The US government is breaking up with closed AI models, and Palantir’s CEO wants everyone to know about it.

Alex Karp told CNBC’s Squawk Box on July 1 that multiple US government clients have started transitioning away from proprietary AI models in favor of Nvidia’s open-weight Nemotron models. The shift, Karp emphasized, is driven by a growing demand among government agencies for full control over their data, compute resources, and analytics pipelines.

What the Palantir-Nvidia deal actually looks like

The expanded partnership, formally announced on June 29, pairs Nvidia’s Nemotron family of open-weight models with Palantir’s full platform stack, including AIP, Ontology, Foundry, and Apollo. Together, the companies are calling the integration an “intelligent engine” designed to run inside sovereign and classified environments.

Government agencies and critical infrastructure operators can now customize and deploy AI models using their own sensitive data without shipping it off to some third-party cloud controlled by a closed-model provider.