Observed Signal · Jul 1, 2026 · Executive Commentary · Source: CNBC Technology · Impact: 3/5 · Sentiment: Positive
Palantir CEO Criticizes OpenAI and Anthropic Token Model
Palantir CEO Alex Karp sharply criticized the token-based pricing model used by AI labs OpenAI and Anthropic, saying "something has gone completely wrong" as token costs for enterprise AI usage surge. Karp told CNBC that enterprises and governments frustrated by rising token expenses are increasingly interested in open-weight models and building their own more efficient proprietary models. He framed Palantir’s expanded partnership with Nvidia — announced earlier in the week — as a solution that gives customers control over compute, models, data stacks and intellectual property. The article notes Palantir shares rose about 9% the day of Karp’s comments and that Chinese AI models are closing capability gaps with U.S. frontier labs.
Executive criticism from a major enterprise AI vendor and an expanded Palantir–Nvidia partnership signal enterprise interest in open-weight models and building proprietary AI — a meaningful commercial trend that could affect vendor pricing and enterprise AI deployment choices.
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Key Takeaways & Evidence Grounding
- Palantir CEO Alex Karp publicly criticized the token-based pricing structure used by Anthropic and OpenAI.
- Karp said enterprises are frustrated by rising AI token costs and are shifting toward open-weight models and building proprietary models.
- Palantir announced an expanded partnership with Nvidia to use Nvidia’s AI tools to build custom models for U.S. government agencies.
- Palantir shares climbed about 9% on the day of Karp’s comments.
- The article was published by CNBC on 2026-07-01.
Connected Companies & Entities
5 Entities mapped“Palantir CEO Alex Karp on Wednesday criticized the token model used by U.S. artificial intelligence labs Anthropic and OpenAI as costs skyro...”
“Palantir CEO Alex Karp on Wednesday criticized the token model used by U.S. artificial intelligence labs Anthropic and OpenAI as costs skyro...”
“Palantir CEO Alex Karp on Wednesday criticized the token model used by U.S. artificial intelligence labs Anthropic and OpenAI as costs skyro...”
“Earlier this week, Palantir announced an expanded partnership with Nvidia to use the chipmaking giant’s AI tools to build custom models for ...”
“Karp told CNBC that Palantir and Nvidia’s open model is the solution for enterprises and governments seeking to own their data....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
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Palantir CEO: Enterprises 'unhappy' with frontier AI labs
Palantir CEO Alex Karp told CNBC that many enterprise customers are privately "unhappy" with frontier AI labs, accusing them of prioritizing 'tokenmaxxing' (burning tokens to signal productivity) over understanding customers' businesses. Karp said rising inference and model costs are raising alarms as firms put more AI into production and emphasized that implementation — not just foundational models — will drive value over the next several years. He also said most of Anthropic’s publicly discussed projects are running on Palantir. Karp’s remarks come as Anthropic and OpenAI take steps toward public listings, and he reiterated that effective enterprise deployment and efficiency will be critical.
Palantir CEO Karp criticizes frontier AI labs
Palantir CEO Alex Karp renewed public criticism of frontier AI labs in an exclusive CNBC interview, saying some model makers are attempting to 'drug addict' enterprises and warning businesses not to surrender intellectual property to external model providers. Karp argued enterprises should retain control of their data and models and use application layers that keep data in-house. The article notes that Anthropic and OpenAI have said customer data is not used to train their models and that OpenAI requires explicit opt-in for data use. Palantir also highlighted its strong second-quarter results, with overall revenue up 93% year-over-year and U.S. commercial revenue rising nearly 150%. Palantir recently joined an open letter with Nvidia, Microsoft and others defending open-weight AI models for national security.
Palo Alto CEO: AI token pricing must fall 90%
Palo Alto Networks CEO Nikesh Arora told CNBC that current AI token pricing is a major barrier to enterprise adoption and needs to fall sharply — to roughly 20% of current levels within 12 months and as much as 90% the following year. Arora referenced OpenAI CEO Sam Altman’s claim that OpenAI’s latest model is 54% more token-efficient for agentic coding but said further efficiency gains are needed. The article notes other executives, including Palantir CEO Alex Karp, have criticized token-based pricing and that some businesses are shifting to cheaper open-weight or Chinese models. Rising token costs are straining corporate AI budgets even as firms and cloud providers increase spending and seek new ways to fund AI infrastructure.
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