Palantir CEO Alex Karp criticizes the AI industry’s business model, focusing on token-based pricing used by OpenAI and Anthropic. In comments reported across multiple outlets, Karp says “something has gone completely wrong,” arguing that it is illogical to charge for tokens if the underlying output is highly valuable. He also links the issue to rising AI costs, saying newer models are turning out to be more expensive than prior ones, which is pushing enterprises to reconsider how they buy and deploy AI systems. Karp portrays a trend he describes as “tokenmaxxing” and suggests it is not aligned with enterprise return on investment. Several reports note that he frames the situation as forcing companies to prioritize efficiency and consider alternatives such as open-weight models. One outlet also includes Karp’s caution that China’s AI progress may be faster than many in the industry acknowledge. While not all coverage agrees on the merits of his critique—some analyses raise questions about whether his assessment reflects enterprise realities—the reporting consistently describes his pointed, public criticism of OpenAI and Anthropic’s token-based approach.