On Wednesday, Palantir Technologies Inc. (NASDAQ:PLTR) CEO Alex Karp argued that many enterprise customers are growing increasingly skeptical of frontier AI companies, warning that businesses fear sacrificing their intellectual property and competitive advantage in exchange for AI services.
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, arguing that the industry has lost sight of what enterprise customers actually want.
While joking that he would enjoy debating Anthropic CEO Dario Amodei privately and insisting he was “not throwing shade” at AI leaders, Karp said the broader AI ecosystem has “gone completely wrong.”
“The basic view among enterprises in this country is ‘I’m going to chillax and waste my time with tokens, I’m going to get no value, and they’re going to get my IP,’” Karp said.
According to Karp, executives have privately told him they are increasingly worried that AI companies could gain access to their proprietary data and their “alpha” — the unique competitive edge that differentiates a business.
“We need to build trust,” he said, adding that companies are growing tired of AI promises that fail to translate into meaningful business outcomes.
Palantir CEO Raises Concerns Over AI Control And Enterprise Data
Karp also questioned whether critical decisions surrounding AI, particularly in defense applications, should be influenced by the policy preferences of Silicon Valley companies.
Appearing to reference Anthropic’s reported disagreements with the U.S. government over certain military uses of AI, he said, “Are we really going to outsource the battlefield of this country to the consensus view in Silicon Valley? That is effing insane.”
When CNBC co-anchor Becky Quick remarked that he sounded angry, Karp replied, “No. This is the voice of American business that is being channeled through me.”
He went on to say that many CEOs privately share his frustration, saying they are “twice as livid” about the current direction of enterprise AI.
Investors And Industry Leaders Echo Karp’s Concerns
The interview quickly sparked reactions across the technology community.
Futurum Equities Chief Market Strategist Shay Boloor said Karp’s message reflected a growing demand among enterprises for ownership, security and control over their “compute, models, data stack and alpha,” rather than simply paying for AI tokens.
Investor and All-In Podcast host Jason Calacanis argued that frontier AI companies could use heavily discounted AI access to attract customers before ultimately leveraging that position to compete with them, adding that open-source AI is the best defense.
Meanwhile, Moor Insights & Strategy CEO Patrick Moorhead said every CEO should watch the interview, writing that Karp was voicing concerns “few will say” publicly about the risks businesses face when relying on frontier AI models.
Price Action: Shares of Palantir rose 7.77% to close at $125.73 on Wednesday, gaining $9.06 and edged up another 0.71% to $126.62 in Thursday’s premarket trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, Palantir ranks in the 97th percentile for growth, though its stock has posted negative returns over the short, medium and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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