Palantir CEO Alex Karp Targets OpenAI, Anthropic Over AI Business Model, Questions Data Practices

Last Updated:July 02, 2026, 10:06 IST

Palantir's Alex Karp questioned how AI firms handle enterprise data, criticised token-based pricing, and called for greater customer control over models, data and compute.

Palantir CEO Alex Karp launched a scathing attack on rival artificial intelligence companies during an interview with CNBC, accusing them of operating an unsustainable business model, questioning how they handle customers’ proprietary data, and arguing that enterprises are increasingly losing trust in AI providers.

In a lengthy monologue, Karp alleged that large language models (LLMs) are being deployed in enterprise settings, saying AI models alone are insufficient for industries dealing with sensitive information such as defence, manufacturing and healthcare.

He argued that such models require an application layer to make them secure and useful, while claiming Palantir’s technology fills that role.

“When you’re using large language models, they are a critical resource. To make them valuable in an enterprise like battlefield context or regulated context or manufacturing, you have to have what’s called an application layer," Karp said.

Referring to Palantir’s Ontology platform, he added, “It takes a large language model, it makes it safe and useful and precise."

Karp claimed the technology ensures enterprise data remains protected by preventing models from accessing sensitive information or retaining proprietary data.

“Safe because it doesn’t touch your unlearned data, safe because it prevents the large language model from caching your data and replicating your business, safe because it doesn’t transfer your IP," he said.

Without naming companies directly for much of his remarks, Karp criticised what he described as the prevailing business model among leading AI firms, saying enterprises fear handing over valuable intellectual property while receiving little in return.

“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," he said.

While insisting he was “not throwing shade" at OpenAI CEO Sam Altman or Anthropic CEO Dario Amodei, Karp maintained that “something has gone completely wrong" in the industry.

“This is reporting," he said. “And this is reporting that I’ve literally, against my own interests, called… I’m profiting from this."

According to The Independent, Karp’s comments were directed at rival AI firms including OpenAI and Anthropic, with the Palantir chief accusing them of misleading corporate customers while attempting to “oversell" the risks associated with AI.

The publication reported that Karp suggested leading AI companies were benefiting from access to confidential customer data and business advantages.

Karp said customers, particularly those operating critical infrastructure in the public and private sectors, increasingly want full control over their computing infrastructure, AI models and data.

“The technical customers want control over their compute, their models, their data stack, and their alpha. They want to know they own the means of production," he said.

He added that Palantir now offers customers the flexibility to switch between AI models rather than locking them into a single provider.

“Our products are agnostic. We now sell a product to customers that allows them to switch from model to model. And we’re completely agnostic," Karp said.

Calling for greater transparency across the AI industry, he argued that enterprises deserve clear answers about how their information is handled.

“We need to rebuild trust. And that trust is going to happen where everyone gets to ask and answer basic questions. Who owns the data? Where is it cached? Are the prompts secure? Is this being transferred to you?" he said.

Karp also questioned why AI providers primarily charge customers based on token usage rather than measurable business outcomes.

“If it were so valuable, I could make you a billion dollars tomorrow. Wouldn’t I say, I’ll make you a billion dollars, and I want 30%? Why are they charging for tokens if it’s so valuable?" he asked.

The Palantir CEO’s remarks come amid shifting political dynamics surrounding AI companies and growing competition between Palantir and frontier AI labs.

The publication reported that Karp described rival AI business models as “effing insane" and claimed businesses and governments were “twice as livid" as he was over the issues he raised.

About the Author

Vani Mehrotra

Vani Mehrotra is the Deputy News Editor at News18.com. She has more than 10 years of experience in national and international news and has previously worked on multiple desks.

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