Palantir CEO Slams OpenAI, Anthropic Token Model

Palantir CEO Alex Karp is criticizing the token model used by AI companies like Anthropic and OpenAI. He says businesses are spending too much on artificial intelligence without seeing enough value. Karp notes that most leading AI companies charge customers based on tokens, which are small units of text processed by AI models. As AI models become more powerful, they require more computing, making them more expensive. He believes companies are now moving away from just buying tokens and focusing on the return on their AI investment. This shift is pushing businesses toward open-weight AI models. These models allow companies to customize and run them on their own infrastructure at a lower cost. Karp warns against underestimating China's rapid progress in AI development. He also states that more businesses are choosing to build and train their own models using their internal data, rather than relying on third-party providers. The bottom line is that companies want full control over their AI computing, data, and models, rather than depending on external AI labs. This directly impacts how businesses will invest in and implement AI going forward.