Palantir Technologies CEO Alex Karp said Thursday that frontier AI labs like Anthropic and OpenAI may hand Washington 50% of their businesses to escape client lawsuits. Speaking on CNBC's "Squawk on the Street," Karp said the public misreads the AI safety debate as a clash over regulation, arguing the labs believe "these businesses have to be nationalized because if you don't nationalize them, every single one of my clients is going to sue." He said much of the exposure comes from labs absorbing sensitive data from corporate customers and using it to sharpen their models, and only Washington can cap a risk that size. Asked how such liabilities would appear in an S-1, Karp questioned whether the labs would ever go public, saying the only escape from "unlimited liability" would be to offer the government half the company, a step he warned would collapse its value several times over. Karp called for "reasonable guidelines" while insisting "the first line of defense is you're liable for your own actions," and said developers who ignore disclosed risks should face civil and criminal penalties. His remarks followed Dario Amodei's Sept. 12 essay urging the industry to slow frontier development, which Sam Altman and Elon Musk backed; Nvidia CEO Jensen Huang countered that safety is "an engineering problem, not a legal one." Anthropic confidentially filed for an initial public offering on Jun. 1, days after a $65 billion funding round valued it at $