Galaxy’s Mike Novogratz Warns AI Is Quietly Commoditizing Humans, Calls Palantir CEO's TV Rant Most Honest He's Seen

• Mike Novogratz called Alex Karp’s recent CNBC interview one of the most honest discussions of AI he has seen, describing it as an indictment of the industry's data-driven business model.
• Novogratz warned that AI companies are absorbing vast amounts of personal and corporate data, potentially leading to the "commoditization" of humans.
• He said AI adoption is advancing faster than governments can develop safeguards around data privacy and national security.

Galaxy Digital (GLXY) CEO Mike Novogratz said Palantir (PLTR) CEO Alex Karp's fiery CNBC interview exposed something uncomfortable: AI's business model may be quietly commoditizing the humans who feed it.

"I thought his unfiltered CNBC interview, which I watched twice, was probably among the most honest things that I've seen on television in a very long time," Novogratz said on the SALT podcast on Saturday. 

"But he basically gave you an indictment of the AI business model that they're basically absorbing information from all of us, absorbing information from all the companies, and the result of which will lead to some sort of human commoditization.” “But something has gone completely wrong,” he added.

Novogratz said the pace of AI adoption was outrunning regulators' ability to respond. "It's happening faster than we can process as a government, right?" he said. "As a government, to figure out how to protect, you know, national data."

The comments come as Galaxy has been building its AI infrastructure, a bet that gives Novogratz a front-row view of the industry he's now warning about. 

The company's Helios data center campus in West Texas, originally built as a Bitcoin (BTC) mining facility, was being converted into a multi-gigawatt AI and high-performance computing (HPC) campus.

GLXY stock closed down by 0.88% on Friday. On Stocktwits, the retail sentiment around GLXY remained in the ‘bearish’ zone, while chatter around it stayed at ‘normal’ levels over the past day.

Tying AI Anxiety To Market Rotation

Novogratz extended the theme to equity markets, floating the possibility that SpaceX (SPCX) stock could trade below its implied $1.5 trillion IPO valuation within three months. He tied the prediction to a broader view that capital is rotating between AI-linked equities and crypto as investor risk appetite shifts between the two trades.

His comments came the same week Robinhood's (HOOD) newly launched blockchain network posted decentralized exchange volume large enough to outrank established chains, including Hyperliquid (HYPE) and Arbitrum (ARB).

Karp's Token-Pricing Critique

Novogratz's comments referenced Karp’s CNBC interview earlier this month, in which the Palantir CEO criticized the token-based pricing model used by AI labs including OpenAI (OPEAZZX) and Anthropic (ANTHZZX), accusing them of overcharging enterprise customers while extracting proprietary data that could later be used to compete with those same customers. 

Novogratz said he personally wasn’t worried about his own firm's proprietary data being exposed through AI tools, comparing the shift to information simply moving "onto the cloud." Still, he acknowledged the dilemma facing corporate leaders more broadly. "If you're the CEO of a big company... would you worry about that?" he said, describing conversations with executives grappling with how to protect internal data while still using AI tools to stay competitive.

PLTR stock closed down over 1% on Friday. On Stocktwits, the retail sentiment around PLTR remained in the ‘bullish’ zone, while chatter around it stayed at ‘normal’ levels over the past day.

Read also: Michael Saylor Downplays BIP 110 Spam Filter Debate, Calls Consensus Change Precedent The Real Risk To Bitcoin

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