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

Published 2 July 2026 · tech

Palantir CEO Alex Karp Targets OpenAI, Anthropic Over AI Business Model, Questions Data Practices Published By, Last Updated: July 02, 2026, 10:06 IST Palantir's Alex

Palantir CEO Alex Karp Targets OpenAI, Anthropic Over AI Business Model, Questions Data Practices Published By, 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. CEO of Palantir Technologies Alex Karp (Photo: AFP) 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.