This article was originally published on May 24, 2022 and has been edited with updated material.
In a rare address to Russian citizens this week, President Vladamir Putin made it clear he wouldn't hold back from using nuclear weapons in defense of Russia. The news drew a response from Palantir Technologies Inc (NYSE:PLTR) CEO Alex Karp, who previously issued a wake-up call for those sleeping on the threat of nuclear war.
What Happened: In a May 24 interview on CNBC's "Squawk Box," Karp warned that we are underestimating the risk of nuclear warfare.
"One of the reasons we underestimate the risk is we've had, since World War II, a system that's functioned ... and people believe that system will override and it will be rational, but we're now in a moment where the system actually flips and there are just moments of complete irrationality," Karp explained.
Why It Matters: Russia's invasion of Ukraine is an irrational act, which adds to the risk of escalation. The defense system has worked in the past, which creates a sense of safety, but Karp suggested the world is far from safe.
"I think most people think the risk [of nuclear war] is like below 1%, of course it depends on the duration. So, if you have a long duration, I think the risk is ... probably in the 20-, 30% range," he said.
Every large nation in the world is reevaluating its capabilities in the wake of the Russia-Ukraine war, Karp said: "The lesson for every big country is holy sh*t!"
Nations are going to realize that they aren't as protected as they think and if adversaries are willing to fight with resolve and heroism and are able to use software to interpret data, our enemies "might actually be able to beat us," Karp said.
"We are in very difficult times," he said. "Palantir is built for difficult times."
From Last Week: Why Palantir May Rally 27% From This Bullish Pattern
PLTR Price Action: Palantir has traded between $6.44 and $29.29 over a 52-week period.
The stock was up 0.48% at $7.40 on Friday, according to data from Benzinga Pro.
Photo: Just Click's With A Camera from Flickr.
