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Alex Karp says the AI safety debate is really about nationalizing AI labs

Alex Karp says there's more to Anthropic's plea for government regulation than safety.

Palantir's CEO said in a Thursday interview with CNBC's "Squawk on the Street" that frontier AI labs like Anthropic are seeking nationalization to protect themselves from future lawsuits alleging they stole intellectual property.

"These businesses have to be nationalized because if you don't nationalize them, every single one of my clients is going to sue," Karp said of AI labs. "The obvious solution is America."

Karp said some of Palantir's clients have told him that their proprietary business ideas are ending up as training data for chatbots and being exposed to the wider world.

"They find out that the competitor next door has all of their output," Karp said.

A potential barrage of lawsuits, Karp said, could spur AI companies to seek government protection to shield them from liability.

"That model would require severe liability protection, and there's only one institution that can do that: the US government," he said.

Karp has previously railed against frontier labs over the issue of data protection.

In June, Palantir published a nine-point manifesto urging companies to keep their data in-house, rather than outsourcing to institutions that Palantir paints as untrustworthy. "Transferring that data hands over access to your pre-existing winning plays and yields the means of production for new ones," reads one point in the manifesto.

Fears about the safety of AI programs exploded into the mainstream after ex-Anthropic engineer Jacob Coxon quit his job earlier this month and issued dire warnings that frontier AI companies like Anthropic and OpenAI are "gambling with our lives."

On Saturday, Anthropic CEO Dario Amodei published an essay advocating for a coordinated slowdown and warning that recursive development, a process by which AI improves itself, could soon produce rogue AI agents capable of taking over the internet. That essay was signal-boosted by OpenAI CEO Sam Altman and SpaceX CEO Elon Musk.

In the essay, Amodei said that "all frontier labs should partner with government" to prevent incidents of misalignment among AI models. "Some forms of coordination that would be impactful for pacing are legally challenging, and will require government support," he said.

President Donald Trump signaled over the weekend that he was uninterested in regulating the industry. "The only control or 'guardrails' that AI needs is a STRONG AND SMART (High IQ!) PRESIDENT, and the U.S.A. has that, in spades!" the president said on social media.

To Karp, the debate is being framed incorrectly.

"This is reported as a regulation, non-regulation movement," Karp said. "That's actually not what this movement is."

"The only way to deal with this kind of liability is to go to the government and say, 'nationalize us, please,'" he added.

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Truman Dickerson

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Truman Dickerson is the Weekend News Fellow at Business Insider, based in New York City. He covers trending tech and business news. He previously reported for The Boston Globe's Express Desk. He graduated from Boston University, where he served as editor in chief of The Daily Free Press, BU's student-run newspaper.Contact him at [email protected]

• Anthropic
• AI

Diablo 4's anniversary event brings back the game's most iconic location, and boy that music is sending me

Diablo 4's current Season of Hell's Legacy is focused on celebrating the 30th anniversary of the series, which debuted all the way back in 1997. As part of that effort, Blizzard has been reaching back into the past to bring back iconic characters and enemies like Deckard Cain, Baal, Mephisto, and of course the Big D himself.

Billionaire investor David Einhorn says younger people are too 'impatient' to build wealth or buy a house

By

Jennifer Sor

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David Einhorn says younger generations' own habits are holding them back from breaking into the housing market or building wealth.

The billionaire founder of Greenlight Capital recently speculated about the reasons younger Americans are falling behind in homeownership. The main reason, in Einhorn's view, is that many young people lack the patience and investment discipline needed to save up for a home, and are funneling their wealth into speculative assets or sports betting.

"I sense the younger generation is just more impatient. They'd rather, you know, speculate in crypto or speculate in stocks or speculate on sporting events and try to build wealth by guessing those things correctly," Einhorn said, speaking in a recent episode of Morgan Stanley's "Break the Playbook" series.

"And some of them will have some success with that, and others will have less success," he added.

Einhorn said younger people are exhibiting a shift in "philosophy," with many wondering why they should front the extra cash to build equity in a home when renting can be cheaper than owning a mortgage.

But owning a home still makes sense from a long-term financial perspective, he said, pointing to the potential for home equity appreciation and how a house often serves as a "savings vehicle."

"Buying a house and paying off your mortgage over 30 years, you know, that requires long-term patience and discipline, and that might be in short supply," Einhorn said.

Younger Americans are less likely to own a home, a trend that has emerged amid a broader slowdown in the housing market driven by high mortgage rates and near-record home prices.

The average 30-year fixed mortgage rate rose to 6.76% last week, up from

The job market, another factor that influences homeownership rates, has also been daunting for younger entry-level workers.

In 2025, 38% of Gen Zers aged 28 owned a home, compared with 42% of Gen Xers and 44% of boomers at that age, according to a Redfin analysis.

Meanwhile, 57% of millennials aged 36 owned a home last year, compared to 61% of Gen Xers and 63% of boomers at that age.

Younger Americans feeling locked out of the housing market is also a major force driving the boom in retail investing, a 2025 report from JPMorganChase Institute found. Last year, 37% of 25-year-olds added funds to a retail investment account, up sixfold from levels a decade ago, the bank said in a report.

Home prices have appreciated more slowly than red-hot stock prices in recent years, another factor that may be pushing younger Americans toward investing rather than saving for a home. The S&P Case-Shiller US National Home Price Index has appreciated by 85% over the last decade, compared to the 253% increase in the S&P 500 in that time.

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Jennifer Sor

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Jennifer Sor is a senior reporter at Business Insider. She covers financial markets and the economy, with a focus on retail investing, job trends, and the pursuit of wealth. She regularly speaks to famed forecasters and top investors in markets, and her work has been referenced in outlets such as CNN, Forbes, and Bloomberg Opinion's "Money Stuff."  She also regularly appears on television and radio to speak about markets and the US economy.Prior to her time at Business Insider, Jennifer covered tech and business news at the San Francisco Chronicle and Los Angeles Business Journal. She graduated from the University of California, Santa Barbara with a bachelor's degree in economics and English.Have an interesting story to share? Please reach out to her at [email protected] or @jennreports.81 on the encrypted messaging app Signal.  

• Housing Market
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