palantir technologies stock news: Palantir CEO Alex Karp predicts U.S.-China AI race will have one winner as GOP slams Trump’s data deal

Palantir CEO warns US-China AI race will have only one winner: Can the West keep up?- Palantir Technologies Inc. (NASDAQ: PLTR) CEO Alex Karp has issued a strong warning about the ongoing artificial intelligence race between the United States and China. Speaking on CNBC’s “Squawk on the Street” Thursday, Karp stated bluntly that the AI arms race “will have one winner,” and he urged Western countries to act quickly or risk falling behind. While he highlighted the benefits of AI, he also underscored its risks, warning that failing to innovate responsibly could put democratic nations at a disadvantage. His comments come amid political criticism and a dip in Palantir’s stock.

Why does Alex Karp believe the U.S.-China AI race will have only one winner?

Karp emphasized that the global competition in artificial intelligence is not just about technology—it’s about values, power, and national security. According to Karp, “either you win or you lose in this game.” He made it clear that the AI race isn’t like traditional markets where multiple players can thrive; instead, there will likely be one dominant power, and he believes it’s crucial that Western democracies lead that charge.

He credited American corporate culture for fostering rapid innovation, saying that U.S. companies are uniquely positioned to adapt quickly and push tech boundaries. “No other economy has corporate leaders as adaptable and tech-savvy while remaining deeply grounded in industry expertise,” he added.

Is the West falling behind in AI innovation?

Karp’s warning wasn’t just for the U.S. government—it was a message for all Western allies. He urged countries in Europe and beyond to learn from America’s aggressive innovation approach. He expressed concern that without similar urgency and investment, other democratic nations could lose ground in AI development, making the global balance of power increasingly tilted in China’s favor.

The urgency he stressed reflects a broader concern among policymakers and tech leaders about China’s rapid advancements in AI, especially in military and surveillance applications.

What’s the controversy surrounding Palantir’s government work?

While Karp made headlines with his AI warnings, Palantir is also facing political heat. Some Republican lawmakers are criticizing the Trump administration’s expanding deals with the company, citing concerns over surveillance and data privacy. There are reports alleging that Palantir helped gather information on Americans during Trump’s term. Karp directly addressed these claims, calling them “ridiculous.” He denied that Palantir surveilled U.S. citizens to aid the federal government, insisting that the company operates within strict legal and ethical frameworks. Still, the pushback from GOP lawmakers has had a market impact. On Thursday, PLTR stock fell by 7.77%, closing at $119.91, following reports of criticism over the company’s government contracts.

How much government work has Palantir secured under Trump?

Despite the controversy, Palantir has significantly expanded its footprint in the federal government. Since Donald Trump took office, the company has secured over $113 million in new or extended contracts, not including a massive $795 million deal with the Department of Defense. These contracts span across various government departments, including defense, intelligence, and public health.

Palantir’s growing role in national security, and its work with the U.S. military, puts it at the center of both innovation and political scrutiny.

How has Palantir’s stock performed in the last year?

Despite recent criticism and Thursday’s stock dip, Palantir has seen a 435% surge in its stock value over the past 12 months. Investors have largely backed the company’s strong positioning in AI and defense technologies, as well as its growing list of public sector and private sector clients.

However, Karp’s comments—and the political tension around federal contracts—signal that volatility may continue. As the AI race intensifies, Palantir’s future may depend just as much on public trust as it does on government funding.

What’s next for Palantir and U.S. leadership in AI?

With countries like China investing billions into AI, Karp’s call for the West to “keep up” isn’t just a company pitch—it’s a broader plea for urgency. Whether it’s through policy changes, public-private partnerships, or stronger investment in AI research, the next few years could decide who leads the global tech frontier.

As the AI landscape evolves, Palantir Technologies remains at the center of the debate—balancing innovation, ethics, politics, and national security. Karp’s stark message is clear: the AI race isn’t slowing down, and only the most prepared nation will win.

FAQs:

Q1: Why did Palantir CEO say the US-China AI race will have one winner?
A1: He believes AI dominance will go to one nation, urging the West to move faster.

Q2: Did Palantir Technologies spy on Americans under Trump?
A2: No, CEO Alex Karp denied all surveillance claims linked to the Trump administration.