Palantir Raises Concerns About China's DeepSeek AI Models

On Monday, Palantir Technologies Inc. (NASDAQ: PLTR) raised alarms about the use of AI models developed by the Chinese startup DeepSeek. The company's concerns center on potential national security threats posed by these models.

What Happened: During discussions, Palantir’s chief revenue officer, Ryan Taylor, emphasized, “We would strongly discourage the use of DeepSeek models and don’t think any customer in the U.S. government will be able to use it,” as reported by Reuters. This statement reflects Palantir's apprehension regarding DeepSeek's technology and its implications.

Despite these serious warnings, Taylor confirmed that Palantir will not terminate relationships with commercial clients who opt to use DeepSeek’s AI models. This stance shows Palantir's attempt to balance its concerns with the needs of its clients.

Moreover, it has been reported that federal agencies, including NASA, have already prohibited their employees from utilizing DeepSeek's technology, highlighting the growing scrutiny surrounding this AI startup.

Palantir recently announced its financial performance, reporting a fourth-quarter revenue of $827.52 million, surpassing the consensus estimate of $775.91 million. For the upcoming first quarter, the company anticipates revenue between $858 million and $862 million, which exceeds projections of $799.35 million.

This information emphasizes the importance of understanding the evolving landscape of AI technologies and their affiliations.

Why It Matters: The CEO of Palantir, Alex Karp, has previously addressed the competitive risks posed by DeepSeek's open-source AI model, which provides lower development costs compared to other options.
The situation has also caught the attention of the White House, where the National Security Council is examining the implications of DeepSeek. White House press secretary Karoline Leavitt referred to this issue as a “wake-up call to the American AI industry.”

Additionally, a report from the online analysis firm Graphika indicated that DeepSeek’s AI models were promoted through social media accounts affiliated with the Chinese government, adding to concerns about the potential influence on U.S. tech stocks.

Price Action: Following these developments, Palantir's shares saw a significant uptick, surging by 22.75% in after-hours trading to reach $102.79. The stock had previously closed at $83.74 earlier that Monday, reflecting a modest gain of 1.52%, according to financial data.

As the AI industry continues to grow, understanding the implications of international partnerships and technologies remains crucial.

Palantir, DeepSeek, AI