He accused frontier AI labs of behaving like the capitalists who created the conditions for Marxism. Palantir’s own reporting on AI sovereignty and enterprise data control has made this a central pillar of its sales pitch. The simplest explanation: Palantir builds software that connects AI models to an organization’s private data, internal rules, and real-world operations. Palantir CEO Alex Karp coined the term to criticize how frontier AI labs price their services and encourage overconsumption rather than meaningful enterprise outcomes. AI sovereignty is the principle that organizations should own their AI models, data, and compute rather than renting them from external providers.