Palantir CEO Alex Karp said Europe offers a template for what doesn't work in AI regulation. He urged the Trump administration not to ban open models and to strike a balance that lets the US win the AI race.
Palantir CEO Alex Karp warned the United States against copying Europe's approach to artificial intelligence regulation, saying the region offers a template for what does not work.
"We have a template for what doesn't work. It's called Europe," Karp said Monday on FOX Business. "Our business is booming in America... Europe is like trying to find ways to keep companies like Palantir out."
Karp said Europe has regulated itself out of business, leaving companies that exist only behind regulatory firewalls. His comments come as the Trump administration weighs how to handle fast-moving AI technology and as Treasury Secretary Scott Bessent raises concerns about Chinese-made open AI models built using U.S. technology.
Palantir has urged the administration not to ban open-weight AI models. Karp argued that such models often perform better than frontier models and are optimal for the company's customers. He said many Palantir clients are "enraged" because they feel "token maxed" – paying for AI tokens without enough business value in return.
"What slows down AI adoption in this country is people are saying, 'But I can't use these products because I'm not getting value... or I'm transferring the value of my business to someone else,'" Karp said.
Karp rejected both over-regulation and under-regulation. He said the U.S. must strike a balance that encourages innovation while addressing dangers.
"There's like you have hard regulation, which is Europe, that clearly doesn't work. Then you have no regulation. Obviously, I'm not in favor of that," he said.
He said the biggest obstacle to AI adoption is not fear of foreign competition but businesses questioning whether AI investments deliver enough value. Customers want to use models in a way that preserves the value of their own business, Karp said.
As the international AI race intensifies with China scaling as a major competitor, Karp said winning must remain the focus.
"We are going to end up having to regulate AI, there's no doubt, but the question is: Who regulates it, do they understand what they're doing, and is it regulated in a way where we win?" Karp told FOX Business.
Palantir, co-founded by Karp, moved its headquarters from Denver to Miami in February as many corporations and billionaires seek Florida's friendlier tax environment. The company's PLTR stock page shows an Alpha Score of 39 out of 100, labeled Mixed, reflecting the uncertainty around regulatory outcomes and customer adoption.
"These are very complicated issues, and there's only one country in the world that could get it right or really get it wrong, and that's us," Karp said. "But because it could go either way, [it] doesn't mean we shouldn't plow forward and try to get this to work."
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