Palantir's Karp bashes OpenAI, Anthropic token model: 'Something has gone completely wrong'

Palantir CEO Alex Karp criticized the token model (a pricing system where AI companies charge based on the number of tokens, or text units, processed) used by OpenAI and Anthropic, saying costs have become unreasonably high and enterprises are losing interest. In response, businesses are shifting toward open weight models (AI systems with publicly available internal parameters that can be customized and run independently) and building their own custom AI tools to reduce expenses and maintain control over their data.