What is Palantir, and why are they building a database about you?

In the shadows of Washington’s policy debates, a quiet technological revolution is taking shape—one that could fundamentally alter how the federal government collects, analyzes, and potentially weaponizes data on American citizens. At the heart of this transformation sits Palantir Technologies, the secretive data analytics firm co-founded by tech billionaire Peter Thiel that has become the Trump administration’s go-to contractor for an ambitious plan to merge information across federal agencies into what critics fear could become an unprecedented surveillance apparatus.

The push represents the culmination of Thiel’s decades-long influence campaign within both Silicon Valley and right-wing politics, where he has emerged as the “godfather” of a powerful network of tech billionaires who have shifted dramatically rightward. Once the sole major Silicon Valley figure to back Trump in 2016, Thiel has watched his political philosophy spread throughout the tech elite, with former PayPal colleagues like Elon Musk and proteges like Vice President J.D. Vance now occupying the highest levels of government. This so-called “PayPal Mafia“—a group of billionaires with overlapping business interests and shared anti-regulatory fervor—has become integral to the second Trump administration, with at least three former Palantir employees now working within Musk’s Department of Government Efficiency (DOGE).

Since Trump’s March executive order calling for expanded data sharing across government agencies, Palantir has quietly embedded itself deeper into the federal bureaucracy than ever before. The company has secured over $113 million in new federal contracts and expanded its flagship Foundry platform into at least four major agencies, including the Department of Homeland Security, Health and Human Services, and most recently, the Internal Revenue Service. This technological infrastructure could enable the administration to create detailed digital portraits of Americans by combining bank records, medical claims, student debt information, and disability status—all accessible through a single, searchable database.

The expansion reflects Thiel’s long-standing belief that “freedom and democracy are not compatible,” a philosophy that has guided his investments and political activities for over a decade. While Thiel maintains no official government position, he has direct access to the president, vice president, and virtually every tech figure in Trump’s inner circle, recently hosting an inauguration party at his Washington mansion for the “crème de la crème of the tech world.” As one journalist noted during the 2024 Republican National Convention, “It’s Peter Thiel’s party now”—a sentiment validated by the presence of his handpicked protege as vice president and his former colleagues running key government efficiency initiatives.

But the expansion has also triggered alarm bells within Palantir itself, where current and former employees worry about their company becoming the public face of Trump’s political agenda. Thirteen former employees recently signed a public letter urging the company to reconsider its role, while at least one strategist has resigned over the expanded ICE contracts, calling the work a “red line” she won’t cross.

As privacy advocates file lawsuits and Democratic lawmakers sound warnings about potential abuse, Palantir finds itself at the center of a national debate about the balance between government efficiency and civil liberties. To understand how we arrived at this moment—and what it might mean for American privacy—we need to examine the company behind the technology and the controversial figures who built it.

What is Palantir?

And once again I turned to Perplexity Labs to help me tell the story of Palantir in an interactive way. I am a little bit addicted to this new featureset — it is miraculous. It can build incredibly sophisticated things in a very short amount of time. To view the presentation, simply click the image below to launch it in a new Lightbox window:

And once again, the methodology and the full response are below.

The Prompt

Prepare a high-level presentation on the company Palantir, its origins, its founders, and its current involvement with the Trump administration

The Results

Palantir Technologies: A Comprehensive Overview

This report provides a high-level analysis of Palantir Technologies, examining its corporate origins, founding team, and significant expansion under the Trump administration 1 2. Founded in 2003 as a data analytics company focused on government intelligence, Palantir has evolved into a $300 billion technology giant that now serves as a critical infrastructure provider for federal agencies and major corporations 3 5.

Data analytics and surveillance concept illustration

Company Overview

Palantir Technologies Inc. operates as a publicly-traded American software company specializing in big data analytics platforms 2 5. Headquartered in Denver, Colorado, the company employs over 4,000 people across 25+ global office locations 3 8. The company’s name derives from the “seeing stones” in J.R.R. Tolkien’s Lord of the Rings series, reflecting its mission to provide comprehensive visibility into complex data landscapes 2 14.

The official logo of Palantir Technologies

The company trades on NASDAQ under the symbol PLTR and has achieved remarkable financial growth, with its market capitalization approaching $300 billion as of 2025 13 28. Palantir’s business model centers on providing software platforms that integrate, manage, and analyze vast amounts of data for both government and commercial clients 1 6.

Exterior view of the Palantir headquarters buildingaxios

Origins and Founding Story

Palantir Technologies was founded in 2003 by a group of former PayPal employees during the post-9/11 era when the United States government was expanding surveillance capabilities 10 14. The company received initial funding from In-Q-Tel, the venture capital arm of the CIA, with the explicit goal of creating software to assist in counter-terrorism efforts 14 18.

The founding team recognized that existing technology was inadequate for handling the complex data analysis needs of intelligence agencies 1214. Traditional systems were too rigid for novel problems, while custom solutions required extensive time to deploy and maintain 1 6. This technological gap created the opportunity for Palantir to develop a different kind of data analytics platform.

Early contracts focused on assisting the United States Intelligence Community and Department of Defense with counter-terrorism investigations and operations 2 6. The company’s software enabled users to identify patterns within vast datasets, ranging from signals intelligence sources to reports from confidential informants 6 25.

The Founders

Palantir was co-founded by five individuals, each bringing unique expertise from their previous experience at PayPal and other technology ventures 10 14 15.

Peter Thiel, a founder and chairman of Palantir Technologiesjapantimes.co

Peter Thiel serves as Co-founder and Chairman, representing one of the most influential figures in Silicon Valley 10 15. With a net worth of $20.8 billion as of 2025, Thiel previously co-founded PayPal, made the first outside investment in Facebook, and established Founders Fund 10 13. His political connections as a Trump ally and major GOP donor have proven strategically valuable for Palantir’s government contracts 13 17.

Alex Karp, CEO of Palantir Technologies, in front of the company signpalantir

Alex Karp functions as Co-founder and CEO, bringing an unconventional background with a PhD in neoclassical social theory 1216. As Thiel’s former Stanford Law School roommate, Karp describes himself as a “progressive warrior” while simultaneously advocating for “Western superiority” 16 18. His leadership style includes philosophical references to figures like St. Augustine and Nietzsche, though critics argue his rhetoric masks authoritarian technological ambitions 16 24.

The remaining co-founders include Joe Lonsdale (venture capitalist), Stephen Cohen (Co-founder & President, former PayPal engineer), and Nathan Gettings (former PayPal employee), all contributing technical and business expertise from their PayPal experience 14 25.

Product Portfolio

Palantir operates four main software platforms designed for different user segments and applications 252730.

Palantir Gotham serves as the intelligence and defense platform, primarily used by government agencies, military units, and the intelligence community 2 25. This platform integrates data from multiple sources to support defense operations and has been credited with assisting in high-profile operations, including reportedly helping to locate Osama bin Laden 2527.

Palantir Foundry targets commercial clients, providing data integration and analytics tools for enterprises 2 5. Major corporate users include Airbus, BP, Morgan Stanley, and other Fortune 500 companies seeking to optimize business operations and decision-making processes 5 38.

Palantir Apollo operates as the continuous deployment platform that manages software deployment across various environments 2527. This infrastructure layer enables both Gotham and Foundry to scale effectively across different operational contexts 2730.

Palantir AIP (Artificial Intelligence Platform) represents the company’s newest offering, designed to deploy large language models and AI capabilities securely 25 30. This platform enables organizations to integrate generative AI into their operations while maintaining data security and compliance requirements 30 32.

Skywise service offerings for the aviation industryreddit

Financial Performance and Growth

Palantir has demonstrated exceptional financial performance, particularly during 2024 and 2025 28 37 40. The company’s stock price increased by 340% in 2024, followed by an additional 64% gain through May 2025, making it the leading performer in the Nasdaq-100 37 40 42.

Palantir Technologies Financial Performance and Growth Metrics (2023-2025)

Revenue growth has accelerated significantly, with Q1 2025 revenue reaching $884 million, representing 39% year-over-year growth 28 42. The company projects 2025 full-year revenue between $3.89-3.90 billion, indicating 36% annual growth 28 37. Government contracts account for 54.9% of total revenue, while commercial clients represent 45.1% 9 28.

Palantir Technologies: Comprehensive Financial Performance Dashboard

The U.S. commercial segment has shown particularly strong growth at 71% year-over-year in Q1 2025, reaching $255 million 42 44. U.S. government revenue also expanded robustly, growing 45% to $373 million in the same period 42 43. The company has achieved GAAP operating profitability for six consecutive quarters, with Q2 2024 operating margin reaching 16% 31 28.

Trump Administration Involvement

Palantir’s relationship with the Trump administration represents a significant expansion of its government business, with contracts totaling over $113 million in new agreements since Trump assumed office 18 19 21.

Palantir’s Major Trump Administration Contracts and Strategic Partnerships in 2025

Major Government Contracts

The Department of Defense awarded Palantir a substantial $795 million contract expansion for the Maven Smart System, representing the largest single agreement 21 47. The Army Vantage Platform received a $401 million follow-on contract to continue providing military data analytics and decision-making capabilities 7 21.

Immigration and Customs Enforcement (ICE) contracted Palantir for $30 million to develop a real-time migrant movement tracking system, supporting the administration’s deportation objectives 17 18 24. This contract has generated significant controversy from privacy advocates and former employees 17 24.

DOGE Collaboration

Palantir has become deeply integrated with Elon Musk’s Department of Government Efficiency (DOGE), which aims to reduce federal spending while centralizing data capabilities 19 20 22. The company is building a “mega API” for the Internal Revenue Service to create unified access to all IRS databases, potentially enabling comprehensive taxpayer surveillance 22 19.

DOGE recruited extensively from Palantir alumni and Peter Thiel networks, creating close operational relationships between the organizations 23 45. Defense Secretary Pete Hegseth issued directives giving DOGE teams oversight of all unclassified Pentagon contracts, further expanding Palantir’s influence 48 20.

The collaboration supports Trump’s executive order to eliminate “information silos” across government agencies, with Palantir’s Foundry platform now integrated into at least four federal agencies including the Department of Homeland Security and Health and Human Services 19 22 43.

palantir-recent-developments.md

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Controversies and Criticisms

Palantir faces mounting criticism regarding its expanding surveillance capabilities and potential for authoritarian misuse 17 29 32. In May 2025, thirteen former Palantir employees published a letter condemning the company’s work with the Trump administration, specifically criticizing immigration enforcement assistance and potential violations of civil liberties 17 20.

Privacy advocates argue that Palantir’s technology enables extensive surveillance that infringes on individual privacy rights and allows governmental overreach 29 24. The company’s involvement in predictive policing initiatives has been criticized for reinforcing existing biases and leading to discriminatory practices 29 16.

International concerns have emerged regarding Palantir’s business practices, with the UK’s chief commercial officer criticizing the company’s strategy of offering free trial periods to gain market footholds, describing it as “contrary to the principles of public procurement” 36 29. This approach has led to vendor lock-in situations where government agencies become dependent on Palantir systems 36 24.

Former employees and critics warn that the company is “building the infrastructure of the police state” and “normalizing authoritarianism under the guise of a ‘revolution’ led by oligarchs” 20 24. These concerns center on the potential misuse of AI-powered surveillance tools originally designed for combat zones being deployed domestically 16 24.

Future Outlook and Strategic Position

Palantir is positioned at the intersection of several powerful technological and political trends, including AI adoption, digital transformation, and expanded government surveillance capabilities 41 44 46. The company’s unique relationships with both the Trump administration and major technology leaders like Elon Musk provide strategic advantages for securing future contracts 18 47.

The global AI market is projected to reach $190.61 billion by 2025, with Palantir’s AIP platform well-positioned to capture significant market share 46 44. The company’s government relationships provide both revenue stability and access to innovative use cases that drive product development 41 47.

However, significant risks remain, including regulatory scrutiny, valuation concerns with the stock trading at over 100 times sales, and growing ethical opposition to surveillance technologies 40 44 20. The company’s heavy dependence on political relationships and government contracts creates vulnerability to policy changes and public opposition 24 17.

As Palantir continues expanding its role as the “operating system for government,” it represents both a technological achievement and a concerning concentration of surveillance power in private hands 18 16. The company’s trajectory under the Trump administration will likely determine whether it becomes an essential digital infrastructure provider or faces significant regulatory and ethical constraints 20 48.