Palantir CEO Slams OpenAI and Anthropic for Token-Based Pricing

Palantir Technologies CEO Alex Karp publicly criticized OpenAI and Anthropic for their token-based pricing models, saying they have been 'completely, irresponsibly oversold' to businesses. He claimed these models create no value while putting companies at risk of losing control over their proprietary data.

Karp used the term 'tokenmaxxing' to describe this phenomenon, comparing it to an irrational maximization of a single metric in crypto and fitness culture. He argued that companies are paying handsomely for tokens without getting results, and worry about who controls the model's learned information.

Palantir has partnered with Nvidia to promote open-weight models, where the model weights are publicly available and businesses can run them on their own infrastructure. This approach gives companies full control over their data and the model itself, contrasting with closed models offered by OpenAI and Anthropic.