Palantir CEO Alex Karp predicts U.S.-China AI race will have one winner as GOP slams Trump's data deal
Palantir Technologies CEO Alex Karp has warned that the US-China AI race will likely have only one winner, urging Western countries to act fast to stay competitive. In a recent interview with CNBC, Karp highlighted the serious risks and benefits of AI, stressing that innovation and national security go hand-in-hand. He also addressed political criticism about Palantir's federal contracts and denied surveillance allegations. Despite recent stock dips, Palantir's value surged 435% over the past year. With billions at stake and global power dynamics shifting, Karp's message is clear—the AI race is on, and the West must lead.
Tired of too many ads?
Remove Ads
Why does Alex Karp believe the U.S.-China AI race will have only one winner?
Is the West falling behind in AI innovation?
Tired of too many ads?
Remove Ads
What's the controversy surrounding Palantir's government work?
How much government work has Palantir secured under Trump?
How has Palantir's stock performed in the last year?
What's next for Palantir and U.S. leadership in AI?
Tired of too many ads?
Remove Ads
FAQs:
Palantir Technologies Inc. (NASDAQ: PLTR) CEO Alex Karp has issued a strong warning about the ongoing artificial intelligence race between the United States and China. Speaking on CNBC's 'Squawk on the Street' Thursday, Karp stated bluntly that the AI arms race 'will have one winner,' and he urged Western countries to act quickly or risk falling behind. While he highlighted the benefits of AI, he also underscored its risks, warning that failing to innovate responsibly could put democratic nations at a disadvantage. His comments come amid political criticism and a dip in Palantir's stock.Karp emphasized that the global competition in artificial intelligence is not just about technology—it's about values, power, and national security. According to Karp, 'either you win or you lose in this game.' He made it clear that the AI race isn't like traditional markets where multiple players can thrive; instead, there will likely be one dominant power, and he believes it's crucial that Western democracies lead that charge.He credited American corporate culture for fostering rapid innovation, saying that U.S. companies are uniquely positioned to adapt quickly and push tech boundaries. 'No other economy has corporate leaders as adaptable and tech-savvy while remaining deeply grounded in industry expertise,' he added.Karp's warning wasn't just for the U.S. government—it was a message for all Western allies. He urged countries in Europe and beyond to learn from America's aggressive innovation approach. He expressed concern that without similar urgency and investment, other democratic nations could lose ground in AI development, making the global balance of power increasingly tilted in China's favor.The urgency he stressed reflects a broader concern among policymakers and tech leaders about China's rapid advancements in AI, especially in military and surveillance applications.While Karp made headlines with his AI warnings, Palantir is also facing political heat. Some Republican lawmakers are criticizing the Trump administration's expanding deals with the company, citing concerns over surveillance and data privacy. There are reports alleging that Palantir helped gather information on Americans during Trump's term.Karp directly addressed these claims, calling them 'ridiculous.' He denied that Palantir surveilled U.S. citizens to aid the federal government, insisting that the company operates within strict legal and ethical frameworks.Still, the pushback from GOP lawmakers has had a market impact. On Thursday, PLTR stock fell by 7.77%, closing at $119.91, following reports of criticism over the company's government contracts.Despite the controversy, Palantir has significantly expanded its footprint in the federal government. Since Donald Trump took office, the company has secured over $113 million in new or extended contracts, not including a massive $795 million deal with the Department of Defense. These contracts span across various government departments, including defense, intelligence, and public health.Palantir's growing role in national security, and its work with the U.S. military, puts it at the center of both innovation and political scrutiny.Despite recent criticism and Thursday's stock dip, Palantir has seen a 435% surge in its stock value over the past 12 months. Investors have largely backed the company's strong positioning in AI and defense technologies, as well as its growing list of public sector and private sector clients.However, Karp's comments—and the political tension around federal contracts—signal that volatility may continue. As the AI race intensifies, Palantir's future may depend just as much on public trust as it does on government funding.With countries like China investing billions into AI, Karp's call for the West to 'keep up' isn't just a company pitch—it's a broader plea for urgency. Whether it's through policy changes, public-private partnerships, or stronger investment in AI research, the next few years could decide who leads the global tech frontier.As the AI landscape evolves, Palantir Technologies remains at the center of the debate—balancing innovation, ethics, politics, and national security. Karp's stark message is clear: the AI race isn't slowing down, and only the most prepared nation will win.A1: He believes AI dominance will go to one nation, urging the West to move faster.A2: No, CEO Alex Karp denied all surveillance claims linked to the Trump administration.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
2 hours ago
- New Indian Express
'AI models can hallucinate or misfire'
Artificial Intelligence (AI) offers immense potential, but it's not without challenges. Mohit Saxena, Co-Founder & CTO, InMobi & Glance told TNIE that there's the critical need for human oversight and that AI models can hallucinate or misfire, and in today's sensitive digital climate, ensuring responsible output is essential. 'We're investing in rigorous moderation infrastructure and developing new governance frameworks to mitigate these risks,' he said. He added that deep AI expertise is scarce. 'While surface-level applications like RAG (Retrieval-Augmented Generation) are becoming common, true innovation requires depth in data science, ML infrastructure, and systems thinking—talent that's still hard to find.' But our global presence in Bengaluru, San Francisco, and the UK gives us broader access to specialised talent pools, the co-founder said. Talking about other key challenges, he said that AI infrastructure is expensive. Running advanced models at scale demands significant compute and energy. 'Our approach is rooted in frugality—we optimize model usage, leverage pre-processing, explore alternatives like TPUs (Tensor Processing Unit), and work closely with partners like Google to get the most out of every dollar,' he said. InMobi views AI not just as a tool, but as a foundational shift and its roadmap over the next one to three years is anchored in three key areas. 'First, we are reimagining engineering productivity with AI—helping experienced engineers scale faster and empowering fresh talent to leapfrog traditional learning curves. AI is now embedded into every aspect of how we build—whether it's writing code, improving observability, or boosting efficiency,' he said. 'Second, we are building intelligent automation into our core business processes—moving from simple scripting to AI agents that can deconstruct complex workflows, predict outcomes, and take action. This isn't just automation; it's autonomous decision-making at scale. Third, we're embracing the rise of agentic architecture—where agents talk to agents, not APIs (Application Programming Interface), to get work done. This is the future of system communication, and are actively developing for it,' he further said. InMobi is setting up a dedicated unit to track and accelerate engineering efficiency with AI, with a goal to complete most of the foundational work by year-end. The company is leveraging AI to generate high-impact formats—ranging from image-based ads to audio creatives—enabling brands to engage users across multiple touchpoints. It also uses AI to generate and summarize content at scale. In the visual content space, he said the company is leveraging Contrastive Language-Image Pre-training (CLIP) to bridge the gap between AI-generated creativity and real-world commerce through its Glance AI product. 'By using CLIP, we're able to understand and interpret AI-generated fashion looks—essentially decoding the visual style and identifying apparel elements within the image. These elements are then matched to real products from our extensive catalogue of brand and retail partners,' he explained. Even before the LLM (large language model) wave, the company has been leveraging AI for content generation at Glance. 'We're onboarding fresh engineering talent through structured bootcamps where AI adoption starts from day one—including access to AI assistants and hands-on experience with applied ML tools. Simultaneously, we're deepening our bench strength by hiring top-tier data scientists—we've onboarded over 50 employees in the past year alone, across domains like LLMs, DNNs (Deep Neural Networks), and imaging. We're also shifting our hiring lens—prioritising engineers with a strong aptitude in data science and statistical thinking. Our aim is that 80% of our workforce, both new and existing, to be highly AI- and ML-savvy in the next 1–2 years,' the co-founder and CTO informed.
Economic Times
3 hours ago
- Economic Times
China approves some exports of rare earths ahead of US talks
Beijing has approved some rare earth export applications, potentially easing tensions before US-China trade talks. The commerce ministry confirmed the approvals, noting growing demand in robotics and electric vehicles, and will expedite approvals for qualified exporters to Europe. This follows a call between Presidents Trump and Xi, where Trump expressed optimism about resolving trade issues and advancing towards a deal. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Beijing says it granted approval to some applications for the export of rare earths, a move that could ease tensions before trade negotiations between the US and China next Chinese commerce ministry confirmed the approval of the applications without specifying which countries or industries were covered, even as it noted growing demand for the minerals in robotics and electric vehicles. The ministry will continue to review and approve compliant export applications, according to a statement on confirmation comes days after the US and Chinese presidents spoke, following which Donald Trump said that there "should no longer be any questions respecting the complexity of Rare Earth products." Delegations from Beijing and Washington are scheduled to meet in the UK to conduct trade negotiations on granted temporary export licenses to rare-earth suppliers of the top three US automakers, Reuters reported on Friday. The commerce ministry also said earlier Saturday it will speed up approvals for qualified rare earth exporters to comment came one day after a rare call with Xi aimed at resolving trade tensions that have been brewing over the topic for that time, Trump said there had been "a very positive conclusion" to the talks, adding that "there should no longer be any questions respecting the complexity of Rare Earth products.""We're very far advanced on the China deal," Trump told reporters on countries struck an agreement on May 12 in Geneva, Switzerland, to roll back for 90 days most of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump's January inauguration. Financial markets that had worried about trade disruptions rallied on the news.
Economic Times
3 hours ago
- Economic Times
China vice premier to meet US delegation for trade talks: Beijing
Chinese Vice Premier He Lifeng will meet a US delegation for talks next week in Britain, Beijing announced Saturday amid a fragile truce in the trade dispute between the two powers. US President Donald Trump had already announced on Friday that a new round of trade talks with China would kick off in London beginning Monday, after he spoke by phone with Chinese counterpart Xi Jinping in a bid to end a bitter battle over tariffs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Chinese Vice Premier He Lifeng will meet a US delegation for talks next week in Britain, Beijing announced Saturday amid a fragile truce in the trade dispute between the two will visit the United Kingdom from June 8 to 13 at the invitation of the British government, China's foreign ministry said in a said He and American representatives will co-chair the first meeting of the China-US economic and trade consultation President Donald Trump had already announced on Friday that a new round of trade talks with China would kick off in London beginning Monday, after he spoke by phone with Chinese counterpart Xi Jinping in a bid to end a bitter battle over posted on his Truth Social platform that Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer would meet the Chinese discussions will mark the second round of such negotiations between the world's two biggest economies since Trump launched his trade war shortly after returning to the White House in January.A first meeting, held in mid-May in Geneva, brought a pause to the US-China trade Trump then accused Beijing of not respecting the terms of the de-escalation Thursday the Republican president finally discussed the issues with Xi for the first time since the trade tensions soared, assuring that the conversation had been for his part told Trump the two should "correct the course" of bilateral relations, according to remarks quoted by official Chinese media.
