Palantir CEO Karp: OpenAI Token Model "Completely Wrong

Palantir CEO Alex Karp is criticizing the token model used by AI labs like Anthropic and OpenAI. He states that something has gone "completely wrong" as AI costs continue to rise. Here's the thing: Enterprises are now moving away from this "tokenmaxxing" approach. They are looking for a return on investment. This shift is leading some businesses to use open-weight models, which can do similar tasks at a much lower cost. Karp also warns against underestimating the speed of China's progress in building AI models. Many businesses are now building their own efficient AI tools instead of relying on broad models. Palantir itself just expanded a partnership with Nvidia to build custom models for U.S. government agencies. The bottom line is that CEOs want control over their computing, models, and data. They want to own their means of production, not transfer it to someone else.