Palantir CEO Says Better AI Could Prevent Wars, but Warns China Is a Formidable Rival

Alex Karp argues that American technological superiority could discourage attacks, while acknowledging China’s rapid progress and the risks of an AI arms race

Palantir CEO Alex Karp discusses AI and military deterrence
Palantir CEO Alex Karp says American technological superiority could deter future conflicts while warning of China's growing AI capabilities Screenshot: Palantir Technologies/LinkedIn

Palantir CEO Alex Karp believes superior American artificial intelligence could help prevent future wars by deterring potential enemies. But he has warned that China is a formidable rival, challenging Washington's technological advantage as both countries race to develop more advanced AI systems.

Speaking during Palantir's third-quarter earnings call on 2 November 2026, Karp argued that maintaining America's military superiority was essential to discouraging future conflicts.

His remarks came as Palantir reported a 96% increase in quarterly revenue amid growing demand for its AI technology from government and commercial customers.

Palantir CEO Says Military AI Could Deter Future Wars

Karp outlined his position after Deutsche Bank analyst Brad Zelnick questioned the company's description of its work as part of a genuine anti-war movement.

Palantir develops software that helps governments and businesses analyse large amounts of data. Its technology is also used by American defence and intelligence agencies to support military planning and decision-making.

Explaining his position during the earnings call, Karp said: 'I do not actually like war. I want to avoid war. I do not support wars.'

He acknowledged that military conflicts are sometimes necessary. However, he argued that America and its allies must possess superior technology to discourage potential enemies from attacking.

'The way to stop a war is for them to know these things work,' Karp said, referring to American military capabilities.

His argument centres on deterrence: convincing potential adversaries that the consequences of an attack would outweigh any possible benefit.

China Emerges as a Formidable AI Competitor

Despite expressing confidence in American technology, Karp acknowledged that China presents a serious challenge to US leadership in artificial intelligence.

He described China as 'doing exceedingly well at AI' and stressed that Washington must maintain its technological advantage.

Although Karp expressed respect for Chinese culture, his assessment of the rivalry was uncompromising. 'It is us or them,' he said, highlighting what he considers the stakes of the competition.

Karp also argued that European allies must develop a better understanding of advanced AI to remain competitive. He criticised regulatory approaches that treat emerging AI technology like established industries, including telecommunications.

His remarks reflected concerns that excessive bureaucracy could hinder technological development.

Pentagon Moves to Expand Palantir's Military AI

Palantir's growing involvement in American military operations gives Karp's comments particular significance.

In March 2026, Reuters reported that the Pentagon had directed officials to establish Palantir's Maven Smart System as an official military programme of record. The designation was intended to expand its use across American forces and secure more stable long-term funding.

Maven processes information from satellites, drones, radar systems and intelligence reports. It helps military personnel identify potential threats and targets more quickly. Palantir maintains that its software does not make lethal decisions and that human operators remain responsible for approving targets.

However, the growing use of AI in military operations has raised questions about accountability and human oversight.

In August, the United Nations and the International Committee of the Red Cross called for stronger international rules governing autonomous weapons systems.

Their warning concerned weapons capable of operating with reduced human control, rather than a specific finding against Palantir's technology. Nevertheless, the debate highlights the importance of meaningful human oversight as military AI becomes more sophisticated.

Palantir Reports 96% Revenue Growth Amid AI Demand

Karp's comments coincided with another strong financial quarter for Palantir.

According to the company's earnings announcement, revenue reached $2.313 billion (approximately £1.72 billion) in the third quarter of 2026, up 96% from a year earlier.

Its US government business generated $953 million (approximately £708.16 million), while US commercial revenue reached $984 million (£730.87 million). The commercial figure exceeded domestic government revenue for the first time in Palantir's history, highlighting growing demand beyond defence contracts.

The company also raised its full-year revenue forecast to between $8.530 billion (approximately £6.34 billion) and $8.534 billion (£6.34 billion).

The figures demonstrate Palantir's expanding commercial reach, even as its military contracts continue to attract scrutiny over how AI technology is deployed.

Can Better AI Really Prevent Wars?

Karp's argument reflects a long-established military strategy.

Countries with overwhelming defensive and offensive capabilities may discourage adversaries from attacking by making the potential consequences too costly.

However, the technological competition between America and China presents another challenge. Both countries have incentives to develop increasingly sophisticated military AI systems to avoid falling behind.

That competition could strengthen deterrence by making aggression less attractive. It could also intensify an arms race as rival powers invest heavily in technologies designed to maintain military superiority.

For Karp, keeping America ahead in artificial intelligence is essential to protecting the country and its allies. Whether increasingly powerful AI ultimately prevents wars or introduces new security risks remains an open question.