate, cost him about $200 million in Palantir Technologies (NASDAQ:PLTR) equity.
The Dinner With Peter Thiel That Changed Everything
Tan, now one of the tech world's most influential venture capitalists, recalled in a 2019 video how the moment unfolded shortly after his 2003 graduation.
At the time, he was a young engineer working at Microsoft Corporation (NASDAQ:MSFT) when friends invited him to dinner with Thiel, who was then launching a new data analytics startup — Palantir.
Thiel, best known for his early $500,000 Facebook investment, urged Tan to quit his job immediately and join Palantir's founding team.
When Tan hesitated, saying he earned $72,000 a year, Thiel pulled out his checkbook and offered to cover his salary personally.
"He said, ‘Cash this check, quit your job. This is a zero-risk opportunity for you,'" Tan recalled. "I said, ‘Thank you very much, Mr. Thiel, but I might get promoted to Level 60 next year.' Big mistake."
That decision, he said, ultimately cost him at least $200 million in equity.
How Tan's Missed Opportunity Became A Career Lesson
Although Tan eventually joined Palantir later as employee number ten — helping build one of its major product teams — he missed out on the early-stage equity windfall.
"It still worked out," he said, "but that's a story you should keep in mind when you think about where you want to work."
He also revealed that he had turned down a Google, now under Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL), interview in 2004, admitting that at the time it wasn't clear that the tech giant was going to make money.
"In 2019, it’s hard to believe any other company other than Google is going to make money," he stated.
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Palantir's Massive Rise Since Then
Today, Palantir has a market cap of more than $425 billion and continues to outperform expectations.
In its second quarter, the company reported $1.004 billion in revenue, up 48% year-over-year.
Analysts like Dan Ives have called it the "Messi of AI," while predicting that Palantir could reach a $1 trillion valuation within three years.
According to Benzinga's Edge Stock Rankings, Palantir scores strongly in Momentum and Growth, reflecting a positive price trend across short, medium and long-term periods. Click here for a detailed breakdown of the stock's performance, along with comparisons to its peers and competitors.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
