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

Curated by THEOUTPOST

On Tue, 4 Feb, 8:05 AM UTC

2 Sources

Share

Palantir's CTO Shyam Sankar warns of an AI arms race with China, calling for urgent US action. The company advises against using Chinese AI models while reporting strong financial results.

Palantir Sounds Alarm on AI Competition with China

Palantir Technologies Inc.'s Chief Technology Officer, Shyam Sankar, has issued a stark warning about the escalating artificial intelligence (AI) competition between the United States and China. During Palantir's fourth-quarter earnings call, Sankar characterized the situation as an "AI arms race" and urged immediate action to maintain US dominance in the field 1.

The DeepSeek Challenge and AI Commoditization

Sankar's comments were prompted by a question about the impact of China's DeepSeek AI model on Palantir. He noted that the emergence of DeepSeek underscores a trend Palantir has been highlighting for two years: the commoditization of AI models. Both closed and open-source models are becoming increasingly similar, while inference costs are rapidly decreasing 1.

Palantir's Stance on Chinese AI Models

In response to the perceived threat, Palantir has advised its clients, particularly those in the US government, to avoid using AI models from Chinese startups like DeepSeek. Ryan Taylor, Palantir's chief revenue officer, stated, "We would strongly discourage it [DeepSeek] and don't think any customer in the U.S. government will be able to use it" 2.

Broader Implications and Government Response

Sankar argued that the concern extends beyond mere AI competition, encompassing a broader economic, diplomatic, and technological conflict with China. He disagreed with OpenAI CEO Sam Altman's previous stance on potential cooperation with China in AI development, citing recent accusations of intellectual property theft 1.

The US government has taken notice of these developments. Federal agencies like NASA have reportedly banned the use of DeepSeek's technology by their employees. The White House National Security Council is reviewing the implications of DeepSeek, with Press Secretary Karoline Leavitt describing the situation as a "wake-up call to the American AI industry" 2.

Palantir's Financial Performance

Amidst these geopolitical tensions, Palantir reported strong financial results. The company's fourth-quarter revenue reached $827.52 million, surpassing the estimated $775.91 million. For the upcoming quarter, Palantir projects revenue between $858 million and $862 million, exceeding forecasts of $799.35 million 1 2.

Market Response

The market responded positively to Palantir's performance and warnings. The company's shares surged 22.75% in after-hours trading, reaching $102.79. This followed a 1.52% gain during regular trading hours, with the stock closing at $83.74 1 2.

Continue Reading
Palantir's AI Ambitions and Political Influence Grow Amid

Palantir's AI Ambitions and Political Influence Grow Amid Pentagon Speculation

Palantir Technologies' CTO Shyam Sankar emphasizes AI's role in national defense, as the company expands its government contracts and partnerships. Speculation grows about Sankar's potential Pentagon position under a Trump administration.

Benzinga logo

3 Sources

Benzinga logo

3 Sources

Palantir's Stock Soars on Extended U.S. Army Contract and

Palantir's Stock Soars on Extended U.S. Army Contract and AI Consortium Talks

Palantir Technologies experiences significant stock growth due to an extended U.S. Army contract worth up to $619 million and potential involvement in an AI consortium for government contracts.

Benzinga logoInvestopedia logo

4 Sources

Benzinga logoInvestopedia logo

4 Sources

Palantir's Stock Dips Amid AI Advancements and Defense

Palantir's Stock Dips Amid AI Advancements and Defense Deals: A Closer Look at the Tech Giant's Future

Palantir Technologies faces a stock decline despite significant AI progress and new contracts. The upcoming AIPCon and recent deals may signal a potential turnaround for the company.

Benzinga logoThe Motley Fool logoInvesting.com UK logo

3 Sources

Benzinga logoThe Motley Fool logoInvesting.com UK logo

3 Sources

Palantir's Stock Soars Amid AI Boom and Market Shift,

Palantir's Stock Soars Amid AI Boom and Market Shift, Raising Valuation Concerns

Palantir Technologies experiences a significant surge in stock value, driven by AI advancements and a move to Nasdaq, while analysts debate its high valuation and future prospects.

Benzinga logoCNBC logoThe Motley Fool logoFinextra Research logo

7 Sources

Benzinga logoCNBC logoThe Motley Fool logoFinextra Research logo

7 Sources

Palantir's Q2 Earnings: A Pivotal Moment for Commercial

Palantir's Q2 Earnings: A Pivotal Moment for Commercial Growth and AI Prospects

Palantir Technologies faces a critical juncture as it prepares to release its Q2 earnings. Analysts are closely watching the company's commercial growth and AI initiatives, with mixed expectations for its performance.

Benzinga logoInvestopedia logoInvesting.com UK logo

3 Sources

Benzinga logoInvestopedia logoInvesting.com UK logo

3 Sources

TheOutpost.ai

Your one-stop AI hub

The Outpost is a comprehensive collection of curated artificial intelligence software tools that cater to the needs of small business owners, bloggers, artists, musicians, entrepreneurs, marketers, writers, and researchers.

© 2025 TheOutpost.AI All rights reserved