Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTMoz FarooqueWed, July 15, 2026 at 5:07 AM GMT+2 5 min readIt turns out that Palantir (PLTR) CEO Alex Karp's thunderous warning about the AI industry wasn't a one-off rant.Over the past couple of years, the word "AI" has become like a broken record, heard at least once almost every day, often followed by a wave of anxiety.What has happened amid all the FOMO and paranoia is that users have begun sharing virtually everything deemed "confidential" under the sun in search of answers.Microsoft (MSFT) CEO Satya Nadella has now raised a strikingly similar concern in a recent blog post on Sn Scratchpad.Businesses pay for intelligence, but for that to be useful, you need to present the AI model companies with proprietary data, workflows, and corrections that give them a competitive edge. It's actually the reverse of what Nobel Prize-winning economist Kenneth Arrow described as the information paradox.The buyer is essentially giving up their knowledge simply to make use of what they have purchased. Nadella's concern is that companies ultimately pay twice, once in cash and again with institutional know-how over time. Microsoft CEO Satya Nadella argued that the visible cost of AI might just be the beginning."You essentially pay for intelligence twice, once with money, and again with something even more valuable: the proprietary knowledge you must reveal to make that intelligence useful," Nadella wrote in a recent blog post.For AI systems to perform better, there needs to be higher-quality internal context, which likely includes employee prompts, operational procedures, agentic activity, and corrections.More Palantir:CNBC's "Squawk Box," describing the frustration he hears from enterprise customers. "These people are stealing the weights and alpha of my business."Additionally, Karp also challenged the industry's basic pricing model: "If I can make you $1 billion tomorrow, wouldn't I say I'll make you $1 billion, and I want 30%? Why are they charging for tokens if it's so valuable?"Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info