Palantir CEO Alex Karp calls for “reasonable” AI regulation and liability for builders

Palantir CEO Alex Karp said artificial intelligence regulation should include “reasonable guidelines” that are enforced, while arguing that liability should fall on those who build harmful systems. He also suggested that nationalizing AI labs could be necessary as policymakers debate slowing down frontier models.

Enforced rules and builder liability

Speaking on CNBC’s “Squawk on the Street” on Thursday, Karp argued that regulation must be enforceable. He said the “first line of defense” is holding builders responsible for their own actions.

Karp tied his position to the risks of a still-developing technology and called for both civil and criminal liabilities for developers who are “not being responsible.”

Push for nationalizing AI labs

Karp repeatedly referenced nationalization as a potential remedy. He said, “these businesses have to be nationalized because if you don't nationalize it every single one of my clients is going to sue,” in remarks made during the interview.

His comments arrive amid ongoing calls to slow AI development following warnings about the technology’s dangers.

Policymakers seek oversight, including potential “kill switch” controls

In Washington, lawmakers have pressed for stronger safeguards. Sen. Richard Blumenthal, D-Conn., who introduced AI safety legislation, said the U.S. is on the “verge of losing control completely” and argued for “objective review” before releasing AI models.

The legislative push also includes proposals for a “kill switch” that would require AI labs to build a capability to shut down systems if they go rogue. A bill has been proposed in the House, with similar moves facing backlash in the Senate.

Debate widens beyond AI safety circles

Other tech leaders have joined the regulatory debate. Anthropic policy chief Dario Amodei called for a slowdown in the frontier. OpenAI CEO Sam Altman has also weighed in, and OpenAI reported 6 new instances of “unexpected or concerning” model behavior since March.

President Donald Trump has pushed back on AI risk warnings, calling the concerns a “hoax” in social media posts. Tech executives including Nvidia CEO Jensen Huang and Meta Platforms CEO Mark Zuckerberg have also argued for different approaches, with Zuckerberg saying AI labs that fail to focus on alignment will fall behind.

Why it matters

Karp’s comments connect AI regulation to enforcement and personal accountability, while also reviving the idea of structural control through nationalization. With lawmakers exploring review requirements and shutdown mechanisms, the question is shifting from whether to regulate to how to make safeguards operational.