Palantir's CEO just exposed Sam Altman and Dario Amodei for robbing every Fortune 500 company.
Within two minutes, Alex Karp took the entire frontier AI industry apart on national television.
His exact words:
"Every single enterprise in this country, these people are LIVID. They are paying for tokens that create no value. These people are stealing the weights and alpha of my business."
He literally said the entire frontier AI business model is intellectual property extraction dressed up as a subscription.
Then he also destroyed the pricing model with a single question that Silicon Valley still refuses to answer:
"If it was so valuable, let's say I can make you $1 billion tomorrow. Wouldn't I say I'll make you $1 billion and I want 30 percent? Why are they charging for tokens if it's so valuable?"
That question breaks the industry.
If OpenAI and Anthropic's models truly delivered the productivity gains the labs claim, they would take equity or a share of the profit they generate. They would not sell access by the million tokens.
Token pricing is itself the CONFESSION that the product cannot produce reliable value at scale. If it did, they would price for the value. But they price for the compute because that is what they are actually selling.
Karp went even further...
He called the entire arrangement "a wealth tax that does not help the poor. It just punishes."
American businesses are transferring the alpha of their operations, meaning the workflows, the customer data, the strategy memos, the internal models that make them competitive, directly into the training pipelines of a handful of Silicon Valley labs. Once those labs retrain, the customer's own edge becomes the next enterprise product sold back to their competitors.
And the part the AI industry does not want anyone thinking about:
Every enterprise running its confidential documents, its customer conversations, and its financial models through a frontier model is potentially teaching that model HOW to replace them.
The vendor collects the token fee AND the compounding intelligence about that customer's business. That is the mechanism. And that is why Karp used the word "stealing."
He claims this is why every executive he meets is furious in private and silent in public. Nobody wants to be the CEO who called out the labs and then discovered their next competitor was built on their own leaked workflows.
The entire AI industry has been priced for perfection on one assumption:
That frontier labs produce durable, defensible value that justifies infinite compute spend.
But Karp just told us that the customers do not believe that assumption anymore. They believe they are being taxed without benefit, watched without consent, and copied without recourse.
The moment enterprises stop believing, the whole valuation stack shakes.
Thought I should clarify with this new post. Anthropic says you can use Fable 5 for coding but it will have tight guard rails. I suppose similar to the original release.
https://t.co/b2miW4gRnG
Have seen some questions about the updated classifiers and wanted to clarify.
As with the original classifiers, a small fraction of routine coding and debugging tasks will be flagged and fall back to Opus.
We're excited for guys to get access back tomorrow.
Anthropic says they are releasing Fable 5 again tomorrow but No coding. Basically just a chatbot. They are partnering with 3, govenment backed and protected, monopolies to decide how they should allow users to access fable 5.
Claude Fable 5 will be available again globally tomorrow.
After a series of productive conversations with the US government, we're redeploying the model with a new set of classifiers to target and block more cybersecurity tasks. In the near term, some routine tasks like coding and debugging will fall back to Opus 4.8. We’ll continue to refine these classifiers over the coming weeks to reduce false positives and better distinguish genuine misuse from legitimate requests.
We’ve also begun drafting a consensus framework—with Amazon, Microsoft, Google, and other Glasswing partners—for assessing the severity of AI jailbreaks and how AI developers should respond to them. We invite other industry partners and model providers to join us in this effort.
Finally, we’re scaling up our collaboration with the US government on model testing and safeguards. This will include pre-release access to models and safeguards for evaluation, information sharing on jailbreaks and misuse, and dedicated resources for joint research.
Thank you to our users for your patience, and to our partners across the government, industry, and the research community who worked alongside us to make Fable 5 available again.
Read our full blog: https://t.co/VHyum831ri
Mark this post: Get ready to start seeing news articles claiming that China ai labs have created a dangerous llm and the governments need to start regulating open source llms to save the women, children, & puppies.
@DavidOndrej1 Unfortunately, the announcement was made before the weekend for a reason. That way everyone would have all weekend to get their frustration out and Monday they will be back to normal as if nothing ever happened.
@stevenheidel Shouldn't have even made an announcement. OpenAI has a new model that they are only going to give a few (Elite class) companies access to because the bottom feeders can't be trusted with this technology.