AI industry is ‘effing insane’ – Palantir CEO

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Alex Karp, whose company supplies artificial intelligence tech to the US government, says authorities should not trust the industry

Palantir CEO Alex Karp has unleashed a lengthy tirade against the AI industry, arguing that Western governments and militaries shouldn’t trust companies like OpenAI and Anthropic with sensitive data.

Karp appeared on CNBC on Wednesday to discuss Palantir’s recent infrastructure partnership with Nvidia – under which the former will sell its operating systems, powered by the latter’s hardware and AI models, to customers as an all-in-one data analytics package. However, the interview soon spiraled into a 20-minute rant from the Palantir CEO about the state of the AI industry.

Most businesses and governments who work with OpenAI and Anthropic purchase tokens from these companies, which grant access to their Large Language Models (LLMs) on a pay-as-you-go basis. While this arrangement generates vast income for the AI companies, their clients end up ripped off, Karp argued, as they hand over their money and data while gaining no control over the weights of the models – essentially the tweaks that determine the choices the models make.

“Are we really going to outsource the battlefield of this country to the consensus view in Silicon Valley?” he asked. “That is effing insane.”

Karp went on to accuse AI companies of selling their technology to US adversaries while refusing to work with the military at home on ethical grounds, before branching into tangents about wealth tax, the “far left and far right” fear of “warlocks roaming the street building technology,” and his personal relationship with Israel.

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