Palantir CEO Warns of AI Race Between US and China

On Thursday, Alex Karp, the CEO of Palantir, expressed his concerns about the artificial intelligence competition, underscoring that either the United States or China would emerge victorious. He emphasized the urgency for the tech industry to keep advancing to prevent a setback.

“My general view on AI is that it can be quite dangerous; there are both good and bad consequences, and it’s essentially a race between us and China,” Karp told CNBC’s “Squad Work on the Street.”

“We’re in an arms race,” he added, illustrating the pressure the tech sector is under.

This comment came as a response to inquiries regarding a Republican proposal aimed at preventing the nation from regulating artificial intelligence for the next decade.

Dario Amodei, CEO of Anthropic, criticized the proposal in a New York Times op-ed, stating, “A 10-year pause is too simplistic. AI is progressing too rapidly.” He warned that without a proactive federal strategy, a halt could lead to unfavorable outcomes—one where the government lacks the capability to respond effectively, and no national policy serves as a safety net.

Karp believes that with partnerships involving major firms like Microsoft, Oracle, Deloitte, and PWC, Palantir is at the forefront of this high-tech race.

“This type of corporate leadership is rare. There is an eagerness to embrace innovation and an understanding of the deep expertise necessary in technology,” he remarked.

He also noted that Western allies in Europe, as well as partners in the Middle East, are likely to look to the US for guidance, while adversaries are actively trying to understand and replicate US advancements.

Karp has consistently advocated for the US to prioritize its global standing, insisting that a “national effort” is essential.

In a letter to shareholders, he reiterated Palantir’s commitment to bolstering US defense initiatives.

He dismissed a recent New York Times article suggesting that the publication was assisting the Trump administration in data collection on American citizens.

Notably, AI companies collectively garnered $360 billion last year, showing stock performance surpassing other sectors, with gains of over 60% this year alone.

However, on Thursday, stocks dropped by around 6%.

When questioned about stock prices, Karp simply stated, “If you don’t like the price, exit.”