Palantir CEO Says Token Pricing Unsustainable for Enterprises

Palantir chief executive Alex Karp told CNBC that the token pricing model used by leading U. S. AI laboratories is becoming unsustainable for enterprises. He explained that the model charges customers based on the number of tokens processed, which can lead to unpredictable expenses.

Karp said that this cost structure is prompting companies to explore open-weight and proprietary AI models as alternatives. He noted that such alternatives could give businesses greater control over pricing and performance. The interview underscored growing concerns among firms about the affordability of AI services.