Alex Karp unleashes on OpenAI and Anthropic as AI industry faces growing enterprise backlash
16 Sources
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Palantir's Karp bashes OpenAI, Anthropic token model: 'Something has gone completely wrong'
Palantir CEO Alex Karp says 'something has gone completely wrong' with how AI is sold Palantir CEO Alex Karp on Wednesday criticized the token model used by U.S. artificial intelligence labs Anthropic and OpenAI as costs skyrocket. "I'm not throwing shade at them, but something has gone
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Opinion | Maybe Anthropic and OpenAI Are Not the Future of Artificial Intelligence
You're reading the David Wallace-Wells newsletter. The best-selling science writer and essayist explores climate change, technology, the future of the planet and how we live on it. Get it sent to your inbox. Last week, the Palantir chief executive Alex Karp made one of his more remarkable
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Palantir CEO Calls Drugs 'The One Thing I Don't Do' in Wildly Unhinged Interview
Palantir CEO Alex Karp gave an extremely high-energy interview to CNBC's "Squawk Box" on Wednesday, with his arms flailing as he ranted about everything from politics to Israel to AI. He also referred to past public appearances where people have speculated that he was on drugs. Karp started the
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Karp unleashes on frontier AI labs
The big picture: Karp put his finger on a trend: U.S. companies are increasingly turning to cheaper Chinese AI models just as the Trump administration is blocking access to some of the best American AI tools -- a double whammy for domestic AI labs. What they're saying: Karp said CEOs are telling
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'Something has gone completely wrong': Palantir CEO Alex Karp slams OpenAI, says AI industry is "effing insane"
Palantir CEO Alex Karp has hit out at the state of the AI industry, saying it was "effing insane" that the technology is being used in areas such as military and national security. In a heated interview with CNBC Squawk Box, the controversial billionaire also hit out at top AI firms such as
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"Televised Nervous Breakdown": CEO of Palantir Suffers a Bit of a Meltdown During Live Interview
Can't-miss innovations from the bleeding edge of science and tech Everyone has had a bad day at work, but most of us are lucky enough that ours weren't broadcast with a chyron live on television. On a live interview with CNBC's infamously churlish segment "Squawk Box," Palantir CEO Alex Karp
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When the sovereign AI diagnosis goes prime time
Palantir Technologies Inc. Chief Executive Alex Karp went on CNBC this week and delivered what one outlet generously called a "televised nervous breakdown." He called the artificial intelligence industry "effing insane." Karp (pictured) also accused OpenAI Group PBC and Anthropic PBC of running a
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Tokenomics - the worldview according to Palantir as CEO Alex Karp lays into OpenAI and Anthropic's "effing insane" business models
Something has gone completely wrong! As the debate around tokenomics rumbles on, in a no holds barred diatribe, Palantir CEO Alex Karp has laid into the "effing insane" business model of the likes of Anthropic and OpenAI, which he accuses of ripping off American enterprises - and they're mad as
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Alex Karp, frontier models and the real fight for Enterprise AI
Alex Karp, frontier models and the real fight for Enterprise AI Palantir Technologies Inc. Chief Executive Alex Karp's recent broadside against the frontier model vendors put a knife to the throat of the central enterprise artificial intelligence debate. Karp's argument is that frontier model
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Open and shut source case: There's method in Palantir CEO Alex Karp's 'mad' outburst against Big AI overselling corporates
Palantir CEO Alex Karp has fiercely criticized the US AI industry, particularly OpenAI and Anthropic, for their token-based pricing and 'oversold' AI capabilities. This sparks a debate between closed and open-source AI models. While closed models cite high development costs, proponents of open
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Palantir CEO Alex Karp doesn't hold back in interview as he rails against AI industry
Palantir CEO Alex Karp doesn't hold back in interview as he rails against AI industry Palantir Technologies Inc.'s Chief Executive appeared to go into meltdown mode during an interview with CNBC today where for 20-odd minutes he went off script after being asked to discuss his company's ongoing
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Alex Karp Bashes OpenAI, Anthropic Token Model -- 'Something Has Gone Completely Wrong' - NVIDIA (NASDAQ:N
"Something has gone completely wrong," Karp told CNBC's "Squawk Box," adding, "I'm not throwing shade at them." After the anchor said his comments "sound like shade," Karp responded, "No, no, no. This is reporting." The billionaire businessman said the prevailing enterprise mindset has become,
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Palantir CEO slams OpenAI, Anthropic's token model
Palantir CEO Alex Karp has slammed the token-based pricing of AI giants like OpenAI and Anthropic, arguing businesses are wasting money without clear returns. Karp said companies are now moving away from simply buying more tokens and are instead focussing on whether their AI spending delivers a
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Palantir CEO Alex Karp Says AI Labs Are Chasing 'Tokens' - Palantir Technologies (NASDAQ:PLTR)
Palantir CEO Alex Karp Says AI Labs Are Chasing 'Tokens' While Enterprises Fear for Their IP: 'Something Has Gone Completely Wrong' Alex Karp Says Enterprises Want Value -- Not More 'Tokens' Karp delivered a blistering critique of leading AI companies during an appearance on CNBC's Squawk Box,
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Something Has Gone Completely Wrong in Enterprise AI
There is a moment in every boom when the music is still playing, the lights are still flashing, and someone finally notices that the bar tab has been left on the table. Takeaways * The AI land grab is shifting from who has the smartest model to who keeps the keys to the factory. * Token usage
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Palantir Accuses OpenAI and Anthropic of Siphoning Companies' DNA
Speaking Wednesday on CNBC, Alex Karp launched a direct attack on the leading artificial intelligence labs. The chief executive of American technology giant Palantir said OpenAI's and Anthropic's business model, largely built on token consumption, is increasingly being challenged by major US
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Palantir CEO Alex Karp launched a scathing critique of frontier AI labs OpenAI and Anthropic, declaring that 'something has gone completely wrong' with their token-based pricing models. In a high-energy CNBC appearance, Karp claimed CEOs are 'livid' about rising AI costs and minimal returns, while enterprises increasingly turn to cheaper Chinese models and open-weight alternatives. The controversy highlights mounting tensions in the AI industry as businesses demand better value and control over their data.
Palantir CEO Targets Token-Based Pricing Model
Alex Karp delivered a blistering assessment of the AI industry during a CNBC 'Squawk Box' appearance, taking direct aim at OpenAI and Anthropic's business practices. The Palantir CEO criticized the token-based pricing model that has become standard among frontier AI labs, arguing it delivers insufficient value while costs continue to escalate. 'I'm not throwing shade at them, but something has gone completely wrong,' Karp stated. 'The basic view among enterprises in this country is I'm going to chillax and waste my time with tokens.'
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Source: SiliconANGLE
The criticism of AI industry pricing comes as enterprise AI costs surge and new models prove more expensive than previous iterations. Karp claimed that CEOs are privately expressing frustration with the current arrangement, telling him they're getting 'no value' from enterprise AI tools while paying premium prices. According to Karp, these business leaders believe AI labs are 'stealing the weights and alpha' of their businesses while imposing what he described as a 'wealth tax' on companies.
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Enterprises Shift Toward Open-Weight Models and Chinese Alternatives
The mounting frustration with frontier AI labs has driven a significant shift in enterprise behavior. Companies are increasingly adopting open-weight models capable of performing similar tasks at a fraction of the price, or turning to Chinese AI alternatives to reduce costs. Microsoft is reportedly weighing the use of DeepSeek, a Chinese AI model, while Coinbase kept its AI costs flat by using Chinese open-weight models. U.S. startup Cursor built its latest model on top of Kimi 2.5, a model from Moonshot AI backed by Chinese e-commerce giant Alibaba.
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Source: SiliconANGLE
According to OpenRouter data, Chinese AI model usage is skyrocketing as enterprises seek ways to lower their bills. This trend represents a double challenge for domestic labs: U.S. companies are turning to cheaper Chinese models just as the Trump administration blocks access to some of the best American AI tools. Karp warned that the industry should not underestimate China's AI advancements, emphasizing the speed at which the country is making progress in building AI models.
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The Push for AI Sovereignty and Proprietary Tools
Just one day before his CNBC appearance, Palantir published a manifesto devoted to what it described as 'AI sovereignty'—the principle that companies should build their own AI tools rather than simply customize those offered by frontier AI labs. Karp views open-weight models as a potential solution for CEOs frustrated by the current market dynamics. 'What is happening among the most technical players is they're saying, I want something I own. This is my business,' he explained.
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This shift toward building proprietary tools reflects broader concerns about intellectual property protection and control over sensitive data. Many businesses are moving from using far-reaching AI models to training their own, more efficient systems. Earlier this week, Palantir announced an expanded partnership with Nvidia to use the chipmaking giant's AI tools to build custom models for U.S. government agencies. 'What aligns me with Nvidia is what the technical customers want, which is control over their compute, their models, their data stack,' Karp told CNBC.
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Regulatory Scrutiny and National Security Concerns
The controversy extends beyond pricing to questions of national security and regulatory oversight. Karp accused AI labs of describing their models as 'irresponsibly dangerous for everyone' without providing clarity on how enterprise intellectual property will be protected. The White House has asked both Anthropic and OpenAI to limit or delay the release of their most powerful models amid rising regulatory scrutiny. Developers are reportedly blaming Anthropic CEO Dario Amodei for Washington's response, saying he was too vocal about the potential risks of his company's technology. One developer told Axios they are using Anthropic's tools less, in part due to Amodei's warnings.
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Source: NYT
Karp also criticized the U.S. government's reliance on AI companies for military and national security applications, calling it 'effing insane' to outsource battlefield technology to the consensus view in Silicon Valley. This positions Palantir, a major defense tech player, as an alternative to the frontier labs for sensitive government work.
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Geopolitical Competition Intensifies
The debate unfolds against a backdrop of intensifying geopolitical competition between the U.S. and China. Karp, perhaps the most visible spokesman of Silicon Valley's defense tech sector, has consistently framed technological competition with China in terms of a new Cold War. His criticism suggests that the current business models of frontier AI labs may actually undermine American competitiveness by pushing enterprises toward Chinese alternatives. Despite his harsh criticism, Karp acknowledged Amodei as a 'historic figure' and called Anthropic one of the fastest-growing companies in American history.
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The situation reveals a fundamental tension in the AI industry: after years of hype and seeming invincibility, U.S. AI labs are no longer viewed as untouchable. Whether driven by concerns about money, regulation, or national security, the result is the same—frontier AI labs are receiving pushback from some of their biggest customers. As enterprises demand better returns on investment and greater control over their data, the industry faces pressure to rethink its approach to pricing and partnership.
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