Palantir CEO Warns of AI Arms Race With China

Palantir (PLTR, Financials) CEO Alex Karp said Thursday that artificial intelligence poses serious risks and that the ongoing AI arms race will ultimately be won by either the United States or China. There are positive and negative consequences, and either we win or China will win, Karp told CNBC's Squawk on the Street. He emphasized that the U.S. currently holds an advantage due to corporate willingness to embrace new technologies, but said Western allies, particularly in Europe, are lagging behind and must learn from the U.S. approach.

In the interview, Karp also addressed a recent New York Times report suggesting Palantir is assisting the Trump administration in gathering data on American citizens. He denied the claim, stating, We are not surveilling Americans.

The Denver-based data analytics and AI software firm has gained 74% year to date as investors bet on the company's growing role in U.S. government contracts and defense applications. While the stock continues to outperform broader tech peers, Karp acknowledged investor concerns around its valuation. You don't like the price, exit, he said.