Palantir’s Alex Karp says AI industry has ‘gone completely wrong’ with tokens; slams OpenAI, Anthropic

Palantir CEO Alex Karp on Wednesday slammed AI companies like OpenAI and Anthropic for using token models due to rising costs.

In an interview on CNBC“I’m not throwing shade at them, but something’s gone completely wrong,” said Karp of Squak Box, adding, “The basic sentiment among businesses in this country is I’m going to waste and waste my time on tokens.”

Karp’s comments come at a time when the costs of artificial intelligence models continue to rise, with new models becoming more expensive than previous models. Amid this, companies are moving away from tokenmaxxing models (tokenmaxxing is the process of maximizing the consumption of AI tokens and evaluating the same high volume as a metric for calculating the productivity of an AI model) towards a more return-on-investment approach.

This setup is now leading companies to adopt vulnerability-heavy models so they can perform similar tasks at significantly lower costs. Models produced in China are also increasing their capabilities and could soon pose serious challenges for US laboratories.

In Karp’s interview CNBC, He warned that the AI ​​industry should not underestimate the pace of advancement of Chinese AI models.

Karp also said technical customers want full control over what they calculate and raised questions about who owns the data fed into AI models.

This week, Palantir struck a deal with Nvidia to use Nvidia’s AI tools to create custom models that can be used by agencies of the United States government.

Regarding his company’s relationship with Nvidia, Karp said: “What tech customers want is control over their computers, their models, their data stacks and their alpha. They want to know that they own the means of production and they’re not handed over to someone else.”

“Who owns the data? Is the prompts secure? Is it passed on to you?” he added.

“If it was this valuable and I could make you a billion dollars, wouldn’t I say I’m going to make you a billion dollars and I want 30%? If it’s this valuable, why are they charging for the token?” Karp asked about artificial intelligence companies.

Before Karp’s interview on CNBC, Palantir released a nine-point statement about the company’s beliefs regarding AI dominance.

Here are the nine points:

1. Your AI dominance determines the future of your organization.

2. Data storage is your treasure. Transfer at your own risk.

3. Tokenmaxxing hijacks your value orientation and diminishes your organizational courage and intelligence.

4. Controlling your weight is controlling your destiny.

5. There is no conflict between dominance and alpha.

6. What your enemy wants is the politicization of technical issues related to sovereignty.

7. True expertise is existential.

8. Learn from winning or consistently successful organizations.

9. Only listen to institutions, countries and people who have been proven right.