Palantir’s Karp bashes token-based AI model as ‘completely wrong’
palantir CEO Alex Karp on Wednesday criticized the token model used by US artificial intelligence labs Anthropic and OpenAI for rapidly increasing costs.
“I’m not throwing shade at them, but something went completely wrong,” he told CNBC’s “Squawk Box.” “The basic view among businesses in this country is I’m going to rest and waste my time on tokens.”
As AI costs rise and new models become more expensive than previous versions, businesses are shifting away from the so-called tokenmaxxing mindset in favor of return on investment.
This setup is encouraging some businesses to adopt deficit-heavy models that can perform similar tasks at a fraction of the price. Chinese models are also ramping up capabilities, raising concerns that an AI rival could soon catch up with U.S. border labs.
Shares of the artificial intelligence software company rose 9% on Wednesday.
Karp told CNBC that the industry should not underestimate the pace of progress China is making in creating AI models.
In this environment, many businesses are shifting from using broad AI models to building and training their own, more efficient proprietary tools.
Earlier this week, Palantir announced it was expanding its partnership with . Nvidia It will use the chipmaking giant’s artificial intelligence tools to create custom models for US government agencies.
Karp sees vulnerability-heavy models as a potential solution for CEOs frustrated with AI labs.
Ahead of Karp’s interview, Palantir released a 9-point manifesto on the importance of “AI sovereignty” on Tuesday. social media platform. The post criticized tokenmaxxing as a business model and encouraged companies to maintain ownership of their data.
“What aligns me with Nvidia, and I think what technical customers want, is that they have control over their calculations, their models, their data stacks and their alpha,” Karp said. “They want to know that the means of production belong to them. It is not transferred to someone else.”
— CNBC’s Seema Mody contributed to this story.
