diff --git a/charts/karpenter-crd/templates/karpenter.k8s.aws_ec2nodeclasses.yaml b/charts/karpenter-crd/templates/karpenter.k8s.aws_ec2nodeclasses.yaml
index 981f9c83a39e..3542d57169d2 100644
--- a/charts/karpenter-crd/templates/karpenter.k8s.aws_ec2nodeclasses.yaml
+++ b/charts/karpenter-crd/templates/karpenter.k8s.aws_ec2nodeclasses.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: ec2nodeclasses.karpenter.k8s.aws
 spec:
   group: karpenter.k8s.aws
diff --git a/charts/karpenter-crd/templates/karpenter.sh_nodeclaims.yaml b/charts/karpenter-crd/templates/karpenter.sh_nodeclaims.yaml
index 9a00f213e91e..2a545f77e32b 100644
--- a/charts/karpenter-crd/templates/karpenter.sh_nodeclaims.yaml
+++ b/charts/karpenter-crd/templates/karpenter.sh_nodeclaims.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: nodeclaims.karpenter.sh
 spec:
   group: karpenter.sh
diff --git a/charts/karpenter-crd/templates/karpenter.sh_nodepools.yaml b/charts/karpenter-crd/templates/karpenter.sh_nodepools.yaml
index fd0ce7eeeef4..59fc82255328 100644
--- a/charts/karpenter-crd/templates/karpenter.sh_nodepools.yaml
+++ b/charts/karpenter-crd/templates/karpenter.sh_nodepools.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: nodepools.karpenter.sh
 spec:
   group: karpenter.sh
diff --git a/go.mod b/go.mod
index 7c612336eff2..ab09b7e78562 100644
--- a/go.mod
+++ b/go.mod
@@ -29,7 +29,7 @@ require (
 	k8s.io/utils v0.0.0-20240711033017-18e509b52bc8
 	knative.dev/pkg v0.0.0-20240926013127-c4843b746d24
 	sigs.k8s.io/controller-runtime v0.18.4
-	sigs.k8s.io/karpenter v0.33.11
+	sigs.k8s.io/karpenter v0.33.12-0.20250115234433-900f522dfca5
 )
 
 require (
diff --git a/go.sum b/go.sum
index 5d337cfd8597..d766b82c140c 100644
--- a/go.sum
+++ b/go.sum
@@ -750,8 +750,8 @@ sigs.k8s.io/controller-runtime v0.18.4 h1:87+guW1zhvuPLh1PHybKdYFLU0YJp4FhJRmiHv
 sigs.k8s.io/controller-runtime v0.18.4/go.mod h1:TVoGrfdpbA9VRFaRnKgk9P5/atA0pMwq+f+msb9M8Sg=
 sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd h1:EDPBXCAspyGV4jQlpZSudPeMmr1bNJefnuqLsRAsHZo=
 sigs.k8s.io/json v0.0.0-20221116044647-bc3834ca7abd/go.mod h1:B8JuhiUyNFVKdsE8h686QcCxMaH6HrOAZj4vswFpcB0=
-sigs.k8s.io/karpenter v0.33.11 h1:KkjvNxzN3oqgad0AkDUvqtBg782vz4IehIxljcJ3I7I=
-sigs.k8s.io/karpenter v0.33.11/go.mod h1:HqvyJDzRy/qMHQxzMp1T+yfXzYb+18F9TbU9sZ8LN/0=
+sigs.k8s.io/karpenter v0.33.12-0.20250115234433-900f522dfca5 h1:idyVd7GNLjl2jRmRSK5mh1MIsFnm1TFoj+dBY2wwPm0=
+sigs.k8s.io/karpenter v0.33.12-0.20250115234433-900f522dfca5/go.mod h1:HqvyJDzRy/qMHQxzMp1T+yfXzYb+18F9TbU9sZ8LN/0=
 sigs.k8s.io/structured-merge-diff/v4 v4.4.1 h1:150L+0vs/8DA78h1u02ooW1/fFq/Lwr+sGiqlzvrtq4=
 sigs.k8s.io/structured-merge-diff/v4 v4.4.1/go.mod h1:N8hJocpFajUSSeSJ9bOZ77VzejKZaXsTtZo4/u7Io08=
 sigs.k8s.io/yaml v1.4.0 h1:Mk1wCc2gy/F0THH0TAp1QYyJNzRm2KCLy3o5ASXVI5E=
diff --git a/hack/toolchain.sh b/hack/toolchain.sh
index d6c85127c320..86f4330e16ae 100755
--- a/hack/toolchain.sh
+++ b/hack/toolchain.sh
@@ -16,7 +16,7 @@ tools() {
     go install github.com/mikefarah/yq/v4@latest
     go install github.com/norwoodj/helm-docs/cmd/helm-docs@latest
     go install sigs.k8s.io/controller-runtime/tools/setup-envtest@latest
-    go install sigs.k8s.io/controller-tools/cmd/controller-gen@v0.16.3
+    go install sigs.k8s.io/controller-tools/cmd/controller-gen@latest
     go install github.com/sigstore/cosign/cmd/cosign@latest
     go install -tags extended github.com/gohugoio/hugo@v0.110.0
     go install golang.org/x/vuln/cmd/govulncheck@latest
diff --git a/pkg/apis/crds/karpenter.k8s.aws_ec2nodeclasses.yaml b/pkg/apis/crds/karpenter.k8s.aws_ec2nodeclasses.yaml
index 029d0df76db7..fbed4e571e1e 100644
--- a/pkg/apis/crds/karpenter.k8s.aws_ec2nodeclasses.yaml
+++ b/pkg/apis/crds/karpenter.k8s.aws_ec2nodeclasses.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: ec2nodeclasses.karpenter.k8s.aws
 spec:
   group: karpenter.k8s.aws
diff --git a/pkg/apis/crds/karpenter.sh_nodeclaims.yaml b/pkg/apis/crds/karpenter.sh_nodeclaims.yaml
index d24cc36ed35f..09d8d88f221b 100644
--- a/pkg/apis/crds/karpenter.sh_nodeclaims.yaml
+++ b/pkg/apis/crds/karpenter.sh_nodeclaims.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: nodeclaims.karpenter.sh
 spec:
   group: karpenter.sh
diff --git a/pkg/apis/crds/karpenter.sh_nodepools.yaml b/pkg/apis/crds/karpenter.sh_nodepools.yaml
index 89f67f896901..2bf439e321b7 100644
--- a/pkg/apis/crds/karpenter.sh_nodepools.yaml
+++ b/pkg/apis/crds/karpenter.sh_nodepools.yaml
@@ -3,7 +3,7 @@ apiVersion: apiextensions.k8s.io/v1
 kind: CustomResourceDefinition
 metadata:
   annotations:
-    controller-gen.kubebuilder.io/version: v0.16.3
+    controller-gen.kubebuilder.io/version: v0.17.1
   name: nodepools.karpenter.sh
 spec:
   group: karpenter.sh