Palantir CEO Alex Karp used strong language this week to describe parts of the artificial intelligence industry. He said some AI companies act like Marxists in their business dealings.
Karp made the comments in Palantir's quarterly letter to shareholders. He has a background in philosophy and holds a PhD in social theory.
In the letter, Karp wrote that some AI labs want to take over the businesses of their own partners. He said this happens whether the labs mean to do it or not.
"There are Marxist overtones and undertones to our business," Karp wrote. He argued that large language model companies are trying to control the tools their partners rely on.
The comments came right after Palantir reported a strong second quarter. The company posted $1.9 billion in revenue, up 93% compared to the same quarter last year.
Palantir also reported $1.1 billion in profit for the quarter. Karp noted this profit was higher than the company's total revenue from the same quarter one year earlier.
What Karp Said on the Earnings Call
Karp expanded on his views during a call with Wall Street analysts. He used blunt language often heard from people in the defense technology field.
He asked whether companies want a future where their work helps rivals succeed. He described this as a small group of people controlling the tools that businesses depend on.
Karp said Palantir works differently than some AI labs. The company offers software that works with many different AI models, letting clients keep control of their own data.
He also said clients keep ownership of what he called their AI "exhaust." This includes prompts, workflows, and other data created while using the software.
Karp compared paying AI labs for access to a costly personal habit. He said businesses are paying for the right to let AI labs learn from their expertise.
He claimed this lets outside AI labs build competing products without needing the original business. He said some AI leaders view this behavior as being for a good cause.
Other Tech Leaders Have Raised Similar Concerns
Karp is not the only executive to raise this point. Microsoft CEO Satya Nadella has also spoken about competing directly with AI labs like OpenAI and Anthropic.
Some critics point to a list of companies that paid AI labs for services. At the same time, those same labs launched competing products in fields like design, healthcare, and legal work.
Palantir did not name specific AI companies in its letter or on the call. Karp's comments focused on the wider AI industry rather than one single competitor.
Palantir's senior leadership team is entirely made up of men, according to the company's most recent reporting.
Palantir raised its full year revenue guidance following the strong quarter. The company now expects revenue growth of 82% for the year, along with US commercial revenue growth of 134%.
