Palantir CEO Alex Karp Sounds Alarm on China's Deepseek – Could This Threaten Palantir's AI Dominance?

Palantir Technologies Inc. PLTR, the AI behemoth that has been in the headlines for its artificial intelligence platform, has been the forerunner in providing data analytics tools to government customers for intelligence gathering, counterterrorism, and military purposes.

The rise of China’s DeepSeek, with its open-source AI model and lower development costs, raises the question of how it might impact the future growth of Palantir’s stock in an increasingly competitive market.

CEO Alex Karp recently discussed the growing competition in artificial intelligence from DeepSeek, which has raised apprehensions about the U.S.’s position in the AI race.

In an interview with CNBC, Karp stressed the urgency for the U.S. to accelerate its AI development in light of these emerging threats. He acknowledged that technology, while beneficial, could be misused, especially in the hands of adversaries, and emphasized the need for a coordinated national effort to safeguard American innovation.

Karp remains optimistic that national security will help protect U.S. advancements from manipulation or theft.

Palantir is set to report its fourth-quarter earnings on Monday. The street view for the adjusted earnings per share stands at 11 cents, while the analyst consensus estimate for revenues is $775.907 million.

DeepSeek, an open-source AI model, recently overtook OpenAI’s ChatGPT as the top free app on Apple’s U.S. App Store, shaking the tech world.

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This success raised questions about the costs of developing AI models, particularly in comparison to the enormous investments made by tech giants like NVIDIA Corporation NVDA.

Karp expressed doubt about the reported low cost of DDeepSeek’sdevelopment, stating that he does not fully believe the estimates surrounding the mmodel’screation.

Palantir, a company valued at nearly $200 billion, has seen substantial growth, largely due to increasing demand for AI solutions.

Karp credited the ccompany’ssuccess to the focus on improving U.S. technological capabilities, positioning Palantir as a leader in the AI space.

In addition to discussing AI, Karp also addressed political controversies, offering support for Israel following the October 7 attack and defending Tesla, Inc. TSLA CEO Elon Musk against allegations related to political gestures. Karp also took a firm stance on illegal immigration, asserting that individuals who enter the U.S. illegally, particularly those engaged in criminal activity, should not be allowed to stay.

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