In a rare address to Russian citizens this week, President Vladamir Putin made it clear that he wouldn't hold back from using nuclear weapons in defense of Russia. The news was a response from Palantir Technologies Inc PLTR CEO Alex Karp, who previously issued a wake-up call for those who are sleeping on the threat of nuclear war.
What Happened: Karp warned that we are underestimating the risk of nuclear war in a May 24 interview on CNBC's Squawk Box.
One of the reasons we underestimate the risk is that we've had 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 there are just moments of complete irrationality, according to Karp.
Why It Matters: Russia's invasion of Ukraine is an irrational act that adds to the risk of escalation. Karp suggested that the world is far from safe because of the defense system that has worked in the past, which creates a sense of safety.
Most people think the risk of nuclear war is below 1%, of course it depends on the duration. If you have a long time, I think the risk is probably in the 20 --, 30% range, he said.
Karp said that every big country in the world is reevaluating its capabilities in the wake of the Russia-Ukraine war. The 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.
He said that we are in very difficult times. Palantir is built for difficult times. From Last Week: Why Palantir May Rally 27% From This Bullish Pattern
PLTR Price Action: Palantir traded between $6.44 and $29.29 over a 52 week period.
According to Benzinga Pro, the stock was up 0.48% at $7.40 on Friday.
Photo: Just Click's With A Camera from Flickr.