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Alex Karp Criticizes AI Labs For Focusing On Token Consumption

Enterprise Frustrations With AI Frontier Labs

Palantir CEO Alex Karp said some enterprise customers are becoming frustrated with frontier AI companies, arguing that providers are often focused on increasing AI usage rather than solving specific business problems. Speaking with CNBC’s Sara Eisen, Karp criticized what he described as “tokenmaxxing”, an approach that prioritizes greater consumption of AI services instead of delivering measurable outcomes for customers.

Rising Costs And Implementation Challenges

Karp’s comments come as companies continue to increase spending on artificial intelligence tools while facing growing questions about costs and returns on investment. He argued that large language models remain important, but said the greatest value will come from how businesses implement the technology. “It is not that large language models aren’t crucial for the world,” Karp said. “It’s just the implementation is where the value is, certainly in the next seven years.” According to Karp, execution and integration will play a larger role in determining commercial success than access to the models themselves.

Market Dynamics And IPO Momentum

The remarks were made as the AI sector continues to attract significant investor attention. Several leading companies, including OpenAI and Anthropic, are moving toward public market debuts while competition among AI providers continues to intensify.

OpenAI recently confidentially filed for an initial public offering, while Anthropic has also been linked to IPO plans following strong growth in its valuation. The developments reflect continued investor interest in artificial intelligence despite growing scrutiny over infrastructure costs and profitability.

Political And Strategic Implications

Karp also addressed the broader implications of AI development and its influence on public policy. While he has publicly disagreed with some industry leaders on aspects of AI regulation and deployment, he acknowledged the role prominent executives and researchers play in shaping the future direction of the sector.

The discussion highlighted ongoing debates around governance, adoption and the long-term economic impact of artificial intelligence as governments and businesses increasingly incorporate the technology into decision-making processes.

Looking Ahead

Karp said businesses should remain focused on practical outcomes rather than ideological debates surrounding AI. As adoption accelerates, technology companies are likely to face increasing pressure from customers and investors to demonstrate that AI investments translate into measurable business results.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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