Palantir's CEO believes that either one between the U.S. and China will win the artificial intelligence arms race

Palantir CEO Alex Karp said the artificial intelligence arms race between the U.S. and China will culminate in one country winning. He also noted that his general bias on AI is that it’s dangerous, and there will be positive and negative consequences regardless of which country comes out on top.

Karp has always championed U.S. AI dominance, suggesting in January that the country needs to put more effort into developing more advanced AI models. He argued that the rise of competing artificial intelligence models, such as China’s DeepSeek, is a sign that the U.S. needs to work quickly to develop advanced AI. The entrepreneur also revealed Palantir’s commitment to equipping and enhancing U.S. defense interests in a recent letter to shareholders.

Palantir aims to improve AI in the U.S.

Palantir CTO Shyam Sankar says the US is in a winner-take-all AI arms race and war with China and DeepSeek has made it clear that "the time to mobilize has come" pic.twitter.com/tHLFVFLXpI

— Tsarathustra (@tsarnick) February 3, 2025

The tech CEO also mentioned Thursday that the U.S. currently has a leg up in the AI race, and Palantir is leading the way in making companies more secure and efficient with its tools. He said that the company’s growth in recent years has stemmed from ballooning demand for AI solutions, where he agreed Palantir is leading the charge and is poised to transform the way American companies run.

“There is no economy in the world with this kind of corporate leadership which is willing to pivot, which understands technologies, which is willing to look at new things, but also has deep domain expertise. Our allies in the West, in Europe, are going to have to learn from us.”

-Alex Karp, Palantir CEO.

The company’s shares outperformed in 2024 and have continued climbing in 20225 as investors bet on their software and work with key government contractors and agencies. Shares of the Denver-based data analytics and AI software firm are up 74% this year, but investors have to shell out on a higher earning multiple than its tech peers.

The tech billionaire said Thursday in response that those who like the firm’s price can exit. He also maintained that Palantir is not surveilling Americans in response to recent allegations that the company is helping the Trump administration gather data on Americans.

The President signed an order in March that directed federal agencies to remove unnecessary barriers to data consolidation. The New York Times also reported last week that the tech company expanded the reach of its artificial intelligence product within the U.S. government, which could track Americans’ information, from medical to financial.

Warren Davidson, Senator for Ohio, said she hopes to turn Palantir’s power off fundamentally. She argued that the power of combining all information on an individual into one database creates a digital ID and that tech can be abused.

U.S. advances against China in AI 

🇸🇦 SAUDI ARABIA LAUNCHES MASSIVE AI GAMBIT AS TRUMP DESCENDS ON RIYADH

Crown Prince Mohammed bin Salman just launched “Humain,” Saudi Arabia’s state-backed AI venture, funded by the kingdom’s $940B Public Investment Fund.

The goal: rapidly expand domestic AI infrastructure,… https://t.co/jigqeaFHya pic.twitter.com/8zPX5sIexk

— Mario Nawfal (@MarioNawfal) May 13, 2025

China is outpacing the U.S. in AI applications, accounting for over 70% of global AI patent filings and embedding modes across Belt and Road countries, from ports to power grids. Three events last month also confirmed that the rivalry between the U.S. and China over artificial intelligence has entered a new and more dangerous phase. The U.S. began with a May 8 Senate hearing where lawmakers aired concerns that the country’s lead over China was eroding fast. 

A sweeping U.S. ban on Huawei’s Ascend AI chips followed. The U.S. Department of Commerce’s Bureau of Industry and Security (BIS) warned that using the Chinese firm’s AI chips could trigger criminal penalties under U.S. export control laws. The agency also clarified that Huawei’s Ascend processors, specifically the 910B, 910C, and 910D, are subject to strict export controls because they are believed to be designed or manufactured using U.S.-origin technology.

Last month’s last event happened when Trump visited the Middle East to sign expansive AI chip deals with key regional allies. The agreement included building the largest AI campus in Abu Dhabi, giving the UAE access to U.S. advanced AI chips.

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