AI needs to have 'reasonable guidelines,' Palantir's Karp tells CNBC

Palantir CEO Alex Karp called for "reasonable guidelines" on artificial intelligence regulation but said nationalization may be needed because of the liabilities tied to the technology's "unlimited risks."

"The view that I believe they have is, these businesses have to be nationalized because if you don't nationalize it, every single one of my clients is going to sue," Karp told CNBC's "Squawk on the Street" on Thursday.

Karp repeatedly referenced the risks and responsibilities tied to building the powerful technology, further making a case for nationalizing AI labs and both civil and criminal liabilities for tech builders who are "not being responsible."

"You have to find a way to set reasonable guidelines that are enforced, but you can't do it," he said. "The first line of defense is you're liable for your own actions."