Palantir CEO Slams OpenAI, Anthropic AI Pricing Models

Palantir CEO Alex Karp is criticizing the token-based pricing model used by major AI companies like OpenAI and Anthropic. He argues that many businesses are spending heavily on artificial intelligence without seeing meaningful returns. Speaking to CNBC, Karp stated that the way frontier AI companies sell their products has left enterprise customers increasingly dissatisfied. He questioned the industry's current business model, even while stressing his criticism wasn't personal. Most leading AI companies charge customers based on "token usage," where tokens are units of text processed by AI models. Karp believes this model is failing to generate enough business value for enterprise customers. He quoted enterprises saying they are "paying for tokens that create no value." Karp also raised concerns about businesses potentially exposing valuable intellectual property while paying for AI services. He says corporate customers are increasingly frustrated. Palantir positions itself as an alternative, allowing organizations to retain greater control over their data and AI systems. This matters because businesses want more control over their AI technology, rather than relying completely on external providers.