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Palantir CEO Slams AI Industry for 'Going Completely Wrong' With Token-Based Models
mint - companies·Friday, 3 July 2026
Palantir CEO Alex Karp publicly criticised AI companies including OpenAI and Anthropic, saying the industry has gone completely wrong by relying on costly token-based models. He argued firms should focus on return-on-investment approaches instead. Karp also raised concerns about data ownership and the rapid advancement of Chinese AI capabilities.
Why It Matters
Token costs are a real pain point for businesses trying to use AI at scale. Karp's criticism puts a spotlight on whether today's dominant AI business models are actually sustainable for the companies using them.
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