Palantir CEO Issues Warning: ’These AI Investments Don’t Justify Their Sky-High Costs’
Not all AI goldmines are worth digging—some might just be fool's gold.
Palantir's chief throws cold water on hype-driven tech spending.
When even Silicon Valley's data-crunching elite question ROI, maybe check your spreadsheets twice.
Bonus jab: Wall Street's 'AI' budget line? Often just Excel macros with better marketing.
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Karp said that Palantir focuses on that second group that produces real results, like helping governments with military decisions or helping companies run their operations better. He added that this version of AI actually leads to noticeable changes in revenue, profits, or safety, and made it clear that Palantir is not just sharing opinions, but seeing these outcomes in real-world use. It’s this high-impact part of AI that Karp says is worth the investment, not the basic, flashy tools that don’t create measurable value.
While tech companies have been racing to build AI tools, some experts warn that the hype may be too much. Firms like Meta (META), Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL) are expected to spend over $1 trillion on AI infrastructure by 2026. However, critics like Jim Chanos, Michael Burry, and OpenAI’s (PC:OPAIQ) Sam Altman say the stock market may be in a bubble. Nevertheless, Karp still believes that Palantir will lead the enterprise AI space, but stated that the consumer AI market is “very weak and fading.”
Is PLTR Stock a Good Buy?
Overall, analysts have a Hold consensus rating on PLTR stock based on three Buys, 11 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $187.87 per share implies 7.9% upside potential.
