Palantir's Karp Says Enterprise AI Is Broken; True Value Comes From Compute and Controlled Apps

Palantir CEO Alex Karp argues that enterprises buying token-based access to frontier AI are paying for little value while exposing their IP, calling the model flawed. He contends durable AI profits sit at the compute layer (NVIDIA) and Palantir’s own ontology/application layer, not in frontier labs, and argues firms should control their data and models. Palantir’s strong Q1 2026 results—high growth and margins with raised guidance—support his thesis, though the stock trades at rich valuations versus NVIDIA. He also frames AI as a national-security issue, underscoring the push for sovereign AI stacks where enterprises own the means of production.