We have covered nearly 200 use cases coming out of all these bootcamps, and we are just getting started. The core theory of value that has driven our product strategy for time eternal is data integration, that bringing new data into an operationally-relevant context to expand the complexity, nuance and surface area of decision making always produces value. AIP enables us to integrate so many types of new data, video conferences, incident response calls, Slack rooms, PDFs, images, video, audio, and exploit them through the power of LLMs and ontology. So much of what data defines a process is not actually in the system that runs that process, but instead in conversations, conference calls, videos of the factory floor, or images of a site. What’s in the enterprise process system is a lossy latent representation of this reality.
Our software always exploited that phenomenon that the truth is out there, not in your ERP system or that blessed application. With AIP, we are investing in multi-modal approaches to compound on this proven value driver and expand the addressable market of use cases within the enterprise. As I’ve said before with AI and LLMs, you can’t think your way through it. You have to get your hands dirty and work in anger to get use cases into production. In AIP, we have built a platform to deliver proof, not just proofs of concept, to our customers, and bootcamps are the way to flex that string. At AIPCon 3, we will have many customers on stage showing you their great work. Come taste the pudding. Turning to government, Palantir is experiencing its own Amazon.com-to-AWS moment, taking exquisite first-party technology that supports the largest scale defense tech player and making it available for third parties to build on and win, Gotham, Gaia, MetaConstellation, this is our software, less well-understood.
And now being commercialized is our software infrastructure, platforms like Apollo, the capabilities that we had to build over 20 years to enable hundreds of dev teams to independently release 2,500 products and services to nearly 1,000 customer environments, including about 100 air gapped environments delivering 90,000 upgrades a week. This infrastructure abstracts away supply chain security, environment heterogeneity, and infrastructure, so that developers can be operationally responsible for their services across it all so they can focus on delivering innovation to the war fighter. And that’s exactly why the Palantir government webservice’s offering is so compelling. $100 billion has been invested by venture capitalists into defense tech since 2021.
These companies want to compete on quality, not beating back bureaucracy. Government Web Services creates a capital and time efficient way to unlock market access for new entrants and incumbents alike. But even beyond defense tech companies, an extended set of these capabilities that we call Mission Manager are uniquely suited to delivering the capabilities that we have heard all government PMs asking for. Program offices want to pursue multi-vendor, big tent ecosystem acquisition strategies with government owned and managed interfaces. The typical way to pursue this is with a systems integrator where they are managing the integration with billable hours constrained by humans. At Palantir, we do this with software as a software integrator. We see a more significant market opportunity in Mission Manager and Government Web Services over the long term than C2, intel and data platforms alone.
We have already launched Mission Manager projects starting with the US Army, a customer whose needs and feedback have heavily shaped this offering. We continue to invest in relationships with the defense industrial base to help them bend metal more profitably and efficiently. In their earnings calls, America’s prime signalled that they’re pulling back from getting substantially burned on firm fixed price contracts. This is a giant step in the wrong direction for America. So, we want to lean in and help them optimize their supply chains, their production plans, quality, and overall delivery against these contracts that have enormous opportunity to generate margin for them. But we are also working aggressively with new entrants to start with Foundry as their production software from Day 0.
M-Day was yesterday. We have no time to waste to mobilize America’s industrial base to ramp production. Finally, our products could not be playing a more central role for real world events. Our AI-enabled platforms are being leveraged maximally to support key US government goals in the Middle East. We have surged support to Israel to enable the Israeli Defense Forces and intelligence services to leverage Gaia, Gotham Foundry, an AIP to tackle a growing list of use cases from tactical command and control, visual intelligence, forensics, readiness, and production. At the same time, great power competition with China remains top of mind as we continue to invest in moving more of Palantir’s mass west of the international date line. And we continue to support Ukraine’s efforts directly and through allies.
When the bat signal goes up, Palantir’s Gotham platform and its family of products have always answered the call. At the same time, monetization of these efforts will take time. The principal reason is that the DoD is at the very beginning of a long-term allocation shift from hardware to software. For example, the Army is spending a mere 0.015% of its budget on command and control software in fiscal year ’24. But as we confront crisis and conflict in three theaters, this is changing. Growth is being driven by the incredible dynamism of the US commercial market, and US government will follow. With that, I’ll hand it over to Dave to talk us through the financials.
Dave Glazer: Thanks, Shyam. We had an exceptionally strong fourth quarter, marked by our outperformance across revenue, profitability and cash flow. Revenue growth accelerated to 20% year-over-year in Q4 on the back of our US commercial business, which alone grew 70% year-over-year, a result driven by our momentum in AIP. Adjusted operating margin continued to expand to 34% in the fourth quarter, highlighting the strong unit economics of our business. We beat the high end of our guidance range on both revenue and adjusted operating margin, driving an 800 basis point sequential increase to our Rule of 40 score, from 46% in the third quarter to 54% in the fourth quarter. We also delivered our fifth consecutive quarter of GAAP profitability.
In 2023, we generated $210 million of GAAP net income, a $584 million increase from 2022. In the fourth quarter alone, we generated nearly $100 million in GAAP net income. We also delivered our fourth consecutive quarter of GAAP operating profit, generating a $120 million of GAAP operating income in 2023, a $281 million increase year-over-year. Our GAAP operating profit accelerated in each quarter of last year. And in the fourth quarter alone, GAAP operating income increased 65% sequentially to $66 million, our highest quarter ever of GAAP operating income. We generated over $300 million in adjusted free cash flow in the fourth quarter, representing a margin of 50% and over $730 million of adjusted free cash flow for the full year. Turning to our global top-line results.
