Palantir CEO Alex Karp publicly criticized OpenAI and Anthropic, arguing their business model asks enterprise customers to surrender data access to strengthen the AI companies' competitive position while receiving little value in return. In response, Palantir announced a partnership with NVIDIA to provide U.S. government agencies and critical infrastructure operators with custom AI models that run on isolated networks, allowing customers to own and control the model weights completely.
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Sign up free →What happened
Palantir CEO Alex Karp said in a CNBC interview that enterprise customers are questioning why they must give data access to AI companies like OpenAI and Anthropic to strengthen those firms' competitive advantage. He argued models are being "oversold irresponsibly" and announced a partnership with NVIDIA to build custom models for U.S. government agencies that run in isolated networks and give customers full ownership of model weights.
Why it matters
Enterprise customers worry they are wasting resources on tokens while losing only intellectual property, according to Karp. Companies prefer models where they retain complete control over computing, data, and model weights rather than relying on third-party vendors, suggesting a shift in how organizations may want to procure and deploy AI systems.
What to watch
Palantir and NVIDIA are building "frontier-class" custom models based on NVIDIA Nemotron for U.S. government agencies and critical infrastructure operators, with customers able to train their own data on-premises and maintain full model ownership.
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