Palantir Warns of AI Arms Race with China, Urges US Action

Palantir's Shyam Sankar: US Is At War With China In AI -- And The Time To Act Was 'Yesterday' - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc.'s PLTR chief technology officer Shyam Sankar warned that the U.S. is in an "AI arms race" with China, calling for urgent action to maintain dominance as the race for artificial intelligence escalates. What Happened: During Palantir's fourth-quarter earnings call, Sankar responded to a question about the impact of China's DeepSeek AI model on Palantir. "One of the obvious lessons of DeepSeekR1 is something that we've been saying for the last two years, which is that the models are commoditizing," Sankar said, underscoring that both closed and open-source AI models are becoming increasingly similar while inference costs are plummeting. See Also: Palantir Sounds Alarm On China's DeepSeek, Citing National Security Threat -- But Won't Drop Clients Who Use It However, he argued that the bigger concern is not just AI competition, but an all-encompassing economic, diplomatic, and technological war with China. "We are at war with China. We are in an AI arms race," Sankar declared, noting that he had disagreed with OpenAI CEO Sam Altman at the Senate AI Summit over whether cooperation with China in AI development was viable. He said now that OpenAI is accusing China of stealing U.S. AI intellectual property, it should erase any illusions about a collaborative approach. "We have to wake up with the respect for our adversary and realize that we are competing." Sankar stated that the AI race is a "winner-take-all" competition, requiring a nationwide effort. "M day was yesterday," he warned, stressing that the time to mobilize is now. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: Palantir posted fourth-quarter revenue of $827.52 million, surpassing the $775.91 million estimate. For the next quarter, it projects revenue between $858 million and $862 million, above the $799.35 million forecast. Full-year 2025 revenue is expected to range from $3.74 billion to $3.76 billion, exceeding the $3.52 billion estimate. Last month, DeepSeek's AI model stirred significant attention on Wall Street, with Chinese state-affiliated accounts reportedly amplifying its launch. The U.S. is also investigating DeepSeek's access to advanced Nvidia Corp's semiconductors, potentially violating an AI technology embargo. Price Movement: Palantir's shares jumped 22.75% in after-hours trading to $102.79. Earlier on Monday, the stock closed at $83.74, up 1.52%, according to Benzinga Pro data. Photo via Shutterstock Check out more of Benzinga's Consumer Tech coverage by following this link. Read Next: Apple's iPad Turns 15 Today: Here's A Throwback To When Steve Jobs Explained Called It The 'Third Category' After Phones And Notebooks Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. PLTRPalantir Technologies Inc$102.7924.6%Overview Rating:Speculative25%Technicals Analysis330100Financials Analysis200100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

Palantir Sounds Alarm On China's DeepSeek, Citing National Security Threat -- But Won't Drop Clients Who Use It - Palantir Technologies (NASDAQ:PLTR)

On Monday, Palantir Technologies Inc. PLTR advised its clients to avoid using AI models from Chinese startup DeepSeek. What Happened: Palantir's chief revenue officer, Ryan Taylor, stated, "We would strongly discourage it [DeepSeek] and don't think any customer in the U.S. government will be able to use it," reported Reuters. However, despite these concerns, Palantir will not sever ties with commercial clients who choose to use DeepSeek's AI models, Taylor added. See Also: Aravind Srinivas, CEO Of Jeff Bezos-Backed Perplexity, Reveals Why Most Startups Fail: 'The Thing That Most People Get Wrong...' Federal agencies, such as NASA, have reportedly banned the use of DeepSeek's technology by their employees. Palantir reported fourth-quarter revenue of $827.52 million, surpassing the consensus estimate of $775.91 million. For the first quarter, the company anticipates revenue between $858 million and $862 million, exceeding projections of $799.35 million. Subscribe to the Benzinga Tech Trends newsletter to get all the latest tech developments delivered to your inbox. Why It Matters: Palantir CEO Alex Karp has previously highlighted the competitive threat posed by DeepSeek's open-source AI model, which offers lower development costs. The White House has also placed DeepSeek under scrutiny, with the National Security Council reviewing its implications. White House press secretary Karoline Leavitt described the situation as a "wake-up call to the American AI industry." A report by online analysis firm Graphika revealed that Chinese state-affiliated social media accounts promoted DeepSeek's AI models, contributing to a significant downturn in U.S. tech stocks. Price Action: Palantir's shares surged 22.75% in after-hours trading, hitting $102.79. Earlier on Monday, the stock closed at $83.74, reflecting a 1.52% gain, according to Benzinga Pro data. Check out more of Benzinga's Consumer Tech coverage by following this link. Photo by Spyro the Dragon on Shutterstock Read Next: Apple's iPad Turns 15 Today: Here's A Throwback To When Steve Jobs Explained Called It The 'Third Category' After Phones And Notebooks Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors. PLTRPalantir Technologies Inc$102.7924.6%Overview Rating:Speculative25%Technicals Analysis330100Financials Analysis200100WatchlistOverviewMarket News and Data brought to you by Benzinga APIs