Investing.com -- Palantir Technologies CEO Alex Karp said Wednesday that enterprise customers are dissatisfied with how frontier AI labs operate.

Karp told CNBC that private conversations with every enterprise client reveal frustration with these companies. He said customers believe frontier labs fail to understand their businesses and focus primarily on "tokenmaxxing," which refers to burning through AI tokens to demonstrate productivity.

Rising costs have become a concern on Wall Street as businesses increase AI usage in their operations while model expenses climb.

"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."

The comments come as Anthropic and OpenAI move toward public offerings. OpenAI said Monday it confidentially filed for an initial public offering, one week after Anthropic announced similar plans.

Karp told CNBC that most of Anthropic's public projects run on Palantir's platform. He described Anthropic CEO Dario Amodei as "a very, very important person" leading what he called the top frontier model company.

Karp also addressed the politicization of artificial intelligence, saying he believes the technology will drive major political decisions in the United States.

"You can't do a blue-red debate," he said. "This is a massive revolution and there's opportunities only America has, and there are dangers in this revolution."