Palantir CEO Alex Karp warned the United States against adopting Europe’s strict regulatory approach to artificial intelligence amid a domestic debate over open models on The Claman Countdown.

Karp said Europe should serve as a warning for U.S. policymakers as the Trump administration considers how to regulate rapidly advancing AI technology.

"We have a template for what doesn't work. It's called Europe," Karp said Monday. "Our business is booming in America… Europe is like trying to find ways to keep companies like Palantir out."

"I've watched Europe regulate itself out of business. You end up with businesses that no one believes are businesses because they only exist behind the firewall of regulation."

His remarks came after Palantir urged the Trump administration not to ban open-weight AI models, while Treasury Secretary Scott Bessent raised concerns that Chinese-made open AI models could be built using technology from U.S. laboratories.

"This revolution has taken off, and you can't put it back in the bag," Karp said.

Karp argued that open-weight AI models are best suited for Palantir’s customers and said they can sometimes outperform frontier models. He said he is not opposed to closed AI models, but is focused on meeting customer demand.

He said many Palantir clients are "enraged" because they believe they have become "token maxed" — a term he used to describe customers frustrated by paying for AI tokens without receiving enough business value in return. That concern, he said, is a more immediate obstacle to adoption than outside competition, because companies want to see measurable value before expanding use.

According to Karp, the main barrier to AI adoption is not concern about foreign competition, but uncertainty over whether AI investments are delivering enough value.

"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,’" he said.

"They want to make sure that they can use that model in a way that it's valuable, and that they make sure the value of their business is not being monetized."

Palantir, which Karp co-founded, moved its headquarters from Denver to Miami in February as many corporations and billionaires seek Florida’s more favorable tax environment.

As Bessent pushes for artificial intelligence regulation, Karp said the international AI race, with China emerging as a major competitor, makes it important for the U.S. to focus on winning.

"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.

Karp rejected both heavy regulation and a lack of regulation, saying the U.S. needs a balance that supports innovation while still addressing risks.

"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.

"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. But because it could go either way, [it] doesn't mean we shouldn't plow forward and try to get this to work."